Healthcare Services Q2 Profit Rises, But Misses View

(RTTNews) - Healthcare Services Group Inc. (HCSG), Tuesday reported a 14 percent increase in profit for the second quarter, as revenue continued to rise. Nonetheless, both earnings and revenues for the quarter came in short of Wall Street expectations.

Bensalem, Pennsylvania-based Healthcare Services' second-quarter profit rose to $12.93 million or $0.19 per share from $11.32 million or $0.17 per share last year. On average, six analysts polled by Thomson Reuters expected earnings of $0.20 per share for the quarter. Analysts' estimates typically exclude special items.

Healthcare Services Group which provides nursing-home, housekeeping and food-services, said revenues for the quarter grew 2 percent to $273.60 million from $267.11 million last year. Analysts had a consensus revenue estimate of $281.77 million for the period.

Healthcare Services Group provides housekeeping, laundry, linen, facility maintenance and dietary services to nursing homes, retirement complexes, rehabilitation centers and hospitals in the U.S.

Moving ahead, the company said, "The first quarter relationship modifications notwithstanding, we expect our revenues for the remainder of 2013 and 2014 to return to our historical long term target of double digit revenue growth."

HCSG closed Tuesday's trading at $24.74, down or $0.01 or 0.04%, on the Nasdaq.