The lowered outlook led traders to chop Surgical procedure Companions’ market capitalization by 1 / 4. On the finish of the common buying and selling session Nov. 10, the corporate’s inventory (Ticker: SGRY) stood at $16.03, their lowest degree since mid-2020. At that worth, the corporate’s market worth is about $2 billion.

At round $16, Surgical procedure Companions shares are value about 40 p.c lower than what private-equity agency Bain Capital provided to pay in January for the roughly 60 p.c of Surgical procedure Companions it doesn’t already personal. Bain acquired about 54 p.c of Surgical procedure Companions in 2017 however the latter’s board mentioned in June it had declined the investor’s provide to totally purchase Surgical procedure Companions.

Within the three months that ended Sept. 30, Surgical procedure Companions produced a internet revenue of $25.3 million on revenues of almost $822 million. These figures have been up from $6.4 million and $770 million, respectively, in the identical interval of final yr. Similar-facility revenues for the quarter have been up 6.3 p.c yr over yr, which pushed that metric to five.4 p.c year-to-date—implying that fourth-quarter progress might be under 4 p.c.

Nonetheless, Evans instructed analysts he has confidence in Surgical procedure Companions’ longer-term prospects—amongst different issues, he pointed to his group engaged on greater than $300 million value of doable acquisitions—in addition to the function of ASCs within the broader healthcare system.

“I need to be very clear: We’re going to have quantity and fee progress within the fourth quarter,” Evans mentioned. “However we’ve got a really detailed look into this as we head into the fourth quarter. It’s an enormous quarter for us and we’re simply reacting to a development that’s not fairly as robust as we’d usually count on.”