Surgery Partners Inc Q3 revenue misses estimates

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

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

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(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.)