Healthcare company Surgery Partners (NASDAQ: SGRY) will be announcing earnings results this Tuesday before the bell. Here’s what to expect.
Surgery Partners beat analysts’ revenue expectations last quarter, reporting revenues of $885 million, up 2.4% year on year. It was a softer quarter for the company, with full-year revenue guidance missing analysts’ expectations significantly and full-year EBITDA guidance missing analysts’ expectations significantly.
Is Surgery Partners a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Surgery Partners’s revenue to grow 2.9% year on year, slowing from the 8.2% increase it recorded in the same quarter last year.
The majority of analysts covering the company have 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 multiple times over the last two years.
Looking at Surgery Partners’s peers in the healthcare providers & services segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Encompass Health delivered year-on-year revenue growth of 9%, beating analysts’ expectations by 1.2%, and Select Medical reported revenues up 5%, topping estimates by 0.9%. Encompass Health traded up 7.5% following the results while Select Medical’s stock price was unchanged.
Read our full analysis of Encompass Health’s results here and Select Medical’s results here.
There has been positive sentiment among investors in the healthcare providers & services segment, with share prices up 6% on average over the last month. Surgery Partners is up 14.8% during the same time and is heading into earnings with an average analyst price target of $18.68 (compared to the current share price of $14.12).
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