BRENTWOOD, Tenn. - Surgery Partners, Inc. (NASDAQ:SGRY), a leading operator of short-stay surgical facilities, reported fourth quarter earnings that topped analyst expectations.
The company announced an adjusted EPS of $0.44, which was $0.06 higher than the analyst estimate of $0.38. However, revenue for the quarter was slightly below the consensus estimate, coming in at $735.4 million against expectations of $741.45 million.
The company's stock saw a modest premarket increase of 0.73% following the earnings release.
The fourth quarter results showed a 4.0% increase in revenue compared to the same period last year, indicating a continued upward trajectory for the company. Days adjusted same-facility revenues also saw a significant increase of 8.1% from the previous year. Despite these positive revenue trends, the company experienced a net loss of $1.0 million for the quarter.
Looking ahead, Surgery Partners has set a positive tone for 2024, projecting revenues to exceed $3.0 billion and adjusted EBITDA to surpass $495 million. This guidance reflects the company's confidence in maintaining its growth momentum and capitalizing on industry trends.
Eric Evans, CEO of Surgery Partners, expressed pride in the company's consistent growth story and strategic positioning for double-digit earnings growth.
In the wake of the earnings announcement, Wayne DeVeydt, Chairman of the Board, emphasized the company's mid-teens growth in 2023 with adjusted EBITDA exceeding $438 million, a 15% increase over the previous year. He attributed this performance to strategic initiatives implemented in 2023, which are expected to catalyze further growth in 2024.
Dave Doherty, CFO, highlighted the company's disciplined management approach and underlying business fundamentals as key factors in delivering the strong fourth quarter and full year results. He also noted the successful refinancing of the December 2023 credit facility, which has shifted material debt maturities to the end of the decade while reducing interest costs.
As Surgery Partners continues to navigate the healthcare landscape, the company's strategic focus on high-quality, cost-effective surgical solutions remains a cornerstone of its growth strategy. With a robust liquidity position and the ability to fund accretive M&A, Surgery Partners is well-positioned to continue its trajectory of growth in the coming year.
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