Surgery Partners (NASDAQ:SGRY) Posts Quarterly Earnings Results, Beats Expectations By $0.05 EPS

Key Points

• Adjusted EPS beat estimates: Surgery Partners reported $0.16 per share, topping the $0.11 consensus by $0.05.
• Revenue and profitability were weaker: Revenue of $815.3 million came in below expectations of $821.0 million, and the company reported a $21.1 million net loss attributable to common shareholders as higher costs pressured margins.
• Deal activity drew investor attention but carries uncertainty: Reports of bids involving Surgery Partners and its proposed HealthSpan buyout coincided with increased interest, while a law firm’s investigation into the pending merger adds legal and execution risk.

Surgery Partners (NASDAQ:SGRY - Get Free Report) issued its quarterly earnings results on Monday. The company reported $0.16 earnings per share for the quarter, beating the consensus estimate of $0.11 by $0.05, FiscalAI reports. Surgery Partners had a positive return on equity of 0.88% and a negative net margin of 2.63%. The company had revenue of $815.30 million during the quarter, compared to analysts' expectations of $820.96 million.

Surgery Partners Price Performance

NASDAQ:SGRY traded up $3.25 during trading hours on Monday, hitting $26.45. The stock had a trading volume of 17,054,489 shares, compared to its average volume of 2,229,558. Surgery Partners has a one year low of $11.41 and a one year high of $27.23. The company has a debt-to-equity ratio of 1.18, a current ratio of 1.95 and a quick ratio of 1.78. The firm has a market capitalization of $3.46 billion, a price-to-earnings ratio of -37.79 and a beta of 1.85. The company has a 50 day simple moving average of $16.04 and a two-hundred day simple moving average of $14.83.

Analysts Set New Price Targets

Several equities analysts have recently weighed in on SGRY shares. TD Cowen lowered shares of Surgery Partners from a "strong-buy" rating to a "hold" rating in a report on Saturday, October 31st. JPMorgan Chase & Co. boosted their price target on shares of Surgery Partners from $14.00 to $15.00 and gave the stock a "neutral" rating in a report on Monday, September 14th. Royal Bank Of Canada downgraded Surgery Partners from a "moderate buy" rating to a "hold" rating and set a $23.50 target price on the stock. in a research note on Monday, October 26th. Benchmark reissued a "buy" rating on shares of Surgery Partners in a research report on Tuesday, August 11th. Finally, Raymond James Financial set a $23.50 target price on Surgery Partners in a research note on Monday, October 26th. Three investment analysts have rated the stock with a Buy rating, eight have given a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, the company presently has a consensus rating of "Hold" and a consensus target price of $20.14.

Insider Transactions at Surgery Partners

In other news, Director Teresa DeLuca purchased 10,000 shares of the stock in a transaction on Tuesday, August 18th. The shares were acquired at an average price of $14.35 per share, for a total transaction of $143,500.00. Following the completion of the transaction, the director directly owned 66,843 shares of the company's stock, valued at approximately $959,197.05. This trade represents a 17.59% increase in their position. The acquisition was disclosed in a filing with the SEC, which is available through this link. Company insiders own 2.00% of the company's stock.

More Surgery Partners News

Here are the key news stories impacting Surgery Partners this week:

• Positive Sentiment: Deal activity lifted investor interest. Reports said a Bon Secours affiliate sweetened its bid for Surgery Partners, while Surgery Partners separately raised its proposed buyout price for HealthSpan to $25 per share. Bon Secours affiliate sweetens bid for Surgery Partners Surgery Partners boosts HealthSpan buyout offer
• Positive Sentiment: Adjusted earnings beat expectations. Q3 adjusted EPS was $0.16, versus analysts’ $0.11 consensus. Operating cash flow also improved to $103.5 million, and cash and equivalents rose to $354.5 million. Q3 adjusted EPS report
• Negative Sentiment: Underlying results were weaker. Revenue of $815.3 million fell short of estimates, while gross and operating profit declined. Surgery Partners reported a $21.1 million net loss attributable to common shareholders, with higher costs pressuring margins. Surgery Partners Q3 results
• Negative Sentiment: A law firm announced an investigation into the pending merger, adding some legal and execution uncertainty for shareholders. Merger investigation announcement

Surgery Partners Company Profile

Surgery Partners, Inc is a U.S. healthcare services company that owns and operates ambulatory surgery centers and surgical hospitals. Its facilities provide outpatient and inpatient surgical care across a range of specialties.

The company's services include surgical procedures and related care delivered in partnership with physicians and healthcare professionals. Its network serves patients in multiple states across the United States.

Founded in 2004, Surgery Partners has expanded its network through acquisitions and partnerships with physicians and health systems.

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