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Healthcare Services Group Soars 11.58% on Strong Q1 Earnings

Mover TrackerWednesday, Apr 23, 2025 8:08 am ET

1min read

On April 23, 2025, Healthcare Services Group (HCSG) saw a significant pre-market rise of 11.58%, reflecting strong investor confidence in the company's recent financial performance.

HCSG reported robust first-quarter results, with revenue reaching $447.7 million, marking a 5.7% increase from the previous year. This growth was driven by new client acquisitions and organic expansion. The company's net income for the quarter stood at $17.2 million, with diluted earnings per share (EPS) at $0.23. This performance exceeded analyst estimates, contributing to the positive market sentiment.

HCSG's Environmental Services division generated $196.3 million in revenue with a 10.8% margin, while the Dietary Services segment recorded $251.3 million in revenue with a 7.6% margin. The company's strong liquidity position, supported by $143.9 million in cash and marketable securities, and a $500 million credit facility, further bolstered investor confidence. Additionally, HCSG's commitment to shareholder value was evident through its stock repurchase program, with approximately $7 million of common stock repurchased in the first quarter.

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