SEM

The market for 7-Eleven Malaysia Holdings Berhad's (KLSE:SEM) shares didn't move much after it posted weak earnings recently. We think that the softer headline numbers might be getting counterbalanced by some positive underlying factors. This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality. As finance nerds would already know, the accrual ratio from cashflow is a key measure for assessing how well a company's free cash flow (FCF) matches its profit. To get the accrual ratio we first subtract FCF from profit for a period, and then divide that number by the average operating assets for the period. You could think of the accrual ratio from cashflow as the 'non-FCF profit ratio'. Therefore, it's actually considered a good thing when a company has a negative accrual ratio, but a bad thing if its accrual ratio is positive. That is not intended to imply we should worry about a positive accrual ratio, but it's worth noting where the accrual ratio is rather high. To quote a 2014 paper by Lewellen and Resutek, "firms with higher accruals tend to be less profitable in the future". 7-Eleven Malaysia Holdings Berhad has an accrual ratio of -0.18 for the year to March 2026. Therefore, its statutory earnings were very significantly less than its free cashflow. Indeed, in the last twelve months it reported free cash flow of RM144m, well over the RM24.9m it reported in profit. 7-Eleven Malaysia Holdings Berhad's free cash flow improved over the last year, which is generally good to see. That might leave you wondering what analysts are forecasting in terms of future profitability. Luckily, you can click here to see an interactive graph depicting future profitability, based on their estimates. Happily for shareholders, 7-Eleven Malaysia Holdings Berhad produced plenty of free cash flow to back up its statutory profit numbers. Based on this observation, we consider it possible that 7-Eleven Malaysia Holdings Berhad's statutory profit actually understates its earnings potential! On the other hand, its EPS actually shrunk in the last twelve months. At the end of the day, it's essential to consider more than just the factors above, if you want to understand the company properly. If you want to do dive deeper into 7-Eleven Malaysia Holdings Berhad, you'd also look into what risks it is currently facing. For example, 7-Eleve...

Earnings results often indicate what direction a company will take in the months ahead. With Q1 behind us, let’s have a look at Select Medical (NYSE:SEM) and its peers. The outpatient and specialty care industry delivers targeted medical services in non-hospital settings that are often cost-effective compared to inpatient alternatives. This means that they are more desired as rising healthcare costs and ways to combat them become more and more top-of-mind. Outpatient and specialty care providers boast revenue streams that are stable due to the recurring nature of treatment for chronic conditions and long-term patient relationships. However, their reliance on government reimbursement programs like Medicare means stroke-of-the-pen risk. Additionally, scaling a network of facilities can be capital-intensive with uneven return profiles amid competition from integrated healthcare systems. Looking ahead, the industry is positioned to grow as demand for outpatient services expands, driven by aging populations, a rising prevalence of chronic diseases, and a shift toward value-based care models. Tailwinds include advancements in medical technology that support more complex procedures in outpatient settings and the increasing focus on preventive care, which can be aided by data and AI. However, headwinds such as reimbursement rate cuts, labor shortages, and the financial strain of digitization may temper growth. The 7 outpatient & specialty care stocks we track reported a strong Q1. As a group, revenues beat analysts’ consensus estimates by 1.9% while next quarter’s revenue guidance was in line. Luckily, outpatient & specialty care stocks have performed well with share prices up 32.9% on average since the latest earnings results. With a nationwide network spanning 46 states and over 2,700 healthcare facilities, Select Medical (NYSE:SEM) operates critical illness recovery hospitals, rehabilitation hospitals, outpatient rehabilitation clinics, and occupational health centers across the United States. Select Medical reported revenues of $1.42 billion, up 5% year on year. This print exceeded analysts’ expectations by 0.9%. Despite the top-line beat, it was still a slower quarter for the company with a significant miss of analysts’ EPS estimates and full-year EPS guidance in line with analysts’ estimates. The market was likely pricing in the results, and the stock is flat...

