Healthcare Services Group (NASDAQ:HCSG) Releases Quarterly Earnings Results, Beats Estimates By $0.10 EPS

Key Points

• Healthcare Services Group reported quarterly EPS of $0.32, topping analysts’ estimate of $0.22 by $0.10 and improving sharply from a loss of $0.44 per share a year ago.
• Revenue came in at $470.81 million, just below the consensus estimate of $471.22 million, while the company posted a net margin of 3.67% and return on equity of 17.81%.
• The stock was down 0.6% after the report, and analysts currently have a Moderate Buy consensus with an average price target of $24.50.

Healthcare Services Group (NASDAQ:HCSG - Get Free Report) issued its quarterly earnings data on Wednesday. The business services provider reported $0.32 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.22 by $0.10, FiscalAI reports. The firm had revenue of $470.81 million during the quarter, compared to the consensus estimate of $471.22 million. Healthcare Services Group had a net margin of 3.67% and a return on equity of 17.81%. During the same quarter in the previous year, the firm posted ($0.44) EPS.

Healthcare Services Group Stock Down 0.6%

Shares of Healthcare Services Group stock opened at $24.80 on Wednesday. The stock's 50-day simple moving average is $22.53 and its 200-day simple moving average is $20.85. Healthcare Services Group has a 52 week low of $12.67 and a 52 week high of $25.75. The company has a market capitalization of $1.70 billion, a price-to-earnings ratio of 25.83 and a beta of 0.78.

Analyst Ratings Changes

Several equities analysts recently weighed in on HCSG shares. BMO Capital Markets lifted their target price on Healthcare Services Group from $22.00 to $24.00 and gave the company a "market perform" rating in a research report on Thursday, April 23rd. Royal Bank Of Canada upped their price target on Healthcare Services Group from $22.00 to $24.00 and gave the stock a "sector perform" rating in a research report on Thursday, April 23rd. Zacks Research downgraded Healthcare Services Group from a "strong-buy" rating to a "hold" rating in a research note on Tuesday, June 30th. UBS Group boosted their price objective on Healthcare Services Group from $27.00 to $30.00 and gave the company a "buy" rating in a research note on Wednesday, July 8th. Finally, Wall Street Zen raised shares of Healthcare Services Group from a "hold" rating to a "buy" rating in a report on Sunday, March 29th. Five research analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the stock. According to MarketBeat, the company presently has an average rating of "Moderate Buy" and a consensus price target of $24.50.

Institutional Trading of Healthcare Services Group

Several institutional investors have recently made changes to their positions in HCSG. Caitong International Asset Management Co. Ltd purchased a new position in Healthcare Services Group in the 4th quarter worth approximately $33,000. EverSource Wealth Advisors LLC grew its holdings in Healthcare Services Group by 163.4% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 2,186 shares of the business services provider's stock valued at $33,000 after buying an additional 1,356 shares in the last quarter. Tower Research Capital LLC TRC grew its holdings in Healthcare Services Group by 600.8% during the 2nd quarter. Tower Research Capital LLC TRC now owns 10,259 shares of the business services provider's stock valued at $154,000 after buying an additional 8,795 shares in the last quarter. PharVision Advisers LLC bought a new stake in shares of Healthcare Services Group during the third quarter valued at approximately $176,000. Finally, Caxton Associates LLP bought a new stake in shares of Healthcare Services Group during the second quarter valued at approximately $163,000. Hedge funds and other institutional investors own 97.97% of the company's stock.

Healthcare Services Group Company Profile

Healthcare Services Group, Inc NASDAQ: HCSG is a leading provider of support services to healthcare facilities across the United States. The company specializes in environmental services, including housekeeping and sanitation, as well as linen and laundry management. In addition, Healthcare Services Group offers dietary and nutrition services, catering to hospitals, skilled nursing facilities, assisted living communities and other long-term care providers.

Founded as a family-owned business in the late 1970s, the company completed its initial public offering in 1997.

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