Select Medical (SEM) shares plummeted 9.59% in pre-market trading on Friday following the release of its first-quarter earnings report, which fell short of analyst expectations and included a reduction in annual revenue guidance.

The healthcare company reported earnings from continuing operations of $0.44 per diluted share for Q1, up from $0.33 a year earlier but below the $0.46 anticipated by analysts polled by FactSet. Revenue for the quarter ended March 31 came in at $1.35 billion, missing the $1.39 billion forecast and only slightly higher than the $1.32 billion reported in the same period last year.

Adding to investor concerns, Select Medical trimmed its 2025 revenue guidance to a range of $5.3 billion to $5.5 billion, down from its previous forecast of $5.4 billion to $5.6 billion. This adjustment puts the company's outlook below the $5.46 billion expected by analysts. Despite the revenue guidance cut, Select Medical reaffirmed its 2025 earnings forecast of $1.09 to $1.19 per diluted share, in line with analyst expectations of $1.12.