This healthcare firm runs a national network of surgical centers, specializing in outpatient procedures across key medical specialties.Irenic Capital Management cut its stake in Surgery Partners (SGRY 0.71%) by 1,047,583 shares in the fourth quarter, an estimated $19.25 million trade based on quarterly average pricing, according to a February 17, 2026, SEC filing.What happenedIrenic Capital Management disclosed in a recent SEC filing that it sold 1,047,583 shares of Surgery Partners during the quarter ended ...

Market Overview - The market in 2025 was characterized by extreme volatility, with small caps experiencing a significant rally followed by a sharp retreat due to various uncertainties, including government policy and AI-related concerns [4][5] - Small caps outperformed large caps in earnings growth for the first time in over a decade during the third quarter, indicating an improving earnings backdrop for this asset class [5][6] - Despite challenges, the U.S. economy showed solid growth, allowing the Federal Reserve to continue its rate-cutting cycle [4] Performance Overview - The ClearBridge Small Cap Growth Strategy underperformed the Russell 2000 Growth Index in the fourth quarter, primarily due to disappointing earnings in the IT sector and a strong rally in biotechnology stocks [6][7] - The biotechnology sector saw a significant rebound, with the Russell 2000 Growth Biotech Index returning 28.1%, highlighting the challenges faced by other sectors [6] - The health care sector contributed positively to performance, with notable individual performers like Penumbra and Insmed [8][19] Portfolio Positioning - In 2025, the company established 29 new investments and exited 19 positions, indicating an active year for idea generation [10][11] - New investments included Protagonist Therapeutics, Simpson Manufacturing Company, BETA Technologies, and Dyne Therapeutics, each with strong growth potential in their respective fields [11][22] - The company maintained a disciplined approach to selling positions where fundamentals changed or catalysts were lacking [10] Outlook - The outlook for small cap growth stocks in 2026 is optimistic, with expectations for a broadening of growth leadership across various industries [13][14] - The productivity benefits of AI are anticipated to become more visible, potentially benefiting companies leveraging AI for efficiency and new product offerings [14] - Capital markets are showing signs of improvement, with increased IPO activity and M&A volumes, creating a favorable environment for small cap investments [15][16]

Company Overview - Surgery Partners, Inc. (NASDAQ:SGRY) operates a network of over 200 locations across 30 states, including ambulatory surgery centers, surgical hospitals, multi-specialty physician practices, and urgent care facilities [4] Analyst Ratings and Price Targets - RBC Capital has reiterated its Buy rating on Surgery Partners, Inc. with a price target of $31, indicating confidence in the company's long-term growth prospects [1] - Mizuho Securities has reduced its price target on Surgery Partners from $22 to $19 but maintains an Outperform rating, reflecting a cautious yet positive outlook [2] Industry Outlook - Mizuho Securities anticipates that 2026 will be a pivotal year for the managed care and health facilities sector, emerging from a three-year negative underwriting cycle [3] - Analysts expect improvements in margins across commercial insurance, Medicaid, and Medicare in the coming years, suggesting a recovery in the sector [3]

Core Viewpoint - Surgery Partners (NASDAQ:SGRY) is identified as a promising mid-cap healthcare stock with a current price target of $19, indicating a potential upside of 21% from its current trading level [1]. Group 1: Analyst Ratings and Forecasts - Mizuho Securities analyst Ann Hynes has reiterated a Buy rating on Surgery Partners, supported by a positive forecast for managed care and health facilities in 2026, which is expected to improve margins, particularly in Medicaid and Medicare [2]. - As of December 19, Surgery Partners has coverage from 11 analysts, with 8 assigning a Buy rating and 3 a Hold rating. The stock has an estimated upside potential of 67.5% from current levels, with a consensus target price of $26.30 [3]. Group 2: Company Overview - Surgery Partners provides surgical and ancillary services across various locations in the United States, focusing on non-emergency surgical procedures such as orthopedics, ophthalmology, and pain management, through both single- and multi-specialty facilities [4].

