Investor Alert

New York Markets Close in:

Feb. 7, 2012, 5:44 p.m. EST

Healthcare Services profit up 16% as revenue rises

Watchlist Relevance

Want to see how this story relates to your watchlist?

Just add items to create a watchlist now:

  • X
    Healthcare Services Group Inc. (HCSG)

or Cancel Already have a watchlist? Log In

By Nathalie Tadena

Healthcare Services Group Inc.'s /zigman2/quotes/200556023/composite HCSG -0.88% fourth-quarter earnings rose 16% as the nursing-home housekeeping and food-service provider reported better-than-expected revenue growth.

The company has reported top- and bottom-line growth for nearly two years. 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.

Ahead of the results, Morgan Keegan said in a research note that it expects nursing homes to continue to outsource housekeeping, laundry and dietary services to Healthcare Services Group due to nursing home operators' concerns about Medicaid and Medicare reimbursement as well as an increased focus on complex clinical programs.

Healthcare Services reported a profit of $10.6 million, or 16 cents a share, up from $9.1 million, or 14 cents a share, a year earlier. Revenue increased 24% to $250.2 million.

Analysts polled by Thomson Reuters most recently forecast a profit of 16 cents a share on revenue of $225 million.

Operating margin narrowed to 5.7% from 6.6%.

Shares closed at $19 Tuesday and were unchanged after hours. Through the close, the stock is up 11% in the past 12 months.

US : U.S.: Nasdaq
$ 14.02
-0.12 -0.88%
Volume: 94,501
June 8, 2023 11:48a
P/E Ratio
Dividend Yield
Market Cap
$1.05 billion
Rev. per Employee

This Story has 0 Comments
Be the first to comment
More News In

Story Conversation

Commenting FAQs »

Partner Center

Link to MarketWatch's Slice.