SGRY Earnings Prediction
The chart below shows how SGRY performed 10 days before and after its earnings report, based on data from the past quarters. Typically, SGRY sees a +1.59% change in stock price 10 days leading up to the earnings, and a -4.55% change 10 days following the report. On the earnings day itself, the stock moves by +2.04%. This data can give you a slight idea of what to expect for the next quarter's release.
SGRY Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
770.40M
14.29%
1.09%
Gross Margin
16.52%
-18.66%
-12.82%
Operating Margin
13.50%
-13.85%
-9.09%
Net Margin
0.83%
-81.18%
-77.75%
EPS
-0.25
-525.00%
108.33%
No Data Available
SGRY Earnings Analysis
Surgery Partners, Inc. Common Stock Corporation (SGRY.O) Earnings Conference Call
Positive
Q3 Revenue Surge: 1. Strong Revenue Growth: Surgery Partners reported net revenue of $770 million for Q3 2024, reflecting a growth of over 14% compared to the prior year quarter.
Adjusted EBITDA Surge: 2. Significant Adjusted EBITDA Increase: Adjusted EBITDA grew by 22% to $128.6 million, resulting in adjusted EBITDA margins of 16.7%, an expansion of 100 basis points year-over-year.
Joint Replacement Surge: 3. Surge in Total Joint Replacements: Total joint replacements in ASCs increased by 53% in Q3 2024, with a five-year CAGR exceeding 80%, indicating strong demand for these procedures in the ASC environment.
Physician Recruitment Success: 4. Robust Physician Recruitment: Over 230 new physicians began utilizing Surgery Partners' facilities in Q3 2024, contributing to a total of over 640 recruits year-to-date, which is on track to exceed last year's total.
Full-Year Revenue Projections: 5. Positive Full-Year Outlook: The company projects full-year net revenue and adjusted EBITDA of greater than $3.075 billion and $508 million, respectively, representing at least 13% and 16% growth compared to the prior year.
Negative
Hurricane Cash Collection Impact: 1. Hurricane Impact: The company experienced a marginal impact on cash collections due to Hurricane Helene, which affected operations in Florida, Georgia, and North Carolina, leading to a loss of cash collection activity in the last week of September.
High Corporate Leverage Risks: 2. Increased Corporate Debt: Surgery Partners reported $2.2 billion in outstanding corporate debt with a net debt-to-EBITDA ratio of 3.8x, indicating a high level of leverage that could pose risks in a changing economic environment.
Declining Cash Flow: 3. Declining Operating Cash Flow: Operating cash flow decreased to $65 million in Q3 2024, down from $230 million year-to-date last year, primarily due to increased transaction-related costs and working capital fluctuations.
Free Cash Flow Outlook: 4. Lower Free Cash Flow Guidance: The company has moved away from providing a specific free cash flow target, indicating that the dynamic nature of capital deployment may hinder achieving the previously expected range of $140 million to $160 million for the year.
Same-Facility Revenue Concerns: 5. Same-Facility Revenue Growth Below Expectations: Same-facility net revenue growth was reported at 4.2% for Q3, which, while above the long-term growth algorithm, reflects a slowdown compared to previous quarters, raising concerns about future growth sustainability.
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SGRY Earning Call Sentiment
Surgery Partners, Inc. (SGRY) Q3 2024 Earnings Call Transcript
1.0x
00:00
00:00
SGRY.O
0.32%Positive
The earnings call indicates strong financial performance with net revenue and EBITDA growth, alongside improved margins. The company's strategic focus on physician recruitment and de novo facilities supports growth, and the raised revenue and EBITDA outlooks are optimistic. Despite regulatory and economic risks, the stable debt management and no guidance cut are reassuring. The Q&A suggests management is effectively addressing potential concerns. Given the market cap of $3.09 billion, the stock price is likely to see a positive movement in the range of 2% to 8% over the next two weeks.
