Tuesday, housekeeping service provider Healthcare Services Group Inc. (HCSG ), reported a 12% rise in profit for the second quarter, aided by a 16% rise in revenues, as well as higher investment and interest income. Earnings were in line with Street expectations while revenues beat market projections.
The Bensalem, Pennsylvania-based company's second quarter net income increased to $7.82 million or $0.18 per share from $7.00 million or $0.16 per share in the prior-year quarter. On average, seven analysts polled by Thomson Reuters estimated earnings of $0.18 per share for the quarter. Analysts' estimates typically exclude one-time charges and gains.
Quarterly revenues rose 16% to $171.00 million from $148.00 million last year, topping analysts consensus estimate of $168.55 million.
Income from operations for the quarter increased to $11.55 million from $11.00 million in the same quarter last year. Investment and interest income for the quarter surged to $1.16 million from $0.60 million in the corresponding period last year.
For the six-month period, net income rose to $15.55 million or $0.35 per share from $14.00 million or $0.31 per share in the same period last year. Revenues for the period rose to $331.31 million from $295.20 million last year.
The company also declared a quarterly dividend of $0.19 per share payable on August 7 to stockholders of record as of the close of business on July 24, 2009. The dividend leads to a 6% increase sequentially and 27% increase from the same period last year.
HCSG closed Tuesday's trading at $18.26, up $0.30 or 1.67%, on a volume of 0.14 million shares on the Nasdaq. In after hours, the stock further gained $0.20 or 1.10%, trading at $18.46.
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