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Healthcare company Surgery Partners (NASDAQ:SGRY) will be announcing earnings results tomorrow before market open. Here’s what you need to know.
Surgery Partners met analysts’ revenue expectations last quarter, reporting revenues of $770.4 million, up 14.3% year on year. It was a slower quarter for the company, with a significant miss of analysts’ EPS estimates and a slight miss of analysts’ sales volume estimates.
Is Surgery Partners a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Surgery Partners’s revenue to grow 12.7% year on year to $828.7 million, improving from the 4% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.38 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Surgery Partners has missed Wall Street’s revenue estimates three times over the last two years.
Looking at Surgery Partners’s peers in the outpatient & specialty care segment, some have already reported their Q4 results, giving us a hint as to what we can expect. LifeStance Health Group delivered year-on-year revenue growth of 16%, beating analysts’ expectations by 3.6%, and Encompass Health reported revenues up 12.7%, topping estimates by 1.8%. LifeStance Health Group traded up 4.1% following the results while Encompass Health was also up 1.3%.
Read our full analysis of LifeStance Health Group’s results here and Encompass Health’s results here.
Stocks generally had a good 2024. The Fed fought high inflation and won without sending the economy into a recession, otherwise lovingly known as a soft landing. The U.S. Central Bank is now cutting rates. That, plus the election of Donald Trump in November 2024, sent markets even higher, and while some of the outpatient & specialty care stocks have shown solid performance, the group has generally underperformed, with share prices down 5.5% on average over the last month. Surgery Partners is down 1.2% during the same time and is heading into earnings with an average analyst price target of $33.55 (compared to the current share price of $24.99).
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