Select Medical Holdings Corporation SEM delivered third-quarter 2020 earnings of 56 cents per share, beating the Zacks Consensus Estimate of 30 cents by 86.7%. Moreover, the bottom line soared 69.7% year over year on the back of improved revenues.Additionally, net operating revenues inched up 2.2% year over year to $1.42 billion owing to solid performances by its Critical Illness Recovery and Rehabilitation Hospital segments. Further, the top line surpassed the Zacks Consensus Estimate by 5.2%.Total costs and expenses dipped 0.3% to $1.2 billion on lower cost of services.Adjusted EBITDA increased 16.7% year over year to $213.2 million.Select Medical Holdings Corporation Price, Consensus and EPS Surprise Select Medical Holdings Corporation price-consensus-eps-surprise-chart | Select Medical Holdings Corporation QuoteCritical Illness Recovery HospitalOperating revenues climbed 12.2% to $519.5 million, courtesy of better patient days.Adjusted EBITDA for the segment jumped 55.2% to $88.8 million.Rehabilitation Hospital SegmentOperating revenues ascended 8.5% to $188.1 million, led by expanded patient days. Adjusted EBITDA was up 21.4% to $44.6 million.Outpatient RehabilitationOperating revenues plunged 95.4% to $240.0 million in the third quarter due to less patient visit volume and suspension of elective surgeries.Adjusted EBITDA of $30.6 million came against the year-ago quarter’s adjusted EBITDA of $40 million.ConcentraOperating revenues were down 7.1% year over year to $391.9 million due to a dip in the number of visits.Adjusted EBITDA increased 3.7% to $80.5 million.Balance Sheet PositionAt the end of the third quarter, the company had $3.3 billion of long-term debt, net of current portion, down 0.8% from the level at 2019 end.Total equity of $1218 million surged 31.2% from the level on Dec 31, 2019.Total cash and cash equivalents of $639.8 million were up 90.5% from the level as of Dec 31, 2019.Cash flow provided by operating activities as of Sep 30, 2020 was $820 million compared with $266 million in the year-ago period.Share Repurchase UpdateSelect Medical did not buy back shares in the third quarter.2020 OutlookSelect Medical updated its full-year guidance after third-quarter results. The company now expects net operating revenues in the range of $5.44-$5.5 billion for the current year.Adjusted EBITDA is expected in the band of $745-$765 million.The company also estimates annual adjusted earnings per share within $1.61-$1.71. This excludes the gains on sales of businesses and the related tax effects.Zacks RankSelect Medical currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Other Medical Sector ReleasesOf the medical sector players that reported second-quarter results so far, earnings of Universal Health Services, Inc. UHS and UnitedHealth Group Incorporated UNH ) beat the respective Zacks Consensus Estimate while that of HCA Healthcare, Inc. HCA missed the same.The Hottest Tech Mega-Trend of AllLast year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.See Zacks' 3 Best Stocks to Play This Trend >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report UnitedHealth Group Incorporated (UNH): Free Stock Analysis Report Universal Health Services, Inc. (UHS): Free Stock Analysis Report HCA Healthcare, Inc. (HCA): Free Stock Analysis Report Select Medical Holdings Corporation (SEM): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research