Demo
HCSG Nasdaq· Healthcare Services Group, Inc
FundamentalsNews digest Peer analysis
Login
HCSG Nasdaq· Healthcare Services Group, Inc
Earnings report Q3 2023

Healthcare Services Group, Inc. Reports Decrease in Revenues for Q3 2023

Segments of revenue

Healthcare Services Group, Inc. reported consolidated revenues of $411.4 million for the three months ended September 30, 2023, compared to $414.5 million for the same period in 2022. The company recognized changes in variable consideration as reductions to revenue, including $3.7 million of Housekeeping revenues and $8.9 million of Dietary revenues. Excluding the impact of these changes, Housekeeping revenues decreased by 2.3% while Dietary revenues increased by 1.8% compared to the corresponding period in 2022.

Strengths

Despite the decrease in overall revenues, the increase in Dietary revenues indicates that the company has been successful in passing through labor and food costs to customer billings. This strategic focus on contractual pass-through has contributed to the growth in this segment. Additionally, the company's management highlighted the positive impact of the contractual pass-through on revenue during the previous year.

Challenges

The decline in Housekeeping revenues can be attributed to a decrease in the number of facilities serviced year-over-year. This decline in demand for Housekeeping services has affected the overall revenue performance of the company.

Noteworthy

The company recognized changes in variable consideration as reductions to revenue, which impacted both Housekeeping and Dietary revenues. This indicates that the company has been flexible in adjusting its revenue recognition based on changing customer needs and contractual agreements.

Summary

Healthcare Services Group, Inc. reported a decrease in consolidated revenues for the third quarter of 2023. While Housekeeping revenues declined due to a decrease in the number of facilities serviced, the company saw an increase in Dietary revenues as a result of contractual pass-through of labor and food costs. The company's ability to adapt its revenue recognition to changing customer needs and contractual agreements demonstrates its flexibility in managing its revenue streams.

Source documents

Form 10-Q  filed on Oct 27, 2023
88 pages scanned

Reference data

Company financials Q3 revenue 411M
Analyst estimates Q3 EPS missed by -9.77%
Sign up to Fey

Get in-depth analysis on thousands of stocks for just $30/month. Cancel anytime.