Healthcare Services Group slightly misses Q3 revenue estimates, raises 2027 outlook
HCSG•Healthcare Services Group reported third-quarter revenue of $479.6 million, slightly below the $480.81 million consensus estimate, and raised its 2027 revenue growth outlook to low double-digits from mid single-digits. The company expects fourth-quarter revenue of $535 million to $545 million and completed its acquisition of NEXDINE Hospitality.
1. Quarterly results
Healthcare Services Group reported third-quarter revenue of $479.6 million, compared with analyst expectations of $480.81 million. Net income was $24.88 million and earnings per share were $0.36. The company said results reflected a planned inflection in organic growth, operational execution and cost management.
2. Outlook and acquisition
The company raised its 2027 revenue growth outlook to low double-digits from mid single-digits. It expects fourth-quarter revenue between $535 million and $545 million and a full-year effective tax rate of approximately 25%. Healthcare Services Group completed its acquisition of NEXDINE Hospitality, expanding its senior living and hospitality footprint; Environmental and Dietary Services reported margins of 13.3% and 8.7%, respectively.
