Latest news with #SurgeryPartners
Business Insider
3 days ago
- Business
- Business Insider
Mizuho Securities Reaffirms Their Buy Rating on Surgery Partners (SGRY)
In a report released today, Ann Hynes from Mizuho Securities reiterated a Buy rating on Surgery Partners (SGRY – Research Report), with a price target of $28.00. The company's shares closed today at $20.33. Confident Investing Starts Here: Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter Hynes covers the Healthcare sector, focusing on stocks such as UnitedHealth, Acadia Healthcare, and Humana. According to TipRanks, Hynes has an average return of 8.9% and a 59.68% success rate on recommended stocks. Currently, the analyst consensus on Surgery Partners is a Moderate Buy with an average price target of $31.22, representing a 53.57% upside. In a report released today, Leerink Partners also reiterated a Buy rating on the stock with a $34.00 price target. The company has a one-year high of $33.97 and a one-year low of $19.50. Currently, Surgery Partners has an average volume of 998.6K.
Bloomberg
4 days ago
- Business
- Bloomberg
Stock Movers: JetBlue, Solar Sector, Surgery Partners
On this edition of Stock Movers: - JetBlue (JBLU) plans to hasten cost cuts by eliminating some flights, ending service to a number of cities and restructuring its leadership ranks as economic uncertainty feeds weaker-than-expected demand for travel, the company said in an internal memo. The carrier will eliminate underperforming routes and plans to announce network changes in coming weeks, according to the memo from Chief Executive Officer Joanna Geraghty seen by Bloomberg on Tuesday. JetBlue implemented budget reductions at support centers and is assessing hiring, spending on business partners and vendors and will combine or restructure some leadership roles. The carrier has halted cosmetic refreshes of four out of its 10 legacy Airbus A320 aircraft used for flights and will park the planes at the end of summer. Shares initially rallied before paring gains. - Solar stocks, like Sunrun (RUN), SolarEdge (SEDG) and Enphase (ENPH) fell sharply after Senate Republicans released a bill that would end clean energy tax credits earlier than expected, dashing hopes that major cuts passed by the House wouldn't stick. The new version of the bill released by the Senate Finance Committee would end incentives for wind and solar in 2028. Tax breaks for other sources of power, such as nuclear, hydropower and geothermal, would be allowed to remain until being phased out in 2036, according to a summary of the legislation. - Surgery Partners (SGRY) shares tumbled as much as 14%, the most intraday since November 2024, after the company turned down a buyout proposal from Bain Capital, with its independent committee concluding that its long-term value as a standalone public company outweighs Bain's offer. The company also reaffirmed its revenue forecast for the full year.
Bloomberg
4 days ago
- Business
- Bloomberg
Stock Movers: JetBlue, Lennar, Surgery Partners
On this episode of Stock Movers: - JetBlue (JBLU) shares are lower on plans to accelerate its cost reductions by eliminating some flights, pausing retrofits and parking some jets due to weaker-than-expected demand for travel. This is according to an internal memo, which CNBC reported on earlier. - Lennar (LEN) shares rise after a miss on the homebuilder's new orders outlook was tempered by better-than-expected gross margins, which RBC Capital Markets said should reassure investors. - Surgery Partners (SGRY) shares slide after the company turned down a buyout proposal from Bain Capital, with its independent committee concluding that its long-term value as a standalone public company outweighs Bain's offer.
Reuters
4 days ago
- Business
- Reuters
Surgery Partners rejects Bain Capital's take-private offer
June 17 (Reuters) - Surgery Partners (SGRY.O), opens new tab said on Tuesday it was unable to agree to the terms set by Bain Capital, its largest shareholder, to take the surgical facility operator private. Surgery Partners' shares fell more than 13% to $20.10 in premarket trading. A special committee of independent directors has concluded that the best path forward for the company and its stockholders was to continue operating as an independent publicly traded company, Surgery Partners said. Bain Capital, which in January offered to acquire all the remaining shares of the company it does not already own for $25.75 apiece, has a 38.97% stake in Surgery Partners, according to LSEG data. The private equity firm did not immediately respond to Reuters' request for comment. Surgery Partners had previously attracted acquisition interest from private equity firm TPG (TPG.O), opens new tab and healthcare giant UnitedHealth Group (UNH.N), opens new tab, according to a Bloomberg News report in August 2024. The surgical facility operator plans to host an investor day in the second half of 2025 to present its strategy and outlook. The company also reiterated its annual revenue forecast of $3.3 billion to $3.45 billion, compared with analysts' average estimate of $3.38 billion.
Yahoo
04-06-2025
- 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
