Healthcare Services Group
The 10-second takeaway
For the quarter ended June 30 (Q2), Healthcare Services Group missed estimates on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue increased slightly. GAAP earnings per share increased.
Margins expanded across the board.
Healthcare Services Group tallied revenue of $273.6 million. The seven analysts polled by S&P Capital IQ foresaw revenue of $282.3 million on the same basis. GAAP reported sales were 2.4% higher than the prior-year quarter's $267.1 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures are normalized by S&P Capital IQ and may vary to maintain comparability with normalized estimates.
EPS came in at $0.19. The seven earnings estimates compiled by S&P Capital IQ predicted $0.19 per share. GAAP EPS of $0.19 for Q2 were 12% higher than the prior-year quarter's $0.17 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures are normalized by S&P Capital IQ and may vary to maintain comparability with normalized estimates.
For the quarter, gross margin was 14.3%, 50 basis points better than the prior-year quarter. Operating margin was 7.2%, 30 basis points better than the prior-year quarter. Net margin was 4.7%, 50 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $301.0 million. On the bottom line, the average EPS estimate is $0.20.
Next year's average estimate for revenue is $1.16 billion. The average EPS estimate is $0.81.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 286 members out of 304 rating the stock outperform, and 18 members rating it underperform. Among 89 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 88 give Healthcare Services Group a green thumbs-up, and one give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Healthcare Services Group is buy, with an average price target of $26.83.
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