Select Medical Holdings Corporation SEM reported first-quarter 2026 adjusted earnings per share (EPS) of 36 cents, which missed the Zacks Consensus Estimate by 16.3%. The bottom line declined 18.2% year over year. Net operating revenues advanced 5% year over year to $1.4 billion. The top line beat the consensus mark by 1.5%. The quarterly earnings suffered due to an elevated expense level and a decline in patient days, exerting pressure on profitability in the Critical Illness Recovery Hospital segment. However, the downside was partially offset by solid revenue growth in the Rehabilitation Hospital segment, driven by higher admissions and improved occupancy. Select Medical Holdings Corporation price-consensus-eps-surprise-chart | Select Medical Holdings Corporation Quote Total costs and expenses were $1.3 billion, which increased 6.7% year over year and came higher than our estimate by 1.4%. The year-over-year rise was due to higher costs of services, exclusive of depreciation and amortization, and general and administrative expenses. Adjusted EBITDA declined 6.5% year over year to $141.6 million but beat our estimate of $141.1 million. The segment recorded revenues of $638.8 million in the first quarter, which grew 0.3% year over year, but missed the Zacks Consensus Estimate and our estimate of $671.3 million. The unit benefited on the back of a 1% year-over-year increase in admissions and a 2.5% rise in revenue per patient day. Patient days slipped 2.2% year over year. The occupancy rate deteriorated 140 bps year over year to 72%. Adjusted EBITDA declined 15.3% year over year to $73.4 million and fell short of the consensus mark and our estimate of $88.7 million. The adjusted EBITDA margin of 11.5% deteriorated 210 bps year over year. SEM’s Rehabilitation Hospital segment remained the primary growth engine. The unit’s revenues rose 14.5% year over year to $351.9 million, which surpassed the Zacks Consensus Estimate and our estimate of $320.8 million. The favorable performance stemmed from year-over-year increases of 13% and 12.5%, respectively, in admissions and patient days. The occupancy rate was 83%, which improved 120 bps year over year in the quarter under review. Adjusted EBITDA improved 15.1% year over year to $81.1 million, which beat the consensus mark and our estimate of $69.4 million. The adjusted EBITDA margin of 23% improved 10 bps year over...

Select Medical agreed to be taken private for $16.50 per share by a consortium led by Robert Ortenzio, with closing expected in mid-2026 and contingent financing that would add a $1 billion term loan at SOFR+3%. Q1 showed revenue growth but margin pressure: total revenue rose 5% year-over-year while adjusted EBITDA fell 6.5% to $141.6 million and EPS declined to $0.35; the board approved a $0.0625 per-share cash dividend. Management is emphasizing inpatient rehab expansion—adding 166 beds YTD and planning 275 more beds through 2027—while maintaining 2026 guidance of $5.6–5.8 billion revenue and $520–540 million adjusted EBITDA despite ending the quarter with $1.9 billion of total debt. Interested in Select Medical Holdings Corporation? Here are five stocks we like better. Select Medical (NYSE:SEM) reported first-quarter 2026 results that showed revenue growth across all three operating divisions, while consolidated profitability declined year over year. Management also provided an update on the company’s previously announced take-private agreement and outlined ongoing inpatient rehabilitation development projects. Chief Executive Officer Thomas Mullin opened the call by revisiting the company’s March 2 announcement that Select Medical entered into an agreement to be acquired by a consortium led by Executive Chairman Robert Ortenzio, together with Martin Jackson and Welsh, Carson, Anderson & Stowe. Under the terms discussed on the call, unaffiliated shareholders would receive $16.50 per share in cash. → Meta Posted Its Best Sales Growth Since 2021—So Why Did Shares Fall? Mullin said the transaction was unanimously approved by the disinterested members of the board and is expected to close in mid-2026, subject to regulatory approvals, shareholder approval, and other customary conditions. He added that the Hart-Scott-Rodino waiting period expired on April 27, satisfying one of the closing conditions. In connection with and contingent upon completion of the transaction, Mullin said the company’s senior secured credit facilities would provide for an additional $1 billion of term loan borrowings at SOFR plus 3%. → 5 Stocks to Buy in May Before the Next AI Surge Hits Mullin said the company continues to focus development activity on expanding its inpatient rehabilitation business. Year to date, Select Medical added 166 beds across three newly opened inpatient rehab...

