HCSG Provides Update On Client Restructuring; Estimates A Q2 Non-cash Charge Of ~$0.20 Per Share, Anticipates No Disruption In Postpetition Payments And Reiterates Its Previously Shared Q2 And 2024 Adjusted Cash Flow Expectations Of $5M-$15M And $40M-$55M
Portfolio Pulse from Benzinga Newsdesk
Healthcare Services Group, Inc. (NASDAQ:HCSG) announced a Q2 non-cash charge of ~$0.20 per share due to LaVie Care Centers' Chapter 11 bankruptcy filing. HCSG expects no disruption in postpetition payments and maintains its Q2 and 2024 adjusted cash flow expectations.
June 03, 2024 | 4:37 pm
News sentiment analysis
Sort by:
Descending
NEUTRAL IMPACT
Healthcare Services Group, Inc. (NASDAQ:HCSG) announced a Q2 non-cash charge of ~$0.20 per share due to LaVie Care Centers' Chapter 11 bankruptcy filing. Despite this, HCSG expects no disruption in postpetition payments and maintains its Q2 and 2024 adjusted cash flow expectations.
The non-cash charge of ~$0.20 per share is a negative factor, but the company's reassurance of no disruption in postpetition payments and maintained cash flow expectations mitigate the impact. Therefore, the short-term price direction is neutral.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100