Healthcare Services Group, Inc. (HCSG), a company providing housekeeping and dietary services, has seen an increase of 6.00% in the premarket trading session. As a result, HCSG stock is trading at $28.11 at the time of writing. On Monday, HCSG closed the day at $26.52.
Replacements in the S&P index
On the 4th of September, HCSG announced that Tandem Diabetes Care Inc. would replace Healthcare services group, Inc. in S&P midcap 400. On the contrary, HSCG would have to replace MicroStrategy Inc. in S&P SmallCap 600. MicroStrategy was no longer appropriate for S&P 600.
HCSG fined by SEC
On the 24th of August, HSCG was fined by US Securities and Exchange Commission (SEC). The fine was worth $6 million. SEC fined the company for its failure to account for legal settlements with its employees. Those enabled the company to inflate its quarterly results. SRC said that John Shea, the company’s CFO since 2012, would pay a $50,000 fine and would ace a two-year suspension from appearing before SEC as an accountant. Derya Warner, the company’s controller, agreed to pay a fine of $10,000. Healthcare Services Chief Executive Ted Wahl said the company always cooperated with the SEC. Apart from that, the company did not comment any further regarding the matter.
Q2 2021 financial results
On the 21st of July, HCSG announced the unaudited quarterly results for the second quarter of 2021, which ended 30th June 2021. According to the results, the company reported revenue of $398.17 million during the quarter, as compared to $452.02 million during the equivalent period of 2020. The selling, general and administrative expenses during the quarter stood at $50.05 million, as compared to $41.46 million during the equivalent period of 2020. The income from operations stood at $11.70 million, while during the same time of 2020, it was $23.04 million. The net income during the quarter stood at $9.56 million, while during the second quarter of 2020, it was $23.10 million. The basic and diluted earnings per common share during the quarter were $0.13 million, while during the equivalent period of 2020, the basic and diluted earnings were $0.31 per share. The cash and cash equivalents on the 30th of June were $124.58 million. Commenting on the results, Ted Wahl praised the company’s performance and said that the company would further continue to execute its strategy of growth.
Q1 2021 financial results
On the 21st of April, HSCG announced the financial results for the first quarter of 2021, which ended 31st March. According to those, the company generated revenue of $407.75 million during the quarter. The selling, administrative and general expenses were $39.98 million during the quarter. The net income was $24.65 million. The basic and diluted earnings per share were $0.33. On the 31st of March, the company had cash and cash equivalents of $123.65 million.
What’s next for HCSG?
Recent performances reveal a solid picture of HCSG stock. HCSG stock increased 1.03% during the previous week and 2.04% during the past month. Based on these and other indicators, potential investors should keenly watch the performance of HCSG stock in the future to come.
