Chemed Corporation (CHE) Q4 2024 Earnings Call Transcript
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 27 2025
0mins
Should l Buy CHE?
Source: SeekingAlpha
VITAS Net Revenue $411 million, an increase of 17.4% year-over-year. The increase is primarily due to a 14.6% increase in days of care and a 3.5% increase in Medicare reimbursement rates.
Average Revenue per Patient Day $206.23, an increase of 2.44% year-over-year.
Adjusted EBITDA (VITAS) $93.2 million, an increase of 11.8% year-over-year.
Adjusted EBITDA Margin (VITAS) 22.5%, a decrease of 112 basis points year-over-year due to a one-time change in vacation rollover policy in 2023.
Covenant Health Contribution to Revenue $11 million to $12 million, contributing approximately $2.1 million to $2.3 million in net income and $2.8 million to $3 million in adjusted EBITDA.
Roto-Rooter Revenue $229 million, a decrease of 2.9% year-over-year, although it exceeded internal estimates by 4% to 5%.
Roto-Rooter Residential Revenue $160.5 million, a decrease of 2% year-over-year.
Roto-Rooter Commercial Revenue $54.3 million, an increase of 0.04% year-over-year.
Adjusted EBITDA (Roto-Rooter) $60.3 million, a decrease of 7.2% year-over-year.
Adjusted EBITDA Margin (Roto-Rooter) 26.3%, a decrease of 120 basis points year-over-year.
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Analyst Views on CHE
Wall Street analysts forecast CHE stock price to rise
3 Analyst Rating
2 Buy
1 Hold
0 Sell
Moderate Buy
Current: 382.880
Low
475.00
Averages
547.33
High
595.00
Current: 382.880
Low
475.00
Averages
547.33
High
595.00
About CHE
Chemed Corporation is engaged in purchasing, operating, and divesting subsidiaries in diverse business activities. The Company's segment includes VITAS and the Roto-Rooter. The VITAS segment provides hospice and palliative care services to its patients through a network of physicians, registered nurses, home health aides, social workers, clergy and volunteers. It provides direct medical services to patients, as well as spiritual and emotional counseling to both patients and their families. The Roto-Rooter segment provides plumbing, drain cleaning, excavation, water restoration and other related services to residential and commercial customers. The Roto-Rooter services are provided through a network of Company-owned branches, independent contractors and franchisees. The Company's water restoration services involve the remediation of water and humidity after a flood and are provided to both commercial and residential customers.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Chemed Corporation to Release Q1 2026 Financial Results on April 23
- Earnings Release Schedule: Chemed Corporation announced it will release its financial results for Q1 2026 on April 23, 2026, after market close, demonstrating the company's commitment to transparency and investor communication.
- Conference Call Details: The company will host a conference call on April 24, 2026, at 10 a.m. ET to discuss quarterly results and provide business updates, aiming to bolster investor confidence in the company's future prospects.
- Participation Options: Investors can access the live webcast of the conference call through the investor relations section of Chemed's website, offering multiple participation methods to ensure broad dissemination of information.
- Caution on Forward-Looking Statements: Chemed's press release highlights that all forward-looking statements are based on current information, cautioning investors about inherent risks and the potential for actual results to differ materially from expectations, reflecting the company's cautious approach to future uncertainties.
See More
Roto-Rooter Acquires Franchises in San Francisco and Fort Worth
- Acquisition Overview: On March 31, Roto-Rooter Services Company announced the acquisition of franchises and assets in San Francisco, California, and Fort Worth, Texas, for a combined purchase price of approximately $20.6 million, indicating the company's proactive strategy to expand its market share.
- Market Coverage Enhancement: The acquired Roto-Rooter locations serve a population of about 3.3 million people, significantly increasing the company's penetration in key markets and enhancing its competitive edge in plumbing and drain cleaning services.
- Clear Strategic Goals: This acquisition is part of Roto-Rooter's ongoing strategy to acquire franchises aimed at boosting productivity and profitability, reflecting the company's confidence in future growth prospects.
- Company Background: Chemed Corporation, listed on the New York Stock Exchange, operates two wholly owned subsidiaries: VITAS Healthcare, the largest provider of end-of-life hospice care in the U.S., and Roto-Rooter, the leading provider of plumbing and drain cleaning services.
See More
US Stocks Close Mixed: Dow Rises Slightly, Nasdaq Declines
- Mixed Market Performance: On Thursday, the S&P 500 Index fell by 0.54% and the Nasdaq 100 Index declined by 1.16%, while the Dow Jones Industrial Average rose slightly by 0.03%, indicating a divergence in market sentiment, particularly under pressure from tech stocks.
- Nvidia Earnings Impact: Nvidia reported Q4 revenue of $62.3 billion, exceeding expectations, yet its stock dropped over 5% due to uncertainties regarding the Chinese market, reflecting investor concerns about an overheated AI economy that could affect related chipmakers' performance.
