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

By Reuters News


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

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Revenue

Slight Miss*

$479.60 mln

$480.81 mln (7 Analysts)

Q3 EPS

$0.36

Q3 Net Income

$24.88 mln

*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


Reuters Recommended Reads

  • Oct 19 - ServisFirst Bancshares Q3 profit jumps on loan growth, wider interest margin

  • Oct 19 - Home Bancorp Q3 net income, EPS fall from prior quarter on deposit pricing pressure

  • Oct 20 - Hims & Hers Health launches online weight management service for men in Germany


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.)

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