Market Overview - U.S. stocks experienced an upward trend, with the Nasdaq Composite gaining over 400 points on Monday. The Dow increased by 0.17% to 47,068.14, the NASDAQ surged 1.86% to 23,433.12, and the S&P 500 rose 1.04% to 6,798.73 [1] - European shares also saw gains, with the eurozone's STOXX 600 rising 1.54%, Spain's IBEX 35 Index gaining 1.71%, London's FTSE 100 up 1.17%, Germany's DAX 40 increasing by 1.82%, and France's CAC 40 climbing 1.52% [6] Company Performance - Dole Plc (NYSE:DOLE) shares surged approximately 8% after reporting third-quarter results, with adjusted earnings of 16 cents per share, which missed analysts' forecasts of 17 cents and represented a 15.8% decline from 19 cents per share a year earlier. Revenue increased by 10.5% year over year to $2.28 billion, exceeding expectations of $2.15 billion [2] - Galecto Inc (NASDAQ:GLTO) shares skyrocketed 294% to $19.51 following the announcement of the acquisition of Damora Therapeutics [8] - Movano Inc (NASDAQ:MOVE) shares surged 206% to $14.59 after announcing a merger agreement with Corvex [8] - Cogent Biosciences Inc (NASDAQ:COGT) shares rose 125% to $33.36 after its Phase 3 PEAK study showed a median progression-free survival of 16.5 months for bezuclastinib plus sunitinib, with plans to submit an NDA to the FDA for bezuclastinib in intolerant gastrointestinal stromal tumors [8] - Lazydays Holdings Inc (NASDAQ:GORV) shares dropped 40% to $0.97 after announcing plans to delist from the Nasdaq [8] - Motorcar Parts of America Inc (NASDAQ:MPAA) shares fell 22% to $13.52 after reporting mixed quarterly financial results [8] - Surgery Partners Inc (NASDAQ:SGRY) shares decreased by 23% to $16.52 following mixed third-quarter financial results and a cut in FY25 sales guidance below estimates [8] Commodity Market - In commodity news, oil prices decreased by 0.2% to $59.65, while gold prices increased by 2.2% to $4,097.60. Silver rose by 3.7% to $49.920, and copper increased by 1.4% to $5.0240 [5]

Market Overview - U.S. stocks experienced an upward trend, with the Nasdaq Composite gaining over 400 points on Monday. The Dow increased by 0.17% to 47,068.14, the NASDAQ surged 1.86% to 23,433.12, and the S&P 500 rose 1.04% to 6,798.73 [1] - European shares also saw gains, with the eurozone's STOXX 600 rising 1.54%, Spain's IBEX 35 Index gaining 1.71%, London's FTSE 100 up 1.17%, Germany's DAX 40 increasing by 1.82%, and France's CAC 40 climbing 1.52% [6] Company Performance - Dole Plc (NYSE:DOLE) shares surged approximately 8% after reporting third-quarter results, with adjusted earnings of 16 cents per share, which missed analysts' forecasts of 17 cents and represented a 15.8% decline from 19 cents per share a year earlier. Revenue increased by 10.5% year over year to $2.28 billion, exceeding consensus expectations of $2.15 billion [2] - Galecto Inc (NASDAQ:GLTO) shares skyrocketed 294% to $19.51 following the announcement of the acquisition of Damora Therapeutics [8] - Movano Inc (NASDAQ:MOVE) shares surged 206% to $14.59 after announcing a merger agreement with Corvex [8] - Cogent Biosciences Inc (NASDAQ:COGT) shares rose 125% to $33.36 after its Phase 3 PEAK study showed a median progression-free survival of 16.5 months for bezuclastinib plus sunitinib, with plans to submit an NDA to the FDA for bezuclastinib in intolerant gastrointestinal stromal tumors [8] - Lazydays Holdings Inc (NASDAQ:GORV) shares dropped 40% to $0.97 after announcing plans to delist from the Nasdaq [8] - Motorcar Parts of America Inc (NASDAQ:MPAA) shares fell 22% to $13.52 following mixed quarterly financial results [8] - Surgery Partners Inc (NASDAQ:SGRY) shares decreased by 23% to $16.52 after reporting mixed third-quarter financial results and cutting FY25 sales guidance below estimates [8] Commodity Market - In commodity news, oil prices decreased by 0.2% to $59.65, while gold prices increased by 2.2% to $4,097.60. Silver rose by 3.7% to $49.920, and copper increased by 1.4% to $5.0240 [5]

