Surgery Partners Inc Q3 revenue misses estimates

By Reuters News


Overview

  • U.S. surgical facility operator's Q3 revenue fell 0.8%, missing analyst expectations

  • Adjusted EPS for Q3 beat analyst expectations

  • Company amended merger deal with HealthSpan Partners, raising cash consideration and adding ticking fee


Outlook

  • Surgery Partners will no longer provide forward-looking guidance due to pending merger with HealthSpan Partners


Result Drivers

  • SAME-FACILITY GROWTH - Co said higher same-facility revenues were driven by increased revenue per case and a slight rise in case volume

  • DIVESTITURE IMPACT - Q3 results include the impact of the Idaho Falls facilities divestiture, which reduced reported revenue

  • TRANSACTION COSTS - Higher transaction and integration costs, including M&A expenses and severance, affected quarterly results


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Revenue

Miss

$815.30 mln

$825.65 mln (8 Analysts)

Q3 Adjusted EPS

Beat

$0.16

$0.12 (8 Analysts)

Q3 Adjusted EBITDA

Miss

$132.70 mln

$136.25 mln (8 Analysts)

Q3 Adjusted EBITDA Margin

16.30%

Q3 Operating Income

$85.60 mln

Q3 Pretax Profit

$17.70 mln


Analyst Coverage

  • The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 7 "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the healthcare facilities & services peer group is "buy."

  • Wall Street's median 12-month price target for Surgery Partners, Inc. is $23.50, about 1.3% above its November 6 closing price of $23.20

  • The stock recently traded at 50 times the next 12-month earnings vs. a P/E of 28 three months ago


Reuters Recommended Reads

  • Nov 9 - Bon Secours affiliate sweetens bid for Surgery Partners to up to $6 billion


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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