Healthcare Services Group tops Q3 revenue forecasts on new client growth

Healthcare Services

22/10/2025 12:09

Overview

Healthcare Services Group Q3 revenue grows 8.5% yr/yr, beating analyst expectations

Net income and diluted EPS for Q3 reported at $43.0 mln and $0.59

Company repurchased $27.3 mln of common stock under share buyback plan

Outlook

Company expects to manage SG&A in the 9.5% to 10.5% range near term

Company aims to manage cost of services in the 86% range

Healthcare Services Group plans to continue strategic priorities for growth

Result Drivers

NEW CLIENTS AND RETENTION - Co attributes revenue growth to new client wins and high retention rates

EMPLOYEE RETENTION CREDIT - Co's net income and cash flow were positively impacted by the ERC benefit

OPERATIONAL EXCELLENCE - Co cites operational excellence and consistent margins as factors in strong Q3 results

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
Beat
$464.33 mln
$460.40 mln (4 Analysts)
Q3 EPS
$0.59
Q3 Net Income
$42.95 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 2 "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 $19.00, about 12.8% above its October 21 closing price of $16.57

The stock recently traded at 18 times the next 12-month earnings vs. a P/E of 17 three months ago

Press Release: ID:nBw145Thpa

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(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.)