Healthcare Services Group Q4 Profit Falls As Inflation Hurts; EPS Misses, Revenue Beats

(RTTNews) - Healthcare Services Group, Inc. (HCSG) on Wednesday reported results for the three months ended December 31, 2021 that showed a drastic fall in net income as margin pressures resulting from workforce availability, inflation and supply chain disruption impacted cost of services adversely. While Revenue surpassed the consensus, earnings fell short of expectations.

Net Income for the period was $2.1 million or $0.03 per share as compared to $27.7 million or $0.37 per share in the year ago period. 8 analysts polled by Thomson Reuters were expecting the company to report earnings of $0.13 per share. Analysts typically exclude one-time items.

The fall in net income follows the spurt in direct cost of services to $377.2 million, or 89.7 percent, attributed mainly to increases in labor and supply costs.

Revenues for the period were $420.4 million as compared to $423.2 million in the previous period. 9 analysts polled by Thomson Reuters were expecting the company to report revenues of $417.02 million.

The company has declared a quarterly cash dividend of $0.21125 per share, payable on March 25 to shareholders of record at the close of business on February 25.

Shares of Healthcare Services Group are trading in pre-market at $15.00, down $1.52 or 9.20 percent from previous close.