NASDAQ$HCSG
Healthcare Services Group Inc · Q2 2022 earnings
Q2 2022 earnings · · Investor relations
Briefing
Achieved revenue of $424.9 million and earnings per share of $0.09, impacted by facility exits and increased AR reserves.
Healthcare Services Group reported Q2 2022 results, with revenue of $424.9 million and earnings per share of $0.09. The quarter was affected by facility exits and a $7 million increase in AR reserves. The company is focused on modifying service agreements to address inflation and aims to exit the year with cost of services at 86%.
- Q2 revenue was $424.9 million, with housekeeping & laundry and dining & nutrition segment revenues of $199.1 million and $225.8 million, respectively.
- Direct cost of services was $379.4 million, or 89.3% of revenue, impacted by a $7 million increase in AR reserves.
- Net income for the quarter was $6.8 million, with earnings of $0.09 per share, reduced by approximately $0.07 per share due to the increase in AR reserves.
- The Board of Directors approved an increase in the dividend to $0.21375 per share payable on September 23, 2022.
Headline financials
Revenue & EPS history
HCSG · Revenue · Quarterly
$425M
Forward guidance
The company expects Q3 revenue to be affected by an estimated $10 million related to facility exits and anticipates a one-time reduction of $17 million in revenue and $9 million in operating income related to the expected restructuring of a note receivable. Q3 reported revenue base of $395 million, $400 million, and then a Q4 revenue base of $412 million to $417 million.
Tailwinds
- Negotiations to modify the service agreements have come with certain puts and takes, but we believe will position us much more favorably in the long term.
- We expect to make up a portion of these amounts in addition to collecting what we bill.
- As we continue to engage with our clients to capture both recent and future inflation on a more real-time basis, several components of our partnership may be considered in the negotiations.
- After considering the estimated impact from the facility exits and one-time reduction related to the anticipated note restructuring, we estimate Q3 reported revenue base of $395 million, $400 million, and then a Q4 revenue base of $412 million to $417 million, absent any new business additions or facility assets.
- The company is on track to meet its goal of exiting the year with cost of services in line with its historical target of 86%.
Headwinds
- Expect Q3 revenue to be affected by an estimated $10 million related to facility exits.
- Anticipate a one-time reduction of $17 million in revenue and $9 million in operating income, net of reserves related to the expected restructuring of our note receivable with a certain client.
- There was a temporary impact on cash collections in the quarter, primarily as a result of proactively altering the timing of collections with certain clients.
- Some of these decisions may have a temporary impact on our reported results.
- The company is still in the final stages of negotiation with several clients.
