Healthcare Services Group Inc. (NASDAQ: HCSG) reported on Wednesday that its fiscal second quarter earnings rose 15% due to strong growth in revenues.
Based in Bensalem, Pennsylvania, the company offers housekeeping, laundry, dietary services, long term care and facilities related to long-term care. The company said all of these services continued to post both top-line and bottom-line growth over past two years.
According to the company, its housekeeping and laundry units offer services to more than 3,400 services while its dining services cater to about 600 locations.
In the fiscal second quarter, the company said that earnings stood at $11.3 million, or 17 cents a share up from $9.8 million or 15 cents a share, in the same period of last year. Company’s revenues also soared by 26%, to $267.1 million.
Analysts polled by Thomson Reuters estimated the second quarter earnings at 17 cents on revenues of $265 million.
Nevertheless, Company’s operating margin fell to 6.9% from 7.3% as costs associated to services and other overhead expenses nearly doubled.
The company’s announced a quarterly dividend of 16.375 cents a share, a 0.8% hike from its previous dividend of 16.25 cents a share. Since, 2003, this is the 36th successive dividend increase.
HCSG shares surged on Wednesday as investors digested the company’s latest quarterly results. The stock touched an intra-day high of $21.29 on Wednesday before finishing the day 7.39% higher at $21.08 on above average volume of 1.12 million.
Year-to-date, HCSG shares gained 19.16%, outperforming the broad market.
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