Select Medical Shares Fall 5% Even After Q3 Earnings Exceed Expectations Due to Patient Volumes
Written by Emily J. Thompson, Senior Investment Analyst
Source: NASDAQ.COM
Select Medical Holdings Corporation Q3 2025 Results: Select Medical's shares fell 5.4% following its Q3 2025 report, which showed a decline in adjusted EPS by 11.5% year-over-year despite a 7.2% increase in net operating revenues to $1.4 billion, surpassing estimates.
Segment Performance: The Critical Illness Recovery Hospital segment faced profitability pressure due to a decline in patient days, while the Rehabilitation Hospital segment saw revenue growth from higher admissions and occupancy rates.
Financial Outlook: Select Medical raised its 2025 EPS guidance to between $1.14 and $1.24, with expected revenues of $5.3-$5.5 billion, indicating a 4.1% increase from 2024.
Comparative Performance in Healthcare Sector: Other healthcare companies like Cigna, Tenet Healthcare, and UnitedHealth Group reported mixed results, with some exceeding earnings estimates while facing challenges in revenue growth and profitability.
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Analyst Views on UNH
Wall Street analysts forecast UNH stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for UNH is 397.82 USD with a low forecast of 330.00 USD and a high forecast of 444.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
19 Analyst Rating
16 Buy
3 Hold
0 Sell
Strong Buy
Current: 292.290
Low
330.00
Averages
397.82
High
444.00
Current: 292.290
Low
330.00
Averages
397.82
High
444.00
About UNH
UnitedHealth Group Incorporated is a healthcare and well-being company. Its segments include Optum Health, Optum Insight, Optum Rx, and UnitedHealthcare, which includes UnitedHealthcare Employer & Individual, UnitedHealthcare Medicare & Retirement and UnitedHealthcare Community & State. Optum Health offers comprehensive and patient-centered care, addressing the physical, mental, social, and financial well-being. Optum Health delivers primary, specialty and surgical care; helps patients and providers navigate and address complex, chronic and behavioral health needs. Optum Insight connects the healthcare system with services, analytics and platforms that make clinical, administrative and financial processes simpler and more efficient for all participants in the healthcare system. Optum Rx offers a range of pharmacy care services through retail pharmacies, through home delivery, specialty and community health pharmacies and the provision of in-home and community-based infusion services.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
UnitedHealth Shares Plunge 20% Amid Disappointing Earnings and Medicare Proposal
- Earnings Miss: UnitedHealth reported Q4 2025 adjusted EPS of $2.11, meeting expectations, but its revenue of $113.2 billion fell short by approximately $520 million, indicating significant revenue pressure on the company.
- Bleak Outlook: Management guided for 2026 revenue exceeding $439 billion, significantly below the analyst consensus of $456 billion, marking the company's first annual revenue decline in over three decades, resulting in a market capitalization loss of over $50 billion.
- Rising Medical Costs: The medical care ratio for 2025 stood at 89.1%, up from 85.5% in 2024, reflecting pressures from reduced Medicare funding and rising medical costs, which adversely affect the company's profitability.
- Divergent Analyst Views: Despite the sharp decline in stock price, some analysts maintained Buy ratings, viewing the market reaction as overdone and anticipating potential revisions to Medicare Advantage payment rates by CMS in April, which could provide a rebound opportunity for the company.
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