Latest news with #SurgeryPartners
Yahoo
4 days ago
- Business
- Yahoo
SGRY Q1 Earnings Call: Volume Growth and Business Mix Shape Outlook Amid Margin Pressures
Healthcare company Surgery Partners (NASDAQ:SGRY) missed Wall Street's revenue expectations in Q1 CY2025, but sales rose 8.2% year on year to $776 million. Its non-GAAP profit of $0.04 per share was 1.4 cents below analysts' consensus estimates. Is now the time to buy SGRY? Find out in our full research report (it's free). Revenue: $776 million (8.2% year-on-year growth) Adjusted EPS: $0.04 vs analyst estimates of $0.05 ($0.01 miss) Adjusted Operating Income: $89.6 million vs analyst estimates of $64.31 million (11.5% margin, 39.3% beat) EBITDA guidance for the full year is $560 million at the midpoint, in line with analyst expectations Operating Margin: 8%, down from 10.6% in the same quarter last year Sales Volumes rose 4.8% year on year (1.3% in the same quarter last year) Market Capitalization: $2.96 billion Surgery Partners' first quarter results were shaped by higher surgical case volumes and a shift in procedure mix. Management pointed to 6.5% surgical case growth, led by gastrointestinal and musculoskeletal procedures, as the main driver behind revenue gains. CEO Eric Evans credited the company's expanding de novo (new facility) pipeline and robust physician recruitment, particularly in orthopedics, as key contributors to this momentum. However, Evans acknowledged that growth in lower-acuity specialties like GI, which carry lower reimbursement rates, pressured revenue per procedure. CFO David Doherty added that seasonality and calendar effects also influenced the mix and rate dynamics. Management maintained that these trends were anticipated and remain consistent with their internal expectations for the quarter. Looking forward, Surgery Partners' guidance centers on continued surgical volume increases, margin expansion initiatives, and sustained investment in both M&A and de novo facility openings. Management reiterated confidence in achieving its long-term growth algorithm, underpinned by ongoing physician recruitment and integration of recent acquisitions. CEO Eric Evans highlighted, 'We expect same-facility growth at or above the high end of our target, with more balanced volume and rate contributions as the year progresses.' CFO David Doherty cautioned that interest expense would be a headwind in coming quarters due to higher rates, but emphasized the company's strong liquidity and ability to fund growth without raising new debt or equity. Management reported no material supply chain risks from tariffs and minimal exposure to changes in Medicaid reimbursement, supporting the company's outlook for steady performance. Management attributed the quarter's performance to strong organic surgical case growth, strategic physician recruitment, and continued investment in new facilities, while acknowledging margin pressure from business mix and external cost factors. Surgical volume growth: Case growth was driven by higher volumes in gastrointestinal and orthopedic procedures, with total joint surgeries up 22% year-on-year. This reflects targeted investments in facility capabilities and recruitment of specialists. De novo facility expansion: The company's pipeline of newly opened and under-construction facilities is heavily weighted toward higher-acuity specialties like orthopedics. These new sites are expected to deliver long-term growth at a lower capital outlay compared to traditional acquisitions. Physician recruitment impact: Nearly 150 new physicians joined in the quarter, with this cohort bringing in higher-acuity and higher-revenue cases relative to prior years. Management expects this compounding effect to continue as new recruits ramp up their case volumes. Margin pressure from mix: A shift toward lower-acuity GI procedures, which receive lower reimbursement rates, led to lower revenue per case and contributed to a decline in operating margin. Management expects business mix to normalize over the course of the year. Investment in operating efficiency: Ongoing standardization of revenue cycle management and process integration from recent acquisitions are intended to drive future margin improvements. Management cited early benefits from these initiatives, particularly in reducing days sales outstanding and improving cash conversion. Surgery Partners' outlook for the remainder of 2025 is anchored by expectations for continued volume growth, margin recovery, and disciplined capital deployment. Balanced volume and rate growth: Management anticipates a more even contribution from both surgical volume and reimbursement rates as the year progresses, with particular emphasis on ramping newly recruited physicians and de novo facilities. Margin improvement initiatives: The company is pursuing ongoing cost efficiency efforts, including standardized revenue cycle management and operational improvements, to offset prior margin compression. Integration of recent acquisitions is expected to yield further gains. Capital allocation and liquidity: Leadership underlined sufficient liquidity and stable leverage to support targeted M&A and de novo development, without the need for additional debt or equity issuance. However, rising interest expense will be a headwind to free cash flow in the next few quarters. Key areas to monitor in upcoming quarters include (1) the pace at which new de novo facilities and recruited physicians ramp up case volumes, (2) the success of ongoing margin improvement and revenue cycle initiatives, and (3) progress in integrating recent acquisitions to drive incremental earnings. Continued stability in payer mix and the absence of supply chain disruptions will also be important indicators of execution. Surgery Partners currently trades at a forward P/E ratio of 21.3×. At this valuation, is it a buy or sell post earnings? Find out in our full research report (it's free). Market indices reached historic highs following Donald Trump's presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth. While this has caused many investors to adopt a "fearful" wait-and-see approach, we're leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
