Surgery Partners (NASDAQ:SGRY) Posts Earnings Results, Beats Estimates By $0.12 EPS

Surgery Partners (NASDAQ:SGRY) announced its quarterly earnings results on Tuesday. The company reported ($0.03) earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of ($0.15) by $0.12, FiscalAI reports. Surgery Partners had a positive return on equity of 1.04% and a negative net margin of 2.28%.The business had revenue of $810.90 million for the quarter, compared to the consensus estimate of $797.69 million. During the same period last year, the business posted $0.04 EPS. The business’s revenue was up 4.5% compared to the same quarter last year.

Here are the key takeaways from Surgery Partners’ conference call:

• First-quarter results were broadly in line or modestly ahead of expectations with ~$811 million of net revenue, 4.4% same?facility revenue growth and ~$102 million of adjusted EBITDA, and the company reiterated full?year revenue and adjusted EBITDA guidance.
• Organic growth drivers showed strength—total joints in ASCs grew 14.6% year?over?year, the platform has 73 surgical robots supporting higher?acuity work, ~140 physicians were recruited in Q1, and de novo development remains an active, MSK?focused growth channel.
• Margins faced identifiable headwinds from reinstated incentive compensation, new provider taxes and tariff pressures (management estimates ~$8 million of combined FY pressure), plus higher interest expense (~$7 million) due to an expired interest rate swap, weighing on near?term EBITDA.
• Capital deployment was modest in Q1 (~$4 million), but the company expects ~$200 million of annual deployment when active, is pursuing portfolio optimization (in advanced talks on a larger surgical hospital market with a possible mid?2026 announcement) and remains focused on gradual deleveraging (net leverage ~4.3x under the credit agreement).

Surgery Partners Stock Down 1.2%

SGRY stock traded down $0.18 on Thursday, hitting $14.41. 903,144 shares of the company’s stock were exchanged, compared to its average volume of 1,568,872. Surgery Partners has a 12-month low of $11.41 and a 12-month high of $24.18. The firm has a 50 day moving average price of $13.34 and a two-hundred day moving average price of $15.55. The company has a debt-to-equity ratio of 1.15, a quick ratio of 1.71 and a current ratio of 1.87. The stock has a market cap of $1.89 billion, a P/E ratio of -24.02 and a beta of 1.99.

Wall Street Analysts Forecast Growth

A number of research analysts have recently issued reports on SGRY shares. Cantor Fitzgerald reiterated an “overweight” rating on shares of Surgery Partners in a report on Wednesday, March 4th. Royal Bank Of Canada cut their price target on Surgery Partners from $31.00 to $20.00 and set an “outperform” rating on the stock in a report on Wednesday, March 4th. US Capital Advisors set a $21.00 price target on Surgery Partners in a report on Wednesday, March 11th. Zacks Research downgraded Surgery Partners from a “hold” rating to a “strong sell” rating in a report on Tuesday, April 7th. Finally, TD Cowen cut their price target on Surgery Partners from $28.00 to $20.00 and set a “buy” rating on the stock in a report on Thursday, March 5th. Eight research analysts have rated the stock with a Buy rating, two have issued a Hold rating and two have assigned a Sell rating to the company. According to data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and a consensus price target of $22.18.

Insider Buying and Selling at Surgery Partners

In other Surgery Partners news, CFO David T. Doherty sold 8,867 shares of the business’s stock in a transaction dated Monday, March 16th. The stock was sold at an average price of $12.50, for a total transaction of $110,837.50. Following the sale, the chief financial officer owned 221,679 shares in the company, valued at approximately $2,770,987.50. The trade was a 3.85% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, insider Marissa Brittenham sold 3,657 shares of the business’s stock in a transaction dated Friday, March 13th. The shares were sold at an average price of $12.54, for a total value of $45,858.78. Following the sale, the insider owned 94,196 shares in the company, valued at approximately $1,181,217.84. The trade was a 3.74% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last quarter, insiders have sold 96,896 shares of company stock worth $1,284,058. 2.70% of the stock is owned by corporate insiders.

Institutional Trading of Surgery Partners

Several large investors have recently added to or reduced their stakes in the company. Empowered Funds LLC grew its stake in Surgery Partners by 1,340.9% during the 4th quarter. Empowered Funds LLC now owns 161,419 shares of the company’s stock valued at $2,494,000 after purchasing an additional 150,216 shares during the last quarter. One68 Global Capital LLC purchased a new stake in Surgery Partners during the 4th quarter valued at about $371,000. Man Group plc purchased a new stake in Surgery Partners during the 4th quarter valued at about $5,080,000. Inspire Investing LLC grew its stake in Surgery Partners by 45.4% during the 4th quarter. Inspire Investing LLC now owns 30,073 shares of the company’s stock valued at $465,000 after purchasing an additional 9,384 shares during the last quarter. Finally, Janus Henderson Group PLC grew its stake in Surgery Partners by 3.8% during the 4th quarter. Janus Henderson Group PLC now owns 13,537,984 shares of the company’s stock valued at $209,162,000 after purchasing an additional 501,401 shares during the last quarter.

Surgery Partners declared that its Board of Directors has authorized a stock buyback program on Thursday, February 26th that allows the company to buyback $200.00 million in outstanding shares. This buyback authorization allows the company to purchase up to 9.7% of its stock through open market purchases. Stock buyback programs are generally an indication that the company’s board of directors believes its shares are undervalued.

About Surgery Partners

Surgery Partners, Inc operates as a healthcare services provider specializing in the management and ownership of ambulatory surgery centers, surgical hospitals and multispecialty rehabilitation hospitals across the United States. Through its network of facilities, the company coordinates and delivers a broad range of outpatient surgical procedures in specialties such as orthopedics, ophthalmology, otolaryngology, gastroenterology, pain management and general surgery. Its integrated platform offers ancillary services including on-site imaging, laboratory testing, infusion therapy and physical, occupational and speech rehabilitation.

Since its establishment in 2010 and subsequent public listing in 2015, Surgery Partners has focused on strategic partnerships with physicians and health systems to expand access to cost-effective outpatient care.