Healthcare Services Group Increases Sales but Misses Estimates on Earnings
Healthcare Services Group (NAS: HCSG) reported earnings yesterday. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended March 31 (Q1), Healthcare Services Group beat expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue increased significantly and GAAP earnings per share improved.
Margins contracted across the board.
Healthcare Services Group notched revenue of $260.6 million. The three analysts polled by S&P Capital IQ predicted sales of $255.4 million on the same basis. GAAP reported sales were 25% higher than the prior-year quarter's $208.4 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.13. The five earnings estimates compiled by S&P Capital IQ predicted $0.15 per share. GAAP EPS of $0.13 for Q1 were 8.3% higher than the prior-year quarter's $0.12 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 12.7%, 90 basis points worse than the prior-year quarter. Operating margin was 4.7%, 90 basis points worse than the prior-year quarter. Net margin was 3.3%, 40 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $257.6 million. On the bottom line, the average EPS estimate is $0.17.
Next year's average estimate for revenue is $1.05 billion. The average EPS estimate is $0.69.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 252 members out of 270 rating the stock outperform, and 18 members rating it underperform. Among 69 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 68 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 outperform, with an average price target of $20.67.
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At the time this article was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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