Select Medical Holdings Corporation

Select Medical delivered a standout third quarter, with earnings per share of $0.23 beating the $0.1547 consensus estimate by 48.67% — a margin that signals genuine operational momentum rather than a one-time lift. Revenue came in at $1.36 billion, clearing estimates by 2.53%, though the top line reflects a 22.6% year-over-year decline as the company laps results that previously included Concentra, now spun off as a separate entity following a tax-free distribution in November 2024. The cleaner, more focused post-acute and rehabilitation business showed real underlying strength: rehabilitation hospitals were the standout, with revenue climbing 16.2% to $328.61 million on 11.2% higher admissions and an occupancy rate of 83%, while the critical illness recovery segment expanded margins to 9.2% from 8.7% despite modest volume softness. Outpatient rehabilitation did face cost pressure, with Adjusted EBITDA margins narrowing to 7.4% from 9.1%. Looking ahead, management raised its full-year EPS guidance to $1.14–$1.24 while reaffirming revenue of $5.30 billion–$5.50 billion, underscoring confidence in the company's post-separation trajectory.