Surgery Partners CS Up 13.83% To $28.24 After Earnings Beat

Tuesday, November 7, 2023 - Surgery Partners CS (SGRY) reported upside earnings and revenues today.

Surgery Partners CS's earnings came in at an EPS of $0.19 per share, 19.00% higher than estimates for an EPS of $0.16 per share. The firm's earnings are up 1050% since reporting losses of $0.02 per share in the same period a year ago. Remember, earnings reported were on an adjusted basis, so they may not be comparable to prior reports and/or analyst estimates.

Consensus analyst estimates were at $672.3 million. The Healthcare company managed to surpass those expectations for its third quarter with revenue of $674.1 million, a positive revenue surprise of $1.8 million (0%). The firm managed 9% growth year-over-year due to Surgery Partners CS reporting quarterly revenue of $620.6 million in its year-ago quarter. Surgery Partners CS achieved a higher earnings growth rate than revenue, signaling that the business has improved its profit margin.

The stock is up 13.83% to $28.24 after the report.

The firm's lower revenue growth to earnings signals that the firm has been able to reduce costs and improve its profit margin overall.

Wall Street Analysts had an average rating of Strong Buy on the stock prior to the report.

Trading in the five days leading up to the report earned Surgery Partners CS a Bullish Sentiment Rank from InvestorsObserver.

Surgery Partners CS has performed poorly during the past few months, garnering a low Long-Term Technical Rank by InvestorsObserver of 20, putting Surgery Partners CS in the bottom 25% of stocks. The firm set a 52-week high on June 30, 2023 at $45.79 and set a 52-week low on November 9, 2022 at $22.03.

Surgery Partners Inc is one of the few remaining independent ambulatory surgery center operators in the U.S. with national scale. The firm operates surgical facilities in approximately 30 states in partnership with physician groups and larger local healthcare systems. While surgical procedures drive a majority of the firm's revenue, the company also operates a clinical lab, urgent care facilities, and a handful of physician practices to provide additional healthcare services within the communities it serves. It operates in two segments: Surgical Facility Services and Ancillary Services out of which the Surgical Facility Services segment accounts for the majority of revenue.