Healthcare Services Group, Inc. (HCSG) Tuesday reported a significant rise in profit for the third quarter, benefiting mainly from a 17% increase in revenues. The Bensalem, Pennsylvania-based company's earnings were in line with analysts' estimates.
Healthcare Services' net income for the third quarter rose 49% to $8.22 million or $0.19 per share from $5.52 million or $0.13 per share in the previous year.
On average, seven analysts polled by Thomson Reuters expected the company to report earnings of $0.19 per share for the quarter. Analysts' estimates typically exclude special items.
Total revenues for the quarter improved 17% to $178.83 million from $152.98 million last year. Analysts estimated a revenue of $175.83 million for the third quarter.
For the quarter, the company reported an investment and interest income of $1.71 million, compared to a loss of $0.16 million a year ago.
For the nine-month period, net income increased 23% to $23.78 million or $0.54 per share from $19.33 million or $0.44 per share in the same period of the previous year. Total revenues for the period increased 14% to $510.13 million from $448.15 million in the previous year.
The company declared a third quarter cash dividend of $0.20 per share, payable on November 6, 2009 to shareholders of record at the close of business on October 23, 2009. This represents over a 25% increase over the 2008 same period payment.
HCSG closed Tuesday's regular trading at $18.77, down 0.14 or 0.74%, on a volume of 94K shares on the Nasdaq. In after hours, the stock further declined 0.01 or 0.05%, trading at $18.76.
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