Select Medical Holdings' Q2 revenue rises to meet estimates

Overview

• Select Medical Q2 revenue grows 4.5% yr/yr, meets analyst expectations

• EPS from continuing operations rises 88.2% to $0.32

• Adjusted EBITDA for Q2 increases 0.5% to $125.4 mln

Outlook

• Select Medical reaffirms 2025 revenue outlook of $5.3 bln to $5.5 bln

• Company expects 2025 Adjusted EBITDA between $510 mln and $530 mln

• Select Medical forecasts 2025 EPS between $1.09 and $1.19

Result Drivers

• REHABILITATION HOSPITALS - Revenue increased 17.2% due to higher patient admissions and occupancy rates

• OUTPATIENT REHABILITATION - Revenue grew 3.8% driven by increased patient visits

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the healthcare facilities & services peer group is "buy"

• Wall Street's median 12-month price target for Select Medical Holdings Corp is $21.00, about 31% above its July 30 closing price of $14.48

• The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 14 three months ago

Press Release: ID:nPn3mrv9Ga