Healthcare Services Group slightly misses Q3 revenue estimates, raises 2027 outlook

Overview

• US health and hospitality services firm's Q3 revenue slightly missed analyst expectations

• Company completed NEXDINE Hospitality acquisition, expanding senior living and hospitality footprint

• 2027 revenue growth outlook raised to low double-digits from mid single-digits

Outlook

• Company sees Q4 revenue between $535 mln and $545 mln

• Company expects full-year effective tax rate to be approximately 25%

Result Drivers

• ORGANIC GROWTH INFLECTION - Co said Q3 results were driven by planned organic growth inflection

• COST MANAGEMENT - Co said disciplined operational execution and cost management supported Q3 performance, per CEO Ted Wahl

• SEGMENT MARGINS - Environmental and Dietary Services segments reported margins of 13.3% and 8.7%, respectively

Company press release:

Key Details

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the business support services peer group is "buy"

• Wall Street's median 12-month price target for Healthcare Services Group, Inc. is $26.00, about 20.9% above its October 20 closing price of $21.50

• The stock recently traded at 18 times the next 12-month earnings vs. a P/E of 22 three months ago

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For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)