This article first appeared on GuruFocus. Total Revenue Growth: Increased by 5% overall. Adjusted EBITDA: Declined 6.5% to $141.6 million from $151.4 million in the prior year period. Earnings Per Share (EPS): $0.35 compared to $0.44 in the prior year; adjusted EPS was $0.36. Inpatient Rehab Hospital Revenue: Increased more than 14% to approximately $351.9 million. Inpatient Rehab Hospital Adjusted EBITDA: Increased 15% to $81.1 million. Critical Illness Recovery Hospital Revenue: Increased to $638.8 million from $637 million. Critical Illness Recovery Hospital Adjusted EBITDA: Declined 15% to $73.4 million from $86.6 million. Outpatient Rehabilitation Revenue: Grew more than 4% to $321.3 million from $307.3 million. Outpatient Rehabilitation Adjusted EBITDA: $22 million compared to $24.3 million last year. Total Debt: $1.9 billion at the end of the quarter. Cash on Balance Sheet: $25.7 million. Cash Flow from Operating Activities: $37.9 million. Capital Expenditures: $58.9 million for property and equipment purchases. Full-Year 2026 Revenue Guidance: Expected to range between $5.6 billion and $5.8 billion. Full-Year 2026 Adjusted EBITDA Guidance: Expected between $520 million and $540 million. Full-Year 2026 EPS Guidance: Expected to be in the range of $1.22 to $1.32. Full-Year 2026 Capital Expenditures Guidance: Expected to range between $200 million and $220 million. Warning! GuruFocus has detected 7 Warning Signs with SEM. Is SEM fairly valued? Test your thesis with our free DCF calculator. Release Date: May 01, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Select Medical Holdings Corp (NYSE:SEM) announced a take-private transaction, offering unaffiliated shareholders $16.50 per share in cash, which was unanimously approved by the Board. The company expanded its Inpatient Rehabilitation business by adding 166 beds across three newly opened hospitals, with plans to add 275 more beds by the end of 2027. Revenue growth was observed across all three operating divisions, with total revenue increasing by 5% compared to the prior year period. The Inpatient Rehab Hospital division saw a 14% increase in revenue year over year, with adjusted EBITDA increasing by 15%. The Outpatient Rehabilitation division delivered revenue growth of more than 4%, driven by over 4% growth in patient visits. Adjusted EBITDA...

Image source: The Motley Fool. May 1, 2026, 9 a.m. ET Chief Executive Officer — Thomas Mullen Chief Financial Officer — Michael Malatesta Thomas Mullen: Thank you, operator, and good morning, everyone. Welcome to Select Medical Holdings Corporation's earnings call for 2026. I would like to begin today's call with a brief update on our previously announced take-private transaction. On March 2, 2026, we announced that Select Medical Holdings Corporation entered into an agreement to be acquired by a consortium led by our Executive Chairman, Robert Ortenzio, together with Martin Jackson and Welsh, Carson, Anderson & Stowe. Under the terms of the agreement, unaffiliated shareholders will receive $16.50 per share in cash. The transaction was unanimously approved by the members of the Board of Directors, and we expect it to close in mid-2026, subject to regulatory approvals, shareholder approval, and other customary closing conditions. As part of the regulatory review process, the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act expired on April 27, 2026, satisfying one of these conditions. Upon closing, Select Medical Holdings Corporation will become a privately held company. In connection with and contingent upon the completion of the transaction, our senior secured credit facilities will provide for an additional $1 billion of term loan borrowings bearing interest at a rate equal to SOFR plus 3%. With that update, I will now turn to our development activity, where we continue to focus on expanding our inpatient rehabilitation business. So far this year, we have added 166 beds across three newly opened inpatient rehabilitation hospitals, including our fifth hospital with Baylor Scott & White in Temple, Texas; a new hospital with CoxHealth in Ozark, Missouri; and the fourth hospital in our Banner Health joint venture in Tucson, Arizona. Across the remainder of 2026 and into 2027, we expect to add 275 more beds: 209 in IRF and 66 in critical illness, through a combination of new hospitals, acute rehab units, neurotransitional units, and expansions. Later this year during the third quarter, we plan to open a 60-bed hospital with AtlantiCare in Southern New Jersey, along with two acute rehab units in Florida and two neurotransitional units scheduled for the second and third quarters of this year. Early in 2027, we are expanding one of our Banner...