- Labor Market Signals: Initial jobless claims in the US rose by 4,000 to 212,000, lower than the expected 216,000, indicating resilience in the labor market, which may provide support for the stock market, especially amid potential interest rate cuts by the Fed.
- Geopolitical Risks Intensify: President Trump threatened military action against Iran, heightening market uncertainty; although there are signs of progress in US-Iran nuclear negotiations, geopolitical risks remain a focal point for investors and could negatively impact the stock market.
See More
Investigation into Chemed Corporation Investor Claims
- Earnings Miss: Chemed Corporation reported its Q4 2025 financial results on February 26, 2026, revealing adjusted earnings per share of $6.42 and revenue of $639.3 million, which fell short of consensus estimates by approximately $0.61 and $19.8 million, indicating potential profitability challenges that could undermine investor confidence going forward.
- Stock Price Decline: Following the earnings report, Chemed's shares experienced a decline on February 26, 2026, as investor concerns about the company's future performance intensified, potentially prompting more investors to seek legal recourse to recover their losses.
- Legal Investigation Initiated: Johnson Fistel, PLLP is investigating whether Chemed's executives violated federal securities laws, and if findings indicate wrongdoing, the company may face increased legal liabilities and financial repercussions.
- Investor Rights Protection: Johnson Fistel, PLLP, a recognized shareholder rights law firm, has successfully recovered approximately $90.725 million for clients, demonstrating its effectiveness in advocating for investor rights, which may encourage more affected investors to participate in claims.
See More
Chemed Corporation Q4 2025 Earnings Call Insights
- VITAS Admissions Growth: In Q4 2025, VITAS admissions reached 17,419, marking a 6% increase from the same period in 2024, indicating positive progress in patient recruitment that is expected to lay the groundwork for future revenue growth.
- Financial Performance Overview: VITAS reported net revenue of $418.8 million in Q4 2025, a 1.9% year-over-year increase, but adjusted EBITDA was $91.6 million, down 1.7% year-over-year, highlighting challenges in balancing cost control with revenue growth.
- Roto-Rooter Revenue Decline: Roto-Rooter experienced a 3.7% revenue decline in Q4 2025, despite a 1.6% increase in commercial revenue, with residential revenue down 3.1%, reflecting the impact of intensified market competition and fluctuating service demand.
- Future Outlook and Strategy: Management anticipates 2026 will be a transition year, with VITAS revenue projected to grow by 5.5% to 6.5%, while Roto-Rooter is expected to achieve revenue growth of 3% to 3.5%, demonstrating the company's confidence in restoring growth moving forward.
See More
Chemed Shares Hit 52-Week Low After Q4 Earnings Miss
- Disappointing Earnings: Chemed reported Q4 2025 financials with adjusted EPS of $6.42 and revenue of $639.3 million, missing consensus estimates by $0.61 and $19.8 million, indicating pressure on the company's profitability.
- Decline in Roto-Rooter Segment: The Roto-Rooter segment saw a ~4% year-over-year revenue drop to $220.6 million, reflecting ongoing challenges in plumbing and cleaning services in both U.S. and international markets, impacting overall performance.
- Analyst Downgrade: Bank of America downgraded Chemed from Buy to Neutral and lowered the price target from $595 to $450, primarily due to Roto-Rooter's EBITDA contracting for three consecutive years, leading to cautious expectations for 2026 guidance.
- Stable Growth in Vitas Segment: Despite challenges in Roto-Rooter, the Vitas segment achieved approximately 2% year-over-year growth, reaching $418.8 million, with analysts suggesting its relatively stable growth could offset the weaknesses in Roto-Rooter.
See More
Chemed Corporation to Release Q1 2026 Financial Results on April 23
- Earnings Release Schedule: Chemed Corporation announced it will release its financial results for Q1 2026 on April 23, 2026, after market close, demonstrating the company's commitment to transparency and investor communication.
- Conference Call Details: The company will host a conference call on April 24, 2026, at 10 a.m. ET to discuss quarterly results and provide business updates, aiming to bolster investor confidence in the company's future prospects.
- Participation Options: Investors can access the live webcast of the conference call through the investor relations section of Chemed's website, offering multiple participation methods to ensure broad dissemination of information.
- Caution on Forward-Looking Statements: Chemed's press release highlights that all forward-looking statements are based on current information, cautioning investors about inherent risks and the potential for actual results to differ materially from expectations, reflecting the company's cautious approach to future uncertainties.
See More
Roto-Rooter Acquires Franchises in San Francisco and Fort Worth
- Acquisition Overview: On March 31, Roto-Rooter Services Company announced the acquisition of franchises and assets in San Francisco, California, and Fort Worth, Texas, for a combined purchase price of approximately $20.6 million, indicating the company's proactive strategy to expand its market share.
