The earnings call highlighted strong revenue growth, positive industry trends, and strategic optimism for 2025, but also noted challenges with SG&A costs, staffing in rural markets, and food inflation.

Company Guidance

During the HCSG Q3 2024 earnings call, executives provided guidance reflecting positive momentum as they head into the fourth quarter and beyond. The company reported third-quarter revenue of $428.1 million, aligning with expectations, and projected Q4 revenue to be between $430 million and $440 million. Key metrics included a net income of $14 million and diluted EPS of $0.19. The housekeeping and laundry segment contributed $191.1 million in revenue with a 6.4% margin, while dining and nutrition brought in $237 million with a 5.3% margin. The cost of services was 85.2% of revenue, and SG&A, after adjustments, stood at 10.4%. Adjusted EBITDA for the quarter was $24.8 million, and adjusted cash flow from operations was $19 million. The company reaffirmed its 2024 adjusted cash flow from operations range of $40 million to $55 million. Notably, HCSG repurchased over 350,000 shares, amounting to $4 million, in 2024, with 6.1 million shares remaining under the current authorization. The company remains focused on its strategic priorities, namely driving growth, managing costs, and optimizing collections, to sustain growth and profitability through 2025 and beyond.

Solid Revenue and Earnings Growth

Healthcare Services Group reported Q3 revenue of $428.1 million, in line with expectations, and net income of $14 million, showcasing year-over-year growth in revenue, earnings, and cash flow.

Positive Industry Trends

Occupancy levels are nearing pre-pandemic levels at 79.8%, and there is a stable reimbursement environment with a 4.2% increase in Medicare rates for fiscal year 2025, effective October 1st.

Strong Cash Flow and Share Repurchase

The company achieved adjusted cash flow from operations of $19 million and has repurchased over 350,000 shares of its common stock so far in 2024.

Bullish Outlook for 2025

The company is optimistic about growth into 2025, driven by demand for services and a robust pipeline of opportunities.

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Healthcare Services (HCSG) Earnings, Revenues Date & History

The upcoming earnings date is based on a company’s previous reporting, and may be updated when the actual date is announced

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HCSG Earnings History

Report Date	Fiscal Quarter	Forecast / EPS	Last Year's EPS	EPS YoY Change	Slides	Play Transcript
Feb 12, 2025	2024 (Q4)	0.20 / -	0.2	―	―	―
Oct 23, 2024	2024 (Q3)	0.21 / 0.19	0.17	11.76% (+0.02)	―
Jul 24, 2024	2024 (Q2)	0.20 / -0.02	0.12	-116.67% (-0.14)	―
Apr 24, 2024	2024 (Q1)	0.19 / 0.22	0.17	29.41% (+0.05)	―
Feb 14, 2024	2023 (Q4)	0.16 / 0.20	0.22	-9.09% (-0.02)	―
Oct 25, 2023	2023 (Q3)	0.17 / 0.17	0	―	―
Jul 26, 2023	2023 (Q2)	0.17 / 0.12	0.09	33.33% (+0.03)	―
Apr 26, 2023	2023 (Q1)	0.13 / 0.17	0.15	13.33% (+0.02)	―
Feb 15, 2023	2022 (Q4)	0.11 / 0.22	0.03	633.33% (+0.19)	―
Oct 19, 2022	2022 (Q3)	0.07 / 0.00	0.13	―	―

The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.

Beat

Missed

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HCSG Earnings-Related Price Changes

Report Date	Price 1 Day Before	Price 1 Day After	Percentage Change
Oct 23, 2024	$10.29	$10.58	+2.82%
Jul 24, 2024	$11.87	$11.08	-6.66%
Apr 24, 2024	$11.95	$11.22	-6.11%
Feb 14, 2024	$9.46	$12.03	+27.17%

Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.

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