Overview

* Healthcare Services ( HCSG ) Q2 revenue rises 7.6%, beating analyst expectations

* Net income impacted by Genesis restructuring, resulting in a loss of $32.4 mln

* Company announces $50 mln share repurchase plan over next 12 months

Outlook

* Healthcare Services Group ( HCSG ) raises 2025 cash flow forecast to $70-85 mln, excluding payroll accrual changes

* Company reiterates 2025 mid-single digit revenue growth expectations

* Healthcare Services Group ( HCSG ) aims to manage 2025 service costs in 86% range

* Company plans $50 mln share repurchase over next 12 months

Result Drivers

* ORGANIC GROWTH - New client wins and higher retention drove organic growth, per CEO Ted Wahl

* GENESIS IMPACT - $61.2 mln non-cash charge from Genesis restructuring impacted net income

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 Beat $458.49 $450.80

Revenue mln mln (5

Analysts

)

Q2 EPS -$0.44

Q2 Net -$32.37

Income mln

Analyst Coverage

* The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", 3 "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 $15.00, about 13% above its July 22 closing price of $13.05

* The stock recently traded at 15 times the next 12-month earnings vs. a P/E of 13 three months ago

Press Release:

(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.)