Financial Data and Key Metrics Changes - The company reported net revenue of $770 million, representing growth of over 14% compared to the prior year quarter [5][22] - Adjusted EBITDA grew 22% to $128.6 million, with adjusted EBITDA margins expanding by 100 basis points to 16.7% [6][25] - Same-facility net revenue growth was 4.2%, with surgical case volume growth of 3.7% [14][23] Business Line Data and Key Metrics Changes - Total joint replacements in ASCs increased by 53% in the quarter, with a five-year CAGR exceeding 80% [7] - The company performed nearly 163,000 consolidated surgical cases in the third quarter, with a focus on high acuity business lines [15][22] - Musculoskeletal-related procedures grew by 21% year-to-date, with total joint cases in ASCs growing over 50% in the quarter [17] Market Data and Key Metrics Changes - The company continues to expand its footprint in high-growth markets such as Florida, Texas, California, New York, and Illinois [8][9] - The company completed acquisitions in targeted high-growth markets, including two multi-specialty orthopedic-focused ASCs in Chicago [9][10] Company Strategy and Development Direction - The company is focused on expanding its footprint in existing markets and entering new high-growth markets through M&A and de novo investments [8][11] - The management emphasized the importance of physician recruitment and the expansion of total joint programs as key growth drivers [7][15] - The company aims to maintain a growth algorithm of 4% to 6% for same-facility net revenue in 2024, with a full-year outlook of high single-digit growth [23][29] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's growth trajectory, projecting full-year net revenue and adjusted EBITDA of over $3.075 billion and $508 million, respectively [12][29] - The impact of Hurricane Helene was noted, but all facilities have reopened, and the company is optimistic about future performance [6][44] - Management highlighted the ongoing shift of higher acuity procedures into lower-cost, higher-quality settings as a long-term growth opportunity [18][50] Other Important Information - The company ended the quarter with $222 million in cash and over $815 million in total liquidity [25] - The ratio of total net debt-to-EBITDA was 3.8x, consistent with the prior quarter, with a projection to reduce this ratio below 3.0x over time [28] Q&A Session Summary Question: Free cash flow expectations - Management indicated that cash flow generation remains strong, but higher transaction costs have impacted free cash flow expectations [31][32] Question: Impact of hurricanes on volumes - Management confirmed that the hurricanes had a marginal impact on revenue and cases, with one facility operating on a partial schedule [43][44] Question: Physician recruitment and market dynamics - Management noted strong interest from physicians in joining the company, emphasizing the benefits of efficiency and autonomy [66][68] Question: Cardiology growth potential - Management expressed excitement about the future of cardiology procedures moving into ASCs, highlighting the potential for rapid growth [82][84] Question: M&A strategy and pipeline - Management stated that they remain opportunistic in M&A, with a focus on high acuity procedures and a strong pipeline of opportunities [90][92]

Group 1 - Surgery Partners reported quarterly earnings of $0.19 per share, missing the Zacks Consensus Estimate of $0.25 per share, representing an earnings surprise of -24% [1] - The company posted revenues of $770.4 million for the quarter ended September 2024, surpassing the Zacks Consensus Estimate by 0.17%, compared to year-ago revenues of $674.1 million [2] - Over the last four quarters, Surgery Partners has surpassed consensus EPS estimates two times and topped consensus revenue estimates three times [2] Group 2 - The stock has underperformed the market, losing about 1.8% since the beginning of the year, while the S&P 500 gained 25.8% [3] - The current consensus EPS estimate for the coming quarter is $0.50 on revenues of $834.38 million, and for the current fiscal year, it is $1.07 on revenues of $3.08 billion [7] - The Zacks Industry Rank indicates that the Medical Services sector is currently in the bottom 45% of over 250 Zacks industries, which may impact stock performance [8]

Wall Street expects a year-over-year increase in earnings on higher revenues when Surgery Partners (SGRY) reports results for the quarter ended September 2024. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.The earnings report, which is expected to be released on November 12, 2024, might help the stock move higher if these key numbers are bette ...

Surgery Partners (SGRY) came out with quarterly earnings of $0.21 per share, in line with the Zacks Consensus Estimate. This compares to earnings of $0.28 per share a year ago. These figures are adjusted for non-recurring items. A quarter ago, it was expected that this surgical facilities operator would post earnings of $0.07 per share when it actually produced earnings of $0.10, delivering a surprise of 42.86%. Over the last four quarters, the company has surpassed consensus EPS estimates three times. Surg ...

BRENTWOOD, Tenn., Aug. 06, 2024 (GLOBE NEWSWIRE) -- Surgery Partners, Inc. (NASDAQ:SGRY) ("Surgery Partners" or the "Company"), a leading short-stay surgical facility owner and operator, today announced results for the second quarter ended June 30, 2024. Revenues increased 14.2% to $762.1 million compared to the prior year period Same-facility revenues increased 9.9% Same-facility cases increased 3.9% Net loss attributable to Surgery Partners, Inc. was $15.5 million Adjusted EBITDA was $118.3 million, repre ...

Investors looking for stocks in the Medical Services sector might want to consider either Surgery Partners (SGRY) or Medpace (MEDP) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look. There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The Zacks Rank favors stocks with stro ...

Investors interested in stocks from the Medical Services sector have probably already heard of Surgery Partners (SGRY) and Medpace (MEDP) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look. Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The proven Zacks Rank puts an emphasis on earnings estim ...

Surgery Partners (SGRY) closed the last trading session at $25.55, gaining 0.9% over the past four weeks, but there could be plenty of upside left in the stock if short-term price targets set by Wall Street analysts are any guide. The mean price target of $40.25 indicates a 57.5% upside potential. While the consensus price target is highly sought after by investors, the ability and unbiasedness of analysts in setting price targets have long been questionable. And investors making investment decisions solely ...

Surgery Partners, Inc. (NASDAQ:SGRY) Q1 2024 Results Conference Call May 4, 2024 8:30 AM ET Company Participants Dave Doherty - Chief Financial Officer Wayne DeVeydt - Executive Chairman Eric Evans - Chief Executive Officer Conference Call Participants Brian Tanquilut - Jefferies Whit Mayo - SVB Leerink Kevin Fischbeck - Bank of America Andrew Mok - Barclays Sarah James - Cantor Fitzgerald Gary Taylor - TD Cowen Bill Sutherland - The Benchmark Company Jason Cassorla - Citi Cal Sternick - JPMorgan Chase Ben ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 _____________________________________ Form 10-Q _____________________________________ (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2024 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission file number: 001-37576 Surgery Partners, Inc. (Exact name of registrant as specified in its charter) D ...