Healthcare Services Group (NASDAQ:HCSG) Announces Quarterly Earnings Results, Beats Estimates By $0.12 EPS

Key Points

• Healthcare Services Group reported quarterly EPS of $0.36, exceeding analysts’ $0.24 estimate by $0.12. Revenue was $479.6 million, slightly below the $480.8 million consensus, while EPS declined from $0.59 in the prior-year period.
• The stock opened at $21.50, with a market capitalization of approximately $1.48 billion and a 52-week range of $16.40 to $25.75. The company posted an 18.97% return on equity and a 6.59% net margin.
• Analyst sentiment remains positive, with six Buy ratings and four Holds producing a “Moderate Buy” consensus and an average price target of $26.67; however, an executive recently sold 15,598 shares.

Healthcare Services Group (NASDAQ:HCSG - Get Free Report) issued its quarterly earnings results on Wednesday. The business services provider reported $0.36 EPS for the quarter, beating the consensus estimate of $0.24 by $0.12, FiscalAI reports. The firm had revenue of $479.60 million during the quarter, compared to analysts' expectations of $480.80 million. Healthcare Services Group had a return on equity of 18.97% and a net margin of 6.59%. During the same period in the prior year, the firm posted $0.59 earnings per share.

Healthcare Services Group Stock Performance

Shares of NASDAQ:HCSG opened at $21.50 on Wednesday. Healthcare Services Group has a 52-week low of $16.40 and a 52-week high of $25.75. The company has a market capitalization of $1.48 billion, a P/E ratio of 12.50 and a beta of 0.81. The company has a 50-day simple moving average of $21.58 and a 200 day simple moving average of $21.83.

Insider Buying and Selling

In other Healthcare Services Group news, COO Andrew Kush sold 15,598 shares of the business's stock in a transaction that occurred on Tuesday, August 4th. The stock was sold at an average price of $23.24, for a total transaction of $362,497.52. Following the transaction, the chief operating officer owned 22,741 shares of the company's stock, valued at $528,500.84. The trade was a 40.68% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Insiders own 2.90% of the company's stock.

Wall Street Analyst Weigh In

Several research firms have weighed in on HCSG. UBS Group boosted their price target on Healthcare Services Group from $27.00 to $30.00 and gave the stock a "buy" rating in a research report on Wednesday, July 8th. Oppenheimer initiated coverage on Healthcare Services Group in a report on Wednesday, August 19th. They issued an "outperform" rating and a $28.00 price objective for the company. Weiss Ratings raised Healthcare Services Group from a "buy (b-)" rating to a "buy (b)" rating in a report on Friday, September 25th. Wall Street Zen cut shares of Healthcare Services Group from a "buy" rating to a "hold" rating in a research note on Saturday, August 1st. Finally, Zacks Research downgraded shares of Healthcare Services Group from a "strong-buy" rating to a "hold" rating in a report on Tuesday, September 29th. Six analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the company. According to data from MarketBeat, Healthcare Services Group currently has a consensus rating of "Moderate Buy" and an average price target of $26.67.

Healthcare Services Group Company Profile

Healthcare Services Group, Inc NASDAQ: HCSG provides outsourced support services to healthcare facilities in the United States. Its customers primarily include nursing homes, skilled nursing facilities, continuing care retirement communities, assisted-living facilities and other institutional healthcare providers.

The company's principal service offerings include housekeeping, laundry and linen services, as well as dining and nutritional services. These services are designed to help healthcare operators manage nonclinical functions, maintain facility standards and support the daily needs of residents and patients.

Healthcare Services Group was founded in 1976 and is headquartered in Bensalem, Pennsylvania.

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