NASDAQ$HCSG

Healthcare Services Group Inc · Q2 2024 earnings

Q2 2024 earnings · · Investor relations

Briefing

Reported Q2 2024 results, raised second half 2024 revenue estimates, and reaffirmed full-year 2024 cash flow forecast.

HCSG reported Q2 2024 revenue of $426.3 million, in line with expectations. Net loss was ($1.8) million, including a $0.22 impact from client restructuring charges. The company is raising Q3 and Q4 revenue estimates and reaffirming its 2024 adjusted cash flow range of $40.0 to $55.0 million.

  • Revenue of $426.3 million, in line with expectations.
  • Net loss and diluted EPS of ($1.8) million and ($0.02), which includes $0.22 impact of client restructuring charges.
  • Reported and adjusted cash flow from operations of $16.3 million and ($2.4) million, respectively.
  • Raised Q3 and Q4 revenue estimates to $425.0 to $435.0 million and $430.0 to $440.0 million, respectively.

Headline financials

Total Revenue

$426M

Previous: $419M+1.8%
EPS

-$0.02

Previous: $0.12-116.7%
Adjusted Operating Cash Flow

-$2.36M

No prior period
Capital Expenditures

-$3.51M

Previous: -$2.1M-67.4%
Free Cash Flow

-$5.3M

Previous: $6.5M-181.5%
Net Income

-$1.79M

Previous: $8.6M-120.8%
Operating Income

-$461M

Previous: -$421M-9.5%
Gross Profit

$41.5M

Previous: $51.2M-18.9%
Cash & Equivalents

$26.4M

Previous: $28.7M-7.8%
Total Assets

$800M

Previous: $762M+5.0%
Stock-Based Comp

$2.11M

Previous: $2.35M-10.1%

Revenue & EPS history

HCSG · Revenue · Quarterly

$426M

Q2 2024+1.8%vs Q2 2023
Beat estimate in 7 of 15 quarters(47%)
ActualEstimate

Forward guidance

The company raised its Q3 and Q4 revenue estimates to reflect second half of year topline expectations and reaffirmed its 2024 adjusted cash flow forecast.

Tailwinds

  • Continuing to manage cost of services within our 86% targeted range, building on the operational momentum achieved in the second quarter.
  • Driving growth by raising Q3 and Q4 revenue estimates to $425.0 to $435.0 million and $430.0 to $440.0 million, respectively.
  • Collecting what we bill with expectations for cash collections to continue to gain strength over the next six months and further still into 2025.
  • Reaffirming 2024 adjusted cash flow forecast of $40.0 to $55.0 million.
  • Strong business fundamentals and strategic priorities position us to boost profitability, growth, and cash flow in the second half of the year.

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 2024

Historical avgQ2 2024

+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

Earnings price reactions
QuarterReport dateReaction (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%

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