Healthcare company Surgery Partners (NASDAQ: SGRY) will be reporting results tomorrow morning. Here’s what to look for.
Surgery Partners beat analysts’ revenue expectations by 4.3% last quarter, reporting revenues of $864.4 million, up 17.5% year on year. It was a strong quarter for the company, with a solid beat of analysts’ EPS estimates and a narrow beat of analysts’ sales volume estimates.
Is Surgery Partners a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Surgery Partners’s revenue to grow 8.7% year on year to $779.6 million, in line with the 7.7% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.05 per share.
Analysts covering the company have generally 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 three times over the last two years.
Looking at Surgery Partners’s peers in the outpatient & specialty care segment, some have already reported their Q1 results, giving us a hint as to what we can expect. U.S. Physical Therapy delivered year-on-year revenue growth of 18.1%, beating analysts’ expectations by 4.4%, and Encompass Health reported revenues up 10.6%, topping estimates by 1.7%. U.S. Physical Therapy’s stock price was unchanged after the results, while Encompass Health was up 11.8%.
Read our full analysis of U.S. Physical Therapy’s results here and Encompass Health’s results here.
Investors in the outpatient & specialty care segment have had steady hands going into earnings, with share prices up 1.5% on average over the last month. Surgery Partners is up 3.9% during the same time and is heading into earnings with an average analyst price target of $31.36 (compared to the current share price of $22.15).
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