earnings
confidence high
sentiment positive
materiality 0.75
HCSG Q3 EPS $0.36 on $479.6M revenue; Q4 guide $535-545M, 2027 growth raised to low double-digits
HEALTHCARE SERVICES GROUP INC
- Revenue $479.6M; net income $24.9M and diluted EPS $0.36; cost of services $399.2M (83.2%); SG&A $48.5M, or $49.1M (10.2%) adjusted for $0.6M deferred comp decrease.
- Environmental Services revenue $217.2M at 13.3% margin; Dietary Services $262.4M at 8.7%; effective tax rate 26.2%, with FY 2026 expected at ~25.0%.
- Q4 revenue guided to $535-$545M; 2027 revenue growth outlook raised from mid single-digits to low double-digits.
- Closed NEXDINE Hospitality acquisition Oct. 6, 2026 for $93.5M cash; expected to add over $150M annual revenue at comparable margins and be immediately accretive.
- Genesis bankruptcy: recorded $6.1M estimated recovery after court approved sale to 101 W. State Street on Oct. 14; Q3 buybacks $11.7M, $56.6M YTD.