Shares of Select Medical ( NYSE: SEM ) slumped 20.8% to $18.80 after the opening bell on Friday, as the company posted a big miss on Q3 profit and a rise in total costs and expenses.
The stock continues a recent weak run which has seen it clock a two-day losing streak .
SEM after hours on Thursday reported Q3 GAAP EPS of $0.21 which missed estimates by $0.24 . Revenue rose 2.6% Y/Y to $1.57B, which beat expectations by $10M .
Mechanicsburg, Pa.-based SEM runs post-acute care hospitals and outpatient physical therapy centers. As of Sept. 30, the company operated 105 critical illness recovery hospitals, 31 rehabilitation hospitals and ~1.9K outpatient rehabilitation clinics.
SEM's total costs and expenses for the quarter rose 7.1% Y/Y to $1.48B, which weighed on profit and led to a 63.2% Y/Y fall in EPS.
Key quarterly metrics such as patient admissions, revenue per patient day and occupancy rate fell Y/Y.
SEM also kept its FY 2022 revenue guidance of $6.25B to $6.40B unchanged. The consensus revenue estimate is $6.34B.
The company's board authorized a stock buyback program of up to $1B.
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Select Medical sinks ~21% after rise in costs and expenses leads to big Q3 profit miss