Healthcare Services Group slightly misses Q3 revenue estimates, raises 2027 outlook

Healthcare Services

Wed 12:11

Overview
US health and hospitality services firm's Q3 revenue slightly missed analyst expectations
Company completed NEXDINE Hospitality acquisition, expanding senior living and hospitality footprint
2027 revenue growth outlook raised to low double-digits from mid single-digits

Outlook
Company sees Q4 revenue between $535 mln and $545 mln
Company expects full-year effective tax rate to be approximately 25%

Result Drivers
ORGANIC GROWTH INFLECTION - Co said Q3 results were driven by planned organic growth inflection
COST MANAGEMENT - Co said disciplined operational execution and cost management supported Q3 performance, per CEO Ted Wahl
SEGMENT MARGINS - Environmental and Dietary Services segments reported margins of 13.3% and 8.7%, respectively

Company press release: ID:nBw36PVsga

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
Slight Miss*
$479.60 mln
$480.81 mln (7 Analysts)
Q3 EPS
 
$0.36
 
Q3 Net Income
 
$24.88 mln
 
*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the business support services peer group is "buy"
Wall Street's median 12-month price target for Healthcare Services Group, Inc. is $26.00, about 20.9% above its October 20 closing price of $21.50
The stock recently traded at 18 times the next 12-month earnings vs. a P/E of 22 three months ago

Reuters Recommended Reads
Oct 19 - ServisFirst Bancshares Q3 profit jumps on loan growth, wider interest margin 
Oct 19 - Home Bancorp Q3 net income, EPS fall from prior quarter on deposit pricing pressure
Oct 20 - Hims & Hers Health launches online weight management service for men in Germany

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)