27-05-2025
- Business
- Yahoo
Barclays Maintains Equal Weight Rating on Surgery Partners (SGRY), Cuts PT
On May 27, Barclays analyst Andrew Mok CFA maintained an Equal Weight rating on Surgery Partners, Inc. (NASDAQ:SGRY) and reduced the price target to $24 from $25. The rating update came after Surgery Partners, Inc. (NASDAQ:SGRY) reported mixed fiscal Q1 2025 results on May 12. The analyst told investors in a research update that while the company's performance for the quarter showed effective physician recruitment and strong demand, factors such as rising unit costs and slower pricing growth demand a cautious approach. A surgeon wearing gloves and a mask, performing a procedure in a well-equipped surgical facility. Surgery Partners, Inc. (NASDAQ:SGRY) added around 150 new physicians to its facilities in fiscal Q1 2025, most of whom management expects to become partners eventually. Revenue for the quarter rose 8.2%, while adjusted EBITDA grew around 7%, supported by strong organic results. This included strong demand and same-facility revenue growth of more than 5%. However, the company missed on earnings expectations in its fiscal Q1 2025 results, with reported EPS of $0.04 falling below the expected $0.08. Net loss attributed to the company in the quarter came up to $37.7 million. These contrasting trends led the analyst to slash the price target for Surgery Partners, Inc. (NASDAQ:SGRY). Surgery Partners, Inc. (NASDAQ:SGRY) is a healthcare services company that provides surgical and related ancillary care solutions. Its operations are divided into the Surgical Facility Services, Ancillary Services, and Optical Services business segments. While we acknowledge the potential of SGRY as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than SGRY and that has 100x upside potential, check out our report about the . READ NEXT: and . Disclosure: None.
Yahoo
27-05-2025
- Business
- Yahoo
athenahealth Names Tom Cowhey Chief Financial Officer
Veteran executive joins athenahealth to help drive the company's next phase of strategic growth BOSTON, May 27, 2025--(BUSINESS WIRE)--athenahealth, a leading provider of network-enabled software and services for healthcare practices nationwide, today announced the appointment of Tom Cowhey as the company's new chief financial officer, effective June 9, 2025. Cowhey brings more than two decades of experience leading financial organizations for large, innovative care delivery organizations. He most recently served as Executive Vice President and Chief Financial Officer at CVS Health, where he was also a member of the investment committee for CVS Health Ventures. Prior to his time at CVS Health, Cowhey was the CFO at Surgery Partners, the largest independent operator of short-stay and ambulatory surgical facilities in the United States. From 2007 to 2018, Cowhey held various positions at Aetna, including as CFO of Aetna's U.S. health plan business. "Tom Cowhey brings a broad industry perspective, a deep understanding of the ambulatory care landscape, and first-hand knowledge of the value and impact of the athenahealth platform," said Bob Segert, chairman and chief executive officer at athenahealth. "His ability to integrate the customer perspective into his work will make him an ideal addition to our executive team, and his expertise managing key stakeholders will ensure the market understands our vision, strategy, and execution across athenahealth's lines of business." While at Surgery Partners, Cowhey participated in evaluating and implementing athenaOne, recognizing the platform's impact in reducing complexity and revenue cycle improvement. "I've long admired athenahealth for its mission to transform healthcare delivery for the ambulatory care market, and the leadership team's ability to execute on its strategy," said Cowhey. "I share the belief that the future of care will be delivered in settings that prioritize accessible, high-quality, and sustainable care, and I look forward to partnering with this exceptional leadership team to realize those ambitions and drive the next phase of growth for athenahealth." Tom Cowhey holds a B.A. in economics from Wesleyan University and an M.B.A. from Duke University with a concentration in health sector management. About athenahealth, Inc. athenahealth strives to cure complexity and simplify the practice of healthcare. Our innovative technology includes electronic health records, revenue cycle management, and patient engagement solutions that help healthcare providers, administrators, and practices eliminate friction for patients while getting paid efficiently. athenahealth partners with practices with purpose-built software backed by expertise to produce the insights needed to drive better clinical and financial outcomes. We're inspired by our vision to create a thriving ecosystem that delivers accessible, high-quality, and sustainable healthcare for all. Learn more at View source version on Contacts Iz ConroyMedia@
Yahoo
12-05-2025
- Business
- Yahoo
Surgery Partners (NASDAQ:SGRY) Posts Q1 Sales In Line With Estimates But Stock Drops