MECHANICSBURG, Pa. (AP) — MECHANICSBURG, Pa. (AP) — Select Medical Holdings Corp. (SEM) on Thursday reported first-quarter profit of $44 million. On a per-share basis, the Mechanicsburg, Pennsylvania-based company said it had net income of 35 cents. Earnings, adjusted for non-recurring costs, came to 36 cents per share. The results did not meet Wall Street expectations. The average estimate of three analysts surveyed by Zacks Investment Research was for earnings of 43 cents per share. The hospital and rehabilitation center operator posted revenue of $1.42 billion in the period. Select Medical expects full-year earnings in the range of $1.22 to $1.32 per share, with revenue in the range of $5.6 billion to $5.8 billion. _____ This story was generated by Automated Insights (http://automatedinsights.com/ap) using data from Zacks Investment Research. Access a Zacks stock report on SEM at https://www.zacks.com/ap/SEM

Select Medical Holdings (SEM) reported Q1 adjusted earnings late Thursday of $0.36 per diluted share

Performance was characterized by 5% consolidated revenue growth, though adjusted EBITDA declined 6.5% due to transaction costs and specific segment headwinds. The Inpatient Rehabilitation division served as a primary growth engine, with revenue increasing 14% driven by a 12% rise in average daily census and improved same-store occupancy of 87%. Critical Illness Recovery Hospital (CIRH) margins were pressured by a decline in Medicare Advantage conversion rates, which management estimated had a $13 million to $14 million year-over-year impact. Outpatient Rehabilitation results included a $1 million drag from strategic market exits, specifically the closure of four clinics in Oregon as part of a broader productivity assessment. Management is pivoting its lobbying focus toward expanding LTACH criteria to include patients currently excluded by decade-old standards, citing evidence that high-cost outlier trends are stabilizing. Operational improvements in the outpatient segment are focused on schedule optimization and consolidating underperforming single-clinician sites into larger, multi-clinician hubs. The company is maintaining its full-year 2026 guidance, assuming revenue between $5.6 billion and $5.8 billion and adjusted EBITDA between $520 million and $540 million. A robust expansion plan is underway to add 275 beds through 2027, with a heavy concentration in Inpatient Rehabilitation (209 beds) and Critical Illness (66 beds). The take-private transaction led by the Executive Chairman is expected to close in mid-2026, contingent upon shareholder approval and a $1 billion increase in term loan borrowings. Financial projections for 2027 assume a 2.6% increase in the IRF standard federal payment rate and a 2.66% increase for LTACH, based on current CMS proposed rules. Capital expenditure for the remainder of 2026 is forecasted between $200 million and $220 million to support the development of new joint venture hospitals and specialized units. The expiration of the Hart-Scott-Rodino waiting period on April 27, 2026, satisfies a key regulatory condition for the pending take-private acquisition. The proposed $16.50 per share cash offer for unaffiliated shareholders was unanimously approved by the Board of Directors. Management highlighted that the proposed high-cost outlier threshold of $78,936 for fiscal year 2027 suggests CMS is achieving its intended regulatory...

