Surgery Partners beats Q2 revenue estimates, reaffirms guidance

Overview

• Surgery Partners Q2 revenue rises 8.4%, beating analysts' expectations, per LSEG data

• Adjusted EPS for Q2 beats consensus

• Adjusted EBITDA for Q2 grows 9% and exceeds analysts' estimates

Outlook

• Surgery Partners reaffirms 2025 revenue guidance of $3.30 bln to $3.45 bln

• Company expects 2025 Adjusted EBITDA between $555 mln and $565 mln

• Company optimistic on surgical trends and regulatory landscape

• Surgery Partners focuses on portfolio optimization for leverage reduction

Result Drivers

• OPERATIONAL STRATEGY - Co attributes revenue growth to strong operational strategy and momentum in ambulatory surgery industry, per CEO Eric Evans

• SAME-FACILITY PERFORMANCE - Increase in same-facility revenues and cases contributed to overall revenue growth

• ACQUISITION BENEFITS - Integration benefits from recent acquisitions supported margin expansion, per CFO Dave Doherty

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 10 "strong buy" or "buy", 3 "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 $33.00, about 32.7% above its August 4 closing price of $22.22

• The stock recently traded at 22 times the next 12-month earnings vs. a P/E of 20 three months ago

Press Release: ID:nGNX7DXfhm