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Healthcare Services Posts In Line Q3 Earnings, Ups Dividend

Healthcare Services Group, Inc . HCSG reported third-quarter 2015 net income of 24 cents per share, in line with the Zacks Consensus Estimate. Earnings rebounded from the year-ago loss of 31 cents per share. The bottom-line growth was driven by an increase in revenues.

Healthcare Services Group Inc. - Earnings Surprise | FindTheBest

Behind the Headlines

Healthcare Services' revenues for the quarter improved 13% year over year to $360.2 million. However, the top line missed the Zacks Consensus Estimate of $363 million.

On a year-over-year basis, cost of services provided decreased 2.3% to $308.6 million during the reported quarter. Selling, general and administrative expenses rose nearly 41%.

Investment and interest expenses increased to $1.3 million from $0.01 million in the year-ago quarter.

Financial Update

Healthcare Services Group exited the reported quarter with cash and cash equivalents of $44.4 million, down 41% from $75.3 million at year-end 2014.

Total assets came in at $474.8 million as of Sep 30, 2015, up 1% from $469.6 million at the end of 2014.

Stockholders' equity was $279.1 million as of Sep 30, 2015, up 1.1% from $275.8 million on Dec 31, 2014.

Dividend Update

The board of directors of Healthcare Services hiked the quarterly cash dividend by nearly 0.7% to 18 cents per share. The increased dividend is payable on Dec 18, to shareholders of record as of Nov 20. This is the 49th consecutive quarterly cash dividend since the company initiated the payout in 2003.

Zacks Rank and Stocks to Consider

Currently, Healthcare Services has a Zacks Rank #3 (Hold). Some better-ranked players from the business service sector are Core-Mark Holding Company, Inc. CORE , comScore, Inc. SCOR and Liberty Tax, Inc. TAX . Each of these stocks carries a Zacks Rank #2 (Buy).

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CORE-MARK HLDG (CORE): Free Stock Analysis Report

COMSCORE INC (SCOR): Free Stock Analysis Report

HEALTHCARE SERV (HCSG): Free Stock Analysis Report

LIBERTY TAX INC (TAX): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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