SEM Earnings Prediction
The chart below shows how SEM performed 10 days before and after its earnings report, based on data from the past quarters. Typically, SEM sees a -0.05% change in stock price 10 days leading up to the earnings, and a +1.80% change 10 days following the report. On the earnings day itself, the stock moves by -1.66%. This data can give you a slight idea of what to expect for the next quarter's release.
SEM Key Earning Data
2024/Q4
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Gross Margin
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Net Margin
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SEM Earnings Analysis
Select Medical Holdings Corp Corporation (SEM.N) Earnings Conference Call
Positive
Successful Spin-Off Execution: The company completed a successful spin-off of Concentra, reflecting strong operational execution and strategic focus.
Debt Refinancing Strategy: Select Medical refinanced $1.6 billion of outstanding debt, improving financial flexibility with lower interest rates and extended maturities.
Inpatient Rehabilitation Capacity Expansion: The company added 94 inpatient rehabilitation beds in Q4, demonstrating growth in capacity and service offerings.
Strong Revenue Performance: All three divisions exceeded prior year revenue in Q4, with a combined revenue increase of 8%, indicating strong overall performance.
EBITDA Growth and Efficiency: Adjusted EBITDA grew by 4% in Q4, reflecting operational efficiency and profitability improvements.
Critical Illness Division Growth: The critical illness recovery hospital division saw a 6% increase in revenue and a 10% increase in adjusted EBITDA, showcasing strong demand and operational success.
Outpatient Rehab Performance Growth: The outpatient rehab division reported a 7% increase in revenue and an 18% increase in adjusted EBITDA, highlighting effective management and growth strategies.
Bed Expansion Plans: The company expects to add 481 additional beds in 2025 and 2026, indicating a strong growth trajectory and commitment to expanding services.
Earnings Per Share Increase: Adjusted earnings per share from continuing operations increased to $0.94 for the full year, up from $0.54 in the prior year, reflecting improved profitability.
Cash Dividend Declaration: The board declared a cash dividend of $0.0625 per share, demonstrating a commitment to returning value to shareholders.
Negative
Profitability Decline Analysis: Dilution loss per common share from continuing operations was $0.19 for Q4, compared to earnings per common share of $0.12 in the same quarter last year, indicating a significant decline in profitability.
Inpatient Rehab EBITDA Decline: Adjusted EBITDA for the inpatient rehab division declined by 6%, with the adjusted EBITDA margin dropping from 25.5% to 21.2%, primarily due to startup losses at new facilities and integration costs.
Inpatient Rehab Occupancy Decline: Occupancy rate for the inpatient rehab division decreased to 81%, down 4% from the prior year, attributed to the impact of new hospitals.
EBITDA Impact from Hurricanes: Despite overall revenue growth, the company faced a negative EBITDA impact of slightly over a million dollars due to hurricanes Helene and Milton affecting southern outpatient markets.
Share Repurchase Program Status: The company did not repurchase any shares under its board-authorized share repurchase program this quarter, indicating a potential lack of confidence in stock performance or cash flow management.
High Debt Concerns: The company’s debt remains high at $1.7 billion, with a net leverage of 3.18 times, which could pose risks for future financial stability.
SEM FAQs
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SEM Earning Call Sentiment
Select Medical Holdings Corporation (NYSE:SEM) Q4 2024 Earnings Call Transcript
SEM.N
0.43%Positive
The earnings call presents a mixed outlook. Financial performance shows growth in revenue and EBITDA, but there are concerns with debt levels, declining margins in the inpatient rehab division, and operational challenges. The Q&A section highlights uncertainties, particularly around startup costs and margin impacts. Positive factors include revenue growth and optimistic guidance for new facilities, but high debt and lack of share repurchase are negative. Given the market cap, these mixed signals likely lead to a neutral stock price movement.