Historical earnings impact
How earnings announcements have historically affected this stock's price.
Avg. return before/after earnings
Based on 20 quarterly earnings reports · overlaid with Q2 2022
+1.0%
Avg return
Earnings day
+1.5%
Avg return
5 days after
-2.3%
Avg return
30 days after
49%
34 / 69 earnings
Positive
+31.3%
Q4 2023
Best reaction
-23.2%
Q2 2022
Worst reaction
| Quarter | Report date | Reaction (Day 0) | +5 days | +30 days |
|---|---|---|---|---|
| Q1 2026 | +18.4% | +12.1% | +5.6% | |
| Q4 2025 | +15.8% | +12.2% | +1.6% | |
| Q3 2025 | +13.6% | +14.3% | +8.4% | |
| Q2 2025 | -1.2% | +0.8% | +4.9% | |
| Q1 2025 | +29.5% | +46.5% | +50.9% | |
| Q4 2024 | -1.8% | -0.6% | +0.1% | |
| Q3 2024 | +4.0% | +6.4% | +13.5% | |
| Q2 2024 | -9.1% | -2.6% | -8.1% | |
| Q1 2024 | -7.9% | -9.1% | -9.6% | |
| Q4 2023 | +31.3% | +28.6% | +27.9% | |
| Q3 2023 | -1.9% | -6.3% | +1.0% | |
| Q2 2023 | -14.9% | -14.2% | -20.4% | |
| Q1 2023 | +9.6% | +10.2% | +2.3% | |
| Q4 2022 | +7.1% | +13.4% | +1.1% | |
| Q3 2022 | -2.5% | -2.8% | +2.8% | |
| Q2 2022 | -23.2% | -23.2% | -20.3% | |
| Q1 2022 | +19.2% | +10.1% | +1.1% | |
| Q4 2021 | -0.9% | -3.6% | +4.3% | |
| Q3 2021 | -13.7% | -14.3% | -20.2% | |
| Q2 2021 | -12.4% | -13.7% | -17.4% | |
| Q1 2021 | +11.6% | +13.5% | +9.5% | |
| Q4 2020 | -7.8% | -9.4% | -13.0% | |
| Q3 2020 | +2.5% | -0.2% | -1.8% | |
| Q2 2020 | -3.0% | -2.9% | -19.2% | |
| Q1 2020 | +9.2% | +8.5% | +0.6% | |
| Q4 2019 | +9.0% | +10.6% | -24.6% | |
| Q3 2019 | -5.6% | -4.1% | -3.3% | |
| Q2 2019 | -21.9% | -17.5% | -26.4% | |
| Q1 2019 | -4.9% | +1.4% | -6.7% | |
| Q4 2018 | -6.1% | -6.7% | -18.9% | |
| Q3 2018 | +4.3% | +5.6% | +9.1% | |
| Q2 2018 | -9.9% | -7.7% | -3.8% | |
| Q1 2018 | -5.3% | -2.8% | -8.9% | |
| Q4 2017 | -1.5% | -4.0% | -19.0% | |
| Q3 2017 | -4.6% | -3.4% | -8.5% | |
| Q2 2017 | +12.2% | +14.1% | +10.7% | |
| Q1 2017 | +10.1% | +8.5% | +10.8% | |
| Q4 2016 | +0.1% | +3.4% | +6.1% | |
| Q3 2016 | -3.5% | -4.7% | -8.4% | |
| Q2 2016 | -6.2% | -7.2% | -5.3% | |
| Q1 2016 | +2.2% | — | — | |
| Q4 2015 | -1.9% | — | — | |
| Q3 2015 | -2.4% | — | — | |
| Q2 2015 | -0.3% | — | — | |
| Q1 2015 | +2.8% | — | — | |
| Q4 2014 | +1.3% | — | — | |
| Q3 2014 | +2.8% | — | — | |
| Q2 2014 | -4.2% | — | — | |
| Q1 2014 | +4.8% | — | — | |
| Q4 2013 | +0.0% | — | — | |
| Q3 2013 | -2.0% | — | — | |
| Q2 2013 | +0.4% | — | — | |
| Q1 2013 | +0.7% | — | — | |
| Q4 2012 | -0.8% | — | — | |
| Q3 2012 | -3.9% | — | — | |
| Q2 2012 | +6.7% | — | — | |
| Q1 2012 | +6.0% | — | — | |
| Q4 2011 | +0.0% | — | — | |
| Q3 2011 | +4.2% | — | — | |
| Q2 2011 | -3.3% | — | — | |
| Q1 2010 | -0.2% | — | — | |
| Q1 2011 | +2.0% | — | — | |
| Q4 2008 | +0.9% | — | — | |
| Q4 2010 | +0.9% | — | — | |
| Q3 2009 | -0.2% | — | — | |
| Q3 2010 | -0.2% | — | — | |
| Q2 2009 | +4.1% | — | — | |
| Q2 2010 | +4.1% | — | — | |
| Q4 2009 | +4.1% | — | — |
Discussion
Share your read of this quarter. Sign-in carries your eToro identity.
Join the conversation
Sign in with eToro to post your read of this quarter and vote on others'.
Sign in with eToro