Healthcare Services Stock Falls After Q3 Earnings Miss, Warns On Challenging Environment
Benzinga
Oct. 20, 2021, 03:41 PM
- Healthcare Services Group Inc's (NASDAQ:HCSG) Q3 profit fell 65% to $9.5 million, with an EPS of $0.13, missing the consensus of $0.26.
- Q3 sales of $415.6 million were down 4.7% Y/Y, better than the expected $410.2 million.
- Housekeeping & Laundry and dining & nutrition segment revenues reached $203.4 million and $212.2 million, respectively.
- Ted Wahl, the CEO, stated, "Our third quarter results reflect the impact of the supply chain disruption, labor availability, and significant inflation in the cost of goods that many industries have experienced. Further, the Delta variant surge, vaccine mandates and a broad workforce exit had an adverse impact on nursing homes and contributed to rapid inflation during the quarter."
- The company declared a quarterly cash dividend of $0.21 per common share, payable on December 23, 2021, to shareholders of record on November 19, 2021.
- The direct cost of services stood at $364.8 million. Housekeeping & laundry and dining & nutrition segment margins were 8.5% and 3.4%, respectively.
- Cash outflow from operations for the quarter was $23.1 million.
- Healthcare Services said it remains confident in the longer-term growth outlook, while the unprecedented environment is a headwind on revenue growth and profitability.
- Price Action: HCSG shares are down 14.89% at $19.80 during the market session on the last check Wednesday.
