Why Healthcare Services Stock Is Plunging Today - Healthcare Services Group (NASDAQ:HCSG)

Healthcare Services Group, Inc. HCSG reported second-quarter FY22 revenue growth of 6.7% year-over-year to $424.9 million, missing the consensus of $426.72 million.
Segment revenue: Housekeeping & Laundry $199.1 million and Dining & Nutrition $225.8 million.
Operating profit improved by 38.4% Y/Y to $16.21 million, and the margin expanded by 87 bps to 3.8%.
EPS was $0.09, below the consensus of $0.12.
Housekeeping & laundry and dining & nutrition segment margins were 9.0% and 4.5%, respectively.
Cash flow from operations for the quarter was $9 million, impacted by a $31.6 million increase in accounts receivable.
Dividend: HCSG declared a quarterly cash dividend of $0.21375 per common share, payable on September 23, 2022, to shareholders of record on August 19, 2022.
“While we recognize that some of these decisions have a temporary impact on our reported results, we remain confident that these service agreement modifications will further strengthen our client partnerships and position us to exit the year with cost of services in line with our historical target of 86%,” commented CEO Ted Wahl.
Price Action: HCSG shares are trading lower by 10.51% at $16.61 on the last check Wednesday.