Overview

• Healthcare services manager's Q4 revenue slightly missed analyst expectations

• Company announced new $75 mln share repurchase program

• Company expects mid-single-digit revenue growth in 2026

Outlook

• Healthcare Services Group expects mid-single-digit revenue growth in 2026

• Company aims to manage 2026 cost of services at 86%

• Healthcare Services Group anticipates 2026 effective tax rate of 25%

Result Drivers

• CAMPUS DIVISION GROWTH - Revenue growth driven by Campus division reaching over $100 mln in revenue

• COST MANAGEMENT - Successfully managed cost of services and SG&A within targeted ranges, contributing to free cash flow generation

• SHARE REPURCHASE - Completed $50 mln buyback ahead of schedule and authorized new $75 mln program

Key Details

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the business support services peer group is "buy."

• Wall Street's median 12-month price target for Healthcare Services Group Inc is $21.00, about 9.1% above its February 10 closing price of $19.24

• The stock recently traded at 20 times the next 12-month earnings vs. a P/E of 19 three months ago

Press Release: ID:nBw77cLlza

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)