Overview

* Surgery Partners ( SGRY ) Q3 revenue up 6.6% but slightly missed analyst expectations

* Adjusted EPS for Q3 missed analyst estimates

* Adjusted EBITDA rose 6.1% to $136.4 mln, slightly below estimates

Outlook

* Company revises full-year guidance due to softer volume and payor mix trends

* Company expects full-year revenue between $3.275 bln and $3.30 bln

* Company anticipates full-year Adjusted EBITDA between $535 mln and $540 mln

Result Drivers

* ORTHOPEDIC PROCEDURES - Co cites strength in orthopedic procedures as a key driver of topline growth

* VOLUME AND PAYOR MIX - Co notes softer volume and payor mix trends impacted performance

* M&A PIPELINE - Co continues to evaluate M&A pipeline and portfolio optimization opportunities

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 Slight $821.50 $822 mln

Revenue Miss* mln (10

Analysts

)

Q3 Miss $0.13 $0.17

Adjusted (11

EPS Analysts

)

Q3 Slight $136.40 $137.30

Adjusted Miss* mln mln (10

EBITDA Analysts

)

Q3 16.60%

Adjusted

EBITDA

Margin

Q3 $105.70

Operatin mln

g Income

Q3 $30.80

Pretax mln

Profit

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 9 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the healthcare facilities & services peer group is "buy"

* Wall Street's median 12-month price target for Surgery Partners Inc ( SGRY ) is $32.00, about 32.8% above its November 7 closing price of $21.50

* The stock recently traded at 21 times the next 12-month earnings vs. a P/E of 22 three months ago

Press Release:

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)