Surgery Partners EPS Misses by 60%, Sales Guidance Cut to $3.35–$3.45 Billion
Fourth-quarter adjusted EPS of $0.12 lagged estimates by $0.18, while revenue rose 2.4% to $885 million, beating expectations by $18.5 million. The company authorized a $200 million buyback but projected 2026 sales of $3.35–$3.45 billion, below the $3.56 billion consensus.
1. Disappointing Fourth-Quarter Earnings
Adjusted EPS of $0.12 in the fourth quarter fell short of the $0.30 consensus by $0.18. Adjusted EBITDA decreased to $156.9 million from $163.8 million, while operating cash flow declined to $103.4 million from $111.4 million year-over-year.
2. Revenue and Operational Performance
Total revenue rose 2.4% to $885 million, surpassing the $866.5 million estimate. Same-facility revenues increased 3.5%, driven by a 2.1% gain in revenue per case and a 1.3% rise in case volume.
3. 2026 Outlook and Guidance Shortfall
2026 sales are forecast at $3.35–$3.45 billion, below the $3.56 billion consensus. Management attributed the shortfall to unanticipated headwinds and plans to emphasize higher-acuity procedures, strategic M&A and portfolio optimization to bolster performance.
4. Share Repurchase Program and Technical Indicators
A new $200 million share buyback program was authorized. Shares trade 8.5% below the 20-day SMA and 12.3% below the 100-day SMA, with RSI at 44.45 and bearish MACD, as the stock nears a 52-week low with $11.00 support and $13.50 resistance.