Select Medical's (SEM) Q2 Earnings Beat Estimates, Rise Y/Y

Select Medical Holdings Corporation SEM delivered second-quarter earnings of 38 cents per share. The Zacks Consensus Estimate was of a loss of 6 cents. Moreover, the bottom line improved 15.2% year over year on the back of lower costs and expenses.

Meanwhile, net operating revenues decreased 9.3% year over year to $1.23 billion due to COVID-19 pandemic and a weak performance by the Outpatient Rehabilitation and Concentra segments. However, the top line beat the Zacks Consensus Estimate by 1.1%.

Total cost and expenses fell 5.5% to $1.1 billion owing to lower cost of services, and general and administrative costs.

Adjusted EBITDA dropped 4% year over year to $178.8 million.

Select Medical Holdings Corporation Price, Consensus and EPS Surprise

Select Medical Holdings Corporation Price, Consensus and EPS Surprise

Select Medical Holdings Corporation price-consensus-eps-surprise-chart | Select Medical Holdings Corporation Quote

Critical Illness Recovery Hospital

Operating revenues increased 12.7% to $519.6 million on the back of better patient days.

Adjusted EBITDA for the segment jumped 39.9% to $89.7 million.

Rehabilitation Hospital Segment

Operating revenues were up 5.2% to $168.7 million, led by expanded patient volumes and revenue per patient day. Adjusted EBITDA dropped 8% to $27.6 million.

Outpatient Rehabilitation

Operating revenues plunged 36.2% to $167.1 in the second quarter due to lower visits.

Adjusted EBITDA losses of $6.3 million came against the year-ago quarter’s Adjusted EBITDA of $42.6 million.

Concentra

Operating revenues were down 24.5% year over year to $312.3 million due to a dip in the number of visits.

Adjusted EBITDA declined 45.5% to $41.5 million.

Balance Sheet Position

At the end of the second quarter, the company had $3.3 billion of long-term debt, net of current portion, down 0.9% from the level at 2019 end.

Total equity of $1172 million increased 26.2% from the level on Dec 31, 2019.

Total cash and cash equivalents of $509 million were up 51.8% from the level as of Dec 31, 2019.

Cash flow provided by operating activities as of Jun 30, 2020 was $642 million, increasing sevenfold year over year.

Share Repurchase Update

Select Medical did not buy back shares in the second quarter.

Zacks Rank

Select Medical currently carries a Zacks Rank #4 (Strong Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Other Medical Sector Releases

Of the medical sector players that have reported second-quarter results so far, earnings of UnitedHealth Group Incorporated UNH, HCA Healthcare, Inc. HCA and Universal Health Services, Inc. UHS beat the respective Zacks Consensus Estimate.

Looking for Stocks with Skyrocketing Upside?

Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.

Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.

See the pot trades we're targeting>>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
UnitedHealth Group Incorporated (UNH) : Free Stock Analysis Report
 
Universal Health Services, Inc. (UHS) : Free Stock Analysis Report
 
HCA Healthcare, Inc. (HCA) : Free Stock Analysis Report
 
Select Medical Holdings Corporation (SEM) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research