Healthcare company Surgery Partners (NASDAQ:SGRY) met Wall Street's revenue expectations in Q1 CY2025, with sales up 8.2% year on year to $776 million. The company's outlook for the full year was close to analysts' estimates with revenue guided to $3.38 billion at the midpoint. Its non-GAAP profit of $0.04 per share was $0.01 below analysts' consensus estimates. Is now the time to buy Surgery Partners? Find out in our full research report. Revenue: $776 million vs analyst estimates of $779.6 million (8.2% year-on-year growth, in line) Adjusted EPS: $0.04 vs analyst estimates of $0.05 ($0.01 miss) Adjusted EBITDA: $103.9 million vs analyst estimates of $104 million (13.4% margin, in line) The company reconfirmed its revenue guidance for the full year of $3.38 billion at the midpoint EBITDA guidance for the full year is $560 million at the midpoint, in line with analyst expectations Operating Margin: 8%, down from 10.6% in the same quarter last year Free Cash Flow was -$16.7 million, down from $19.7 million in the same quarter last year Sales Volumes rose 6.5% year on year (1.3% in the same quarter last year) Market Capitalization: $2.82 billion Eric Evans, Chief Executive Officer, stated, 'I am pleased with our strong start to 2025, as the Company continues to deliver growth that is consistent with Surgery Partners' long-term growth algorithm. Our continued focus on maximizing portfolio performance, advancing a robust M&A pipeline and driving greater operating efficiencies, combined with a bullish outlook on surgical trends and the regulatory landscape, have us positioned to continue delivering industry leading earnings growth in 2025 and beyond.' With more than 180 locations across 33 states serving as alternatives to traditional hospital settings, Surgery Partners (NASDAQ:SGRY) operates a national network of outpatient surgical facilities including ambulatory surgery centers and short-stay surgical hospitals. A company's long-term sales performance is one signal of its overall quality. Any business can experience short-term success, but top-performing ones enjoy sustained growth for years. Thankfully, Surgery Partners's 11.3% annualized revenue growth over the last five years was decent. Its growth was slightly above the average healthcare company and shows its offerings resonate with customers. We at StockStory place the most emphasis on long-term growth, but within healthcare, a half-decade historical view may miss recent innovations or disruptive industry trends. Surgery Partners's annualized revenue growth of 10.3% over the last two years is below its five-year trend, but we still think the results were respectable. Surgery Partners also reports its number of units sold. Over the last two years, Surgery Partners's units sold averaged 3.2% year-on-year growth. Because this number is lower than its revenue growth, we can see the company benefited from price increases. This quarter, Surgery Partners grew its revenue by 8.2% year on year, and its $776 million of revenue was in line with Wall Street's estimates. Looking ahead, sell-side analysts expect revenue to grow 9.1% over the next 12 months, similar to its two-year rate. Still, this projection is healthy and implies the market sees success for its products and services. Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we've identified a relatively under-the-radar profitable growth stock benefiting from the rise of AI, available to you FREE via this link. Surgery Partners has done a decent job managing its cost base over the last five years. The company has produced an average operating margin of 12.1%, higher than the broader healthcare sector. Analyzing the trend in its profitability, Surgery Partners's operating margin decreased by 1 percentage points over the last five years. A silver lining is that on a two-year basis, its margin has stabilized. Still, shareholders will want to see Surgery Partners become more profitable in the future. This quarter, Surgery Partners generated an operating profit margin of 8%, down 2.6 percentage points year on year. This contraction shows it was less efficient because its expenses grew faster than its revenue. We track the long-term change in earnings per share (EPS) for the same reason as long-term revenue growth. Compared to revenue, however, EPS highlights whether a company's growth is profitable. Surgery Partners's full-year EPS flipped from negative to positive over the last five years. This is encouraging and shows it's at a critical moment in its life. In Q1, Surgery Partners reported EPS at $0.04, down from $0.10 in the same quarter last year. This print missed analysts' estimates, but we care more about long-term EPS growth than short-term movements. Over the next 12 months, Wall Street expects Surgery Partners's full-year EPS of $0.88 to grow 24.6%. We were impressed by how significantly Surgery Partners beat analysts' sales volume expectations this quarter. On the other hand, its EPS missed significantly and its revenue was just in line with Wall Street's estimates. Overall, this quarter could have been better. The stock traded down 5.1% to $21 immediately following the results. Big picture, is Surgery Partners a buy here and now? When making that decision, it's important to consider its valuation, business qualities, as well as what has happened in the latest quarter. We cover that in our actionable full research report which you can read here, it's free. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Washington Post
12-05-2025
- Business
- Washington Post
Surgery Partners: Q1 Earnings Snapshot
BRENTWOOD, Tenn. — BRENTWOOD, Tenn. — Surgery Partners Inc. (SGRY) on Monday reported a loss of $37.7 million in its first quarter. On a per-share basis, the Brentwood, Tennessee-based company said it had a loss of 30 cents. Earnings, adjusted for non-recurring costs and stock option expense, came to 4 cents per share.
