Healthcare Services Q3 Profit Misses, Revenue Tops; Stock Up In Pre-market

(RTTNews) - Healthcare Services Group, Inc. (HCSG) Wednesday reported net income of $322,000 or breakeven per share for the third quarter, down from $9.54 million or $0.13 per share in the same quarter a year ago. While earnings missed analysts' estimate, revenue surpassed it.

Results were hurt by a one-time reduction of about $9 million in revenue due to certain contract modification actions taken by the company.

Quarterly revenue stood at $414.49 million, slightly lower than $415.59 million last year.

On average, 8 analysts polled by Thomson-Reuters were expecting earnings of $0.07 per share on revenue of $396.64 million for the quarter. Analysts' estimates typically exclude special items.

The company's Board declared a quarterly dividend of $0.215 per share, payable on December 22, to shareholders of record as on November 18.

Healthcare Services Group provides management, administrative, and operating services to the housekeeping, laundry, linen, facility maintenance, and dietary service departments of nursing homes, retirement complexes, rehabilitation centers, and hospitals.

The company's stock is up more than 4% in pre-market. It closed at $13.44, up 4.02% on Tuesday.