Morgan Keegan Sees Healthcare Services Group Beating Earnings Estimate (HCSG)

Morgan Keegan reiterated its Outperform rating on shares of Healthcare Services Group HCSG this morning. Ahead of its earnings announcement next week, Morgan Keegan's "EPS estimate of $0.21 is $0.01 above the consensus estimate." "Given Medicare and Medicaid reimbursement pressures on the nursing homes HCSG serves, we expect the company's ability to cut its customers' costs through outsourced housekeeping and dietary services will drive new contract signings, enabling HCSG to meet our projections." Healthcare Services Group, Inc. provides housekeeping, laundry, linen, facility maintenance and dietary services to the healthcare industry." Shares are trading higher today, to $19.21. Morgan Keegan analysts believe that "HCSG is a well-managed company and the dominant provider of underpenetrated nursing home housekeeping and food outsourcing services. The company's business is noncyclical and generates substantial cash, enabling it to maintain a debt-free balance sheet and raise its dividend by a cent per share per quarter."