- Market Coverage Enhancement: The acquired Roto-Rooter locations serve a population of about 3.3 million people, significantly increasing the company's penetration in key markets and enhancing its competitive edge in plumbing and drain cleaning services.
- Clear Strategic Goals: This acquisition is part of Roto-Rooter's ongoing strategy to acquire franchises aimed at boosting productivity and profitability, reflecting the company's confidence in future growth prospects.
- Company Background: Chemed Corporation, listed on the New York Stock Exchange, operates two wholly owned subsidiaries: VITAS Healthcare, the largest provider of end-of-life hospice care in the U.S., and Roto-Rooter, the leading provider of plumbing and drain cleaning services.
See More
US Stocks Close Mixed: Dow Rises Slightly, Nasdaq Declines
- Mixed Market Performance: On Thursday, the S&P 500 Index fell by 0.54% and the Nasdaq 100 Index declined by 1.16%, while the Dow Jones Industrial Average rose slightly by 0.03%, indicating a divergence in market sentiment, particularly under pressure from tech stocks.
- Nvidia Earnings Impact: Nvidia reported Q4 revenue of $62.3 billion, exceeding expectations, yet its stock dropped over 5% due to uncertainties regarding the Chinese market, reflecting investor concerns about an overheated AI economy that could affect related chipmakers' performance.
- Labor Market Signals: Initial jobless claims in the US rose by 4,000 to 212,000, lower than the expected 216,000, indicating resilience in the labor market, which may provide support for the stock market, especially amid potential interest rate cuts by the Fed.
- Geopolitical Risks Intensify: President Trump threatened military action against Iran, heightening market uncertainty; although there are signs of progress in US-Iran nuclear negotiations, geopolitical risks remain a focal point for investors and could negatively impact the stock market.
See More
Investigation into Chemed Corporation Investor Claims
- Earnings Miss: Chemed Corporation reported its Q4 2025 financial results on February 26, 2026, revealing adjusted earnings per share of $6.42 and revenue of $639.3 million, which fell short of consensus estimates by approximately $0.61 and $19.8 million, indicating potential profitability challenges that could undermine investor confidence going forward.
- Stock Price Decline: Following the earnings report, Chemed's shares experienced a decline on February 26, 2026, as investor concerns about the company's future performance intensified, potentially prompting more investors to seek legal recourse to recover their losses.
- Legal Investigation Initiated: Johnson Fistel, PLLP is investigating whether Chemed's executives violated federal securities laws, and if findings indicate wrongdoing, the company may face increased legal liabilities and financial repercussions.
- Investor Rights Protection: Johnson Fistel, PLLP, a recognized shareholder rights law firm, has successfully recovered approximately $90.725 million for clients, demonstrating its effectiveness in advocating for investor rights, which may encourage more affected investors to participate in claims.
See More
Chemed Corporation Q4 2025 Earnings Call Insights
- VITAS Admissions Growth: In Q4 2025, VITAS admissions reached 17,419, marking a 6% increase from the same period in 2024, indicating positive progress in patient recruitment that is expected to lay the groundwork for future revenue growth.
- Financial Performance Overview: VITAS reported net revenue of $418.8 million in Q4 2025, a 1.9% year-over-year increase, but adjusted EBITDA was $91.6 million, down 1.7% year-over-year, highlighting challenges in balancing cost control with revenue growth.
- Roto-Rooter Revenue Decline: Roto-Rooter experienced a 3.7% revenue decline in Q4 2025, despite a 1.6% increase in commercial revenue, with residential revenue down 3.1%, reflecting the impact of intensified market competition and fluctuating service demand.
- Future Outlook and Strategy: Management anticipates 2026 will be a transition year, with VITAS revenue projected to grow by 5.5% to 6.5%, while Roto-Rooter is expected to achieve revenue growth of 3% to 3.5%, demonstrating the company's confidence in restoring growth moving forward.
See More
Chemed Shares Hit 52-Week Low After Q4 Earnings Miss
- Disappointing Earnings: Chemed reported Q4 2025 financials with adjusted EPS of $6.42 and revenue of $639.3 million, missing consensus estimates by $0.61 and $19.8 million, indicating pressure on the company's profitability.
- Decline in Roto-Rooter Segment: The Roto-Rooter segment saw a ~4% year-over-year revenue drop to $220.6 million, reflecting ongoing challenges in plumbing and cleaning services in both U.S. and international markets, impacting overall performance.
- Analyst Downgrade: Bank of America downgraded Chemed from Buy to Neutral and lowered the price target from $595 to $450, primarily due to Roto-Rooter's EBITDA contracting for three consecutive years, leading to cautious expectations for 2026 guidance.
- Stable Growth in Vitas Segment: Despite challenges in Roto-Rooter, the Vitas segment achieved approximately 2% year-over-year growth, reaching $418.8 million, with analysts suggesting its relatively stable growth could offset the weaknesses in Roto-Rooter.
See More
