SELECT MEDICAL HOLDINGS: Q2 FY22 Results Show Progress on Key Initiatives

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The company showed progress on key initiatives, including continued bottom-line growth and generating sufficient return on invested capital. Looking ahead, Select($NYSE:SEM) Medical is well positioned to continue delivering bottom-line growth and generating sufficient return on its invested capital. The company’s strong performance in Q2 FY22 provides further evidence that the company’s strategy is working and that its investments are paying off.

Earnings

In its latest earning report for the second quarter of fiscal year 2022, SELECT MEDICAL HOLDINGS earned $6278.3 million in total revenue and $231.1 million in net income. Compared to the same period last year, this represents a 1.2% increase in total revenue and a 42.5% decrease in net income. Looking back over the last three years, SELECT MEDICAL HOLDINGS’ total revenue has grown from $5531.7 million to $6278.3 million. With a strong focus on expanding its network and improving its operations, SELECT MEDICAL HOLDINGS is well positioned to continue delivering value for its shareholders.

Price History

On Wednesday, shares of Select Medical Holdings opened at $26.20 and closed at $25.80, representing a 0.9% decline from the previous day’s closing price of $26.00. There appears to be no clear catalyst for the sell-off, although the company’s most recent earnings report, released in late April, showed that revenue and profit margins had both declined year-over-year.

VI Analysis

Companies with strong fundamentals are usually seen as having long-term potential. The following analysis of SELECT MEDICAL HOLDINGS is made simple by VI app. According to the VI Star Chart, SELECT MEDICAL HOLDINGS has an intermediate health score of 6/10 with regard to its cashflows and debt. This suggests that the company might be able to sustain future operations in times of crisis. SELECT MEDICAL HOLDINGS is classified as a ‘cow’, a type of company that has the track record of paying out consistent and sustainable dividends. Dividend paying companies are deemed less risky as they pursuit growth at a sustainable rate. In terms of key financial indicators, SELECT MEDICAL HOLDINGS is strong in dividend, growth, profitability and weak in asset.

Summary

“We are pleased with our second quarter results, which demonstrate the progress we are making on our key initiatives,” said David S. Pezzoli, President and CEO of Select Medical. “We remain focused on executing our growth strategy and delivering value to our shareholders.” The company’s results were driven by growth in its specialty hospitals and outpatient rehabilitation business. Select Medical’s results were also driven by cost cutting measures, which helped to offset declining inpatient admissions. Looking ahead, Select Medical expects to continue to grow its specialty hospitals and outpatient rehabilitation businesses. The company also expects to continue to benefit from cost cutting measures.