Core Insights - Surgery Partners (NASDAQ:SGRY) met Wall Street's revenue expectations for Q3 CY2025, reporting a 6.6% year-on-year sales increase to $821.5 million, although its full-year revenue guidance of $3.29 billion was 2% below analysts' estimates [1][6] - The company's non-GAAP profit of $0.13 per share was 19% lower than analysts' consensus estimates [1][6] Company Overview - Surgery Partners operates a national network of outpatient surgical facilities, including over 180 locations across 33 states, providing alternatives to traditional hospital settings [3] Revenue Growth - The company has demonstrated solid long-term sales performance with a 12.4% annualized revenue growth over the last five years, outperforming the average healthcare company [4] - In the last two years, Surgery Partners achieved an annualized revenue growth of 10%, which is below its five-year trend but still considered respectable [5] Financial Performance - Q3 CY2025 revenue was $821.5 million, slightly below analyst estimates of $821.8 million, with a 6.6% year-on-year growth [6] - Adjusted EPS was $0.13, missing analyst expectations of $0.16 by 19% [6] - Adjusted EBITDA was $136.4 million, in line with analyst estimates, with a margin of 16.6% [6] - The company revised its full-year revenue guidance down to $3.29 billion from $3.38 billion, reflecting a 2.6% decrease [6] - Full-year EBITDA guidance is set at $537.5 million, below analyst estimates of $556.1 million [6] - Operating margin improved to 12.9%, up from 7.9% in the same quarter last year [6] - Free cash flow margin increased to 7.8%, compared to 5.8% in the same quarter last year [6] Sales Volumes - Sales volumes rose by 3.4% year on year, compared to a 5.4% increase in the same quarter last year [6] - Over the last two years, units sold averaged a 3.8% year-on-year growth, indicating that revenue growth was supported by price increases [7]

Core Insights - Surgery Partners is set to announce earnings results, with expectations of revenue growth slowing compared to the previous year [1][2] - The company reported a strong performance last quarter, exceeding revenue expectations by 1.2% [1] Revenue Expectations - Analysts expect Surgery Partners' revenue to grow 6.7% year on year to $821.8 million, down from a 14.3% increase in the same quarter last year [2] - The company reported revenues of $826.2 million last quarter, reflecting an 8.4% year-on-year increase [1] Earnings Performance - Adjusted earnings per share (EPS) are anticipated to be $0.16 [2] - Surgery Partners has missed Wall Street's revenue estimates three times in the past two years [3] Peer Comparison - In the outpatient & specialty care segment, Select Medical reported a 7.2% year-on-year revenue growth, while U.S. Physical Therapy saw a 17.3% increase [4] - Select Medical and U.S. Physical Therapy both experienced declines in share price following their earnings reports [4] Market Sentiment - There is positive sentiment in the outpatient & specialty care segment, with average share prices up 3.9% over the last month [5] - Surgery Partners' share price has increased by 11.1% during the same period, with an average analyst price target of $30.82 compared to the current share price of $21.93 [5]

分组1 - Natera reported a quarterly loss of $0.64 per share, which was worse than the Zacks Consensus Estimate of a loss of $0.39, and compared to a loss of $0.26 per share a year ago, indicating a significant earnings surprise of -64.10% [1] - The company achieved revenues of $592.18 million for the quarter ended September 2025, exceeding the Zacks Consensus Estimate by 15.77%, and showing an increase from $439.76 million in the same quarter last year [2] - Natera has surpassed consensus revenue estimates four times over the last four quarters, indicating a positive trend in revenue performance [2] 分组2 - The stock has increased by approximately 26.3% since the beginning of the year, outperforming the S&P 500's gain of 15.6% [3] - The company's earnings outlook is crucial for future stock performance, with current consensus EPS estimates at -$0.33 for the coming quarter and -$1.96 for the current fiscal year [7] - The Zacks Industry Rank places Medical Services in the bottom 40% of over 250 Zacks industries, suggesting that the industry outlook may negatively impact stock performance [8]

Core Viewpoint - Danaher (DHR) reported quarterly earnings of $1.8 per share, exceeding the Zacks Consensus Estimate of $1.64 per share, and showing a year-over-year decrease from $1.72 per share [1] Financial Performance - The company achieved revenues of $5.94 billion for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 1.71% and increasing from $5.74 billion year-over-year [2] - Over the last four quarters, Danaher has exceeded consensus EPS estimates three times and topped revenue estimates four times [2] Stock Performance - Danaher shares have declined approximately 18.1% since the beginning of the year, contrasting with the S&P 500's gain of 7.2% [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating expectations of underperformance in the near future [6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $1.80 on revenues of $6.02 billion, and for the current fiscal year, it is $7.70 on revenues of $24.52 billion [7] - The trend of estimate revisions for Danaher was unfavorable prior to the earnings release, which may impact future stock performance [6] Industry Context - The Medical Services industry, to which Danaher belongs, is currently ranked in the bottom 39% of over 250 Zacks industries, suggesting potential challenges ahead [8]