Surgery Partners Delivered Solid Q1 Beat Amid Stabilizing Portfolio, RBC Says

MT Newswires Live05-13

Surgery Partners (SGRY) delivered a solid Q1 beat, indicating a stabilizing portfolio, RBC Capital Markets said in a note emailed Wednesday.

The company reported a Q1 adjusted net loss of $0.03 per diluted share and $810.9 million in revenue. Analysts polled by FactSet expected loss of $0.12 per share and $797.7 million in revenue.

Surgery Partners' management said the three hospitals that weighed on its Q4 results are now performing in line with expectations as they continue to implement recovery plans, with new leadership, RBC noted.

In addition, the company is advancing its efforts to diversify outside of its core short-stay model, the brokerage said. Surgery Partners is looking to restructure ownership of a few larger surgical hospitals and is in advanced talks over an opportunity that could by announced by mid-2026, RBC added.

RBC reiterated its outperform rating and $20 price target on Surgery Partners.

Price: 13.96, Change: -0.01, Percent Change: -0.07

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