Healthcare Svcs Gp Down 8.30% To $13.47 After Earnings Miss

Healthcare Services Group, Inc. (HCSG) reported less than expected earnings this morning for Q2 2023.

Healthcare Svcs Gp's earnings came in at an EPS of $0.12 per share, 29% lower than estimates for an EPS of $0.17 per share. The firm's earnings are up 33% since reporting $0.09 per share in the same period a year ago.

Consensus analyst estimates were at $418.7 million. The Healthcare company managed to surpass those expectations for its second quarter with revenue of $418.9 million, a positive revenue surprise of $231 thousand (0%). The firm managed negative 1% growth year-over-year due to Healthcare Svcs Gp reporting quarterly revenue of $424.9 million in its year-ago quarter. Healthcare Svcs Gp achieved a higher earnings growth rate than revenue, signaling that the business has improved its profit margin.

The stock is down 8.30% to $13.47 after the report.

The firm's lower revenue growth to earnings signals that the firm has been able to reduce costs and improve its profit margin overall.

Wall Street Analysts had an average rating of Buy on the stock prior to the report.

InvestorsObserver gives the stock a Bearish Sentiment score at the moment based on recent trading.

Healthcare Svcs Gp has performed a little above average during the past few months. Before the report, Healthcare Svcs Gp received a Long-Term Technical Rank by InvestorsObserver of 72, putting it in the top half of stocks. The firm was recently trading at a 52-week high of $15.97 on April 28, 2023 and set a 52-week low on December 22, 2022 at $11.55.

Healthcare Services Group Inc is a provider of housekeeping and facility-management services to the healthcare industry. The company operates two business segments, both contributing roughly equally to the company's revenue: Housekeeping, laundry, linen, and other services; and Dietary department services. Housekeeping includes management of clients' housekeeping departments, cleaning, disinfecting and sanitizing, laundry, and bed linen and uniform services. Dietary consists of food purchasing, meal preparation, and providing dietitian consulting services. Its clients are primarily nursing homes, retirement complexes, rehabilitation centers, and hospitals in the United States of America.