Shareholders appeared unconcerned with 7-Eleven Malaysia Holdings Berhad's (KLSE:SEM) lackluster earnings report last week. We think that the softer headline numbers might be getting counterbalanced by some positive underlying factors. We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free. One key financial ratio used to measure how well a company converts its profit to free cash flow (FCF) is the accrual ratio. To get the accrual ratio we first subtract FCF from profit for a period, and then divide that number by the average operating assets for the period. This ratio tells us how much of a company's profit is not backed by free cashflow. Therefore, it's actually considered a good thing when a company has a negative accrual ratio, but a bad thing if its accrual ratio is positive. While it's not a problem to have a positive accrual ratio, indicating a certain level of non-cash profits, a high accrual ratio is arguably a bad thing, because it indicates paper profits are not matched by cash flow. That's because some academic studies have suggested that high accruals ratios tend to lead to lower profit or less profit growth. Over the twelve months to December 2025, 7-Eleven Malaysia Holdings Berhad recorded an accrual ratio of -0.18. That indicates that its free cash flow quite significantly exceeded its statutory profit. In fact, it had free cash flow of RM144m in the last year, which was a lot more than its statutory profit of RM30.8m. Given that 7-Eleven Malaysia Holdings Berhad had negative free cash flow in the prior corresponding period, the trailing twelve month resul of RM144m would seem to be a step in the right direction. That might leave you wondering what analysts are forecasting in terms of future profitability. Luckily, you can click here to see an interactive graph depicting future profitability, based on their estimates. As we discussed above, 7-Eleven Malaysia Holdings Berhad's accrual ratio indicates strong conversion of profit to free cash flow, which is a positive for the company. Based on this observation, we consider it possible that 7-Eleven Malaysia Holdings Berhad's statutory profit actually understates its earnings potential! On the other hand, its EPS actually shrunk in the last twelve months. Of course, we've only just scratched the surface when it comes to analysing its e...

Select Medical (SEM) came out with quarterly earnings of $0.36 per share, missing the Zacks Consensus Estimate of $0.43 per share. This compares to earnings of $0.44 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -15.91%. A quarter ago, it was expected that this hospital and rehabilitation center operator would post earnings of $0.23 per share when it actually produced earnings of $0.16, delivering a surprise of -30.43%. Over the last four quarters, the company has surpassed consensus EPS estimates two times. Select Medical, which belongs to the Zacks Medical - HMOs industry, posted revenues of $1.42 billion for the quarter ended March 2026, surpassing the Zacks Consensus Estimate by 1.54%. This compares to year-ago revenues of $1.35 billion. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Select Medical shares have added about 11% since the beginning of the year versus the S&P 500's gain of 4.2%. While Select Medical has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Select Medical was unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #4 (Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of...

MECHANICSBURG, Pa., April 30, 2026 /PRNewswire/ -- Select Medical Holdings Corporation ("Select Medical," "we," "us," or "our") (NYSE: SEM) today announced results for its first quarter ended March 31, 2026, and the declaration of a cash dividend. For the first quarter ended March 31, 2026, revenue increased 5.0% to $1,421.5 million, compared to $1,353.2 million for the same quarter, prior year. Income from operations was $98.4 million for the first quarter ended March 31, 2026, compared to $112.7 million for the same quarter, prior year. Net income was $63.8 million for the first quarter ended March 31, 2026, compared to $74.7 million for the same quarter, prior year. Adjusted EBITDA was $141.6 million for the first quarter ended March 31, 2026, compared to $151.4 million for the same quarter, prior year. Earnings per common share was $0.35 for the first quarter ended March 31, 2026, compared to $0.44 for the same quarter, prior year. Adjusted earnings per common share was $0.36 for the first quarter ended March 31, 2026, compared to $0.44 for the same quarter, prior year. The definition of Adjusted EBITDA and a reconciliation of net income to Adjusted EBITDA are presented in table VI of this release. A reconciliation of earnings per common share to adjusted earnings per common share is presented in table VII of this release. On March 2, 2026, the Company entered into an agreement and plan of merger with wholly owned subsidiaries of WCAS XIV, L.P., an investment fund affiliated with Welsh, Carson, Anderson & Stowe and a member of a consortium led by Robert A. Ortenzio, our Executive Chairman, Co-Founder and Director and Martin F. Jackson, our Senior Executive Vice President of Strategic Finance and Operations, pursuant to which, subject to the terms and conditions of the merger agreement, a wholly-owned subsidiary of the buyer will merge with and into the Company, with the Company surviving as a wholly-owned subsidiary of the buyer (the "Merger"). Upon completion of the Merger, each issued and outstanding share of Company common stock (subject to certain exceptions) will be converted into the right to receive $16.50 per share in cash, without interest. Immediately prior to the Merger, each share of common stock that is subject to forfeiture conditions (other than any Rollover Shares as defined in the merger agreement) will vest in full and be treated the sa...