Healthcare Services Quarterly Earnings Dip Below View On Lower Revenues

(RTTNews) - Healthcare Services Group, Inc. (HCSG) on Wednesday reported net income of $9.57 million, or $0.13 per share in the second quarter, lower than $23.1 million or $0.31 per share in the same quarter a year ago.

On average, nine analysts polled by Thomson Reuters expected the company to report earnings of $0.30 per share in the quarter. Analysts' estimates typically exclude special items.

Revenue for the quarter decreased to $398.17 million from $452.03 million last year. The consensus estimate was for $407.46 million.

The temporary adjustments with the company's largest customer, Genesis Healthcare to modify pricing through December 2021 and payment terms through December 2022, have negatively impacted the Healthcare Services' revenue and earnings in the second quarter, the company said.

Looking forward, the company expects more than $12.5 million revenue growth in the third quarter, consisting primarily of new dining & nutrition service agreements with existing housekeeping & laundry customers.