HCSG - Healthcare Services Group stock ~20% higher after Q1 results beat

Shares of Healthcare Services Group (NASDAQ:HCSG) are trading 20.4% higher at $19.99 on Wednesday morning, after the company reported Q1 2022 results that beat estimates. HCSG reported Q1 GAAP EPS of $0.15, which beat estimates by $0.09, and a 4.7% Y/Y rise in revenue to $426.81M, which beat estimates by $2.03M. The company is a provider and manager of housekeeping, laundry, dining and nutritional services within the healthcare market. According to HCSG CEO Ted Wahl, Q1 results were helped by more efficient labor management, passing on of food inflation costs and progress on modification of the company's service agreements. "We expect (our) service agreement modifications to be completed by the end of Q2," said Wahl. Increases in labor and supply costs led HCSG to report Q1 cost of services at $373.3M, or 87.5% of its revenue. The company's goal is to exit the year with cost of services in line

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Healthcare Services Group stock ~20% higher after Q1 results beat