Overview

* Healthcare Services Group ( HCSG ) 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 ( HCSG ) 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/Mis Actual Consensu

s s

Estimate

Q3 Beat $464.33 $460.40

Revenue mln mln (4

Analysts

)

Q3 EPS $0.59

Q3 Net $42.95

Income 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 ( HCSG ) 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:

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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.)