By Nathalie Tadena
Healthcare Services Group Inc.'s /zigman2/quotes/200556023/composite HCSG -0.33% second-quarter earnings rose 13% as the nursing-home housekeeping and food-service provider posted continued sales growth, though revenue was less than expected.
The company has reported higher earnings on revenue growth over the past year. Nursing homes were generally resilient during the recession, though they trimmed costs by cutting payrolls. The industry has a rosy long-term outlook as the aging U.S. population will boost the need for elder care.
For the latest quarter, Healthcare Services reported a profit of $9.8 million, or 15 cents a share, up from $8.7 million, or 13 cents a share, a year earlier.
Revenue increased 9.6% to $211.5 million.
Analysts polled by Thomson Reuters most recently predicted a profit of 15 cents a share on revenue of $215 million.
Gross margin slid to 14.1% from 14.4%.
Shares fell 0.1% to $17.55 after hours. Through the close, the stock is up 35% over the past 12 months.