Chemed Scheduled to Announce Q1 Earnings on April 23rd
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 3 days ago
0mins
Should l Buy CHE?
Source: seekingalpha
- Earnings Announcement: Chemed is set to release its Q1 2023 earnings on April 23rd after market close, with consensus EPS estimated at $5.30, reflecting a 5.9% year-over-year decline, while revenue is projected at $649.82 million, indicating a modest 0.4% growth, suggesting slight improvement in revenue generation.
- Performance Expectations: Over the past two years, Chemed has only beaten EPS and revenue estimates 25% of the time, indicating significant volatility in its performance, and with no upward revisions in recent EPS and revenue forecasts, market sentiment appears cautious regarding future results.
- Market Reactions: In the last three months, Chemed's EPS estimates have seen three downward revisions, with revenue estimates also experiencing three cuts, reflecting analysts' concerns about the company's profitability prospects, which may negatively impact its stock price.
- Strategic Adjustments: Chemed forecasts VITAS revenue growth of 5.5% to 6.5% for 2026, signaling that 55% of its earnings will be back-weighted in the second half of the year, a strategic move aimed at addressing current market challenges and optimizing resource allocation.
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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: 382.970
Low
475.00
Averages
547.33
High
595.00
Current: 382.970
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 Q1 2026 Earnings Call Highlights
- VITAS Outperformance: VITAS achieved 19,394 admissions in Q1 2026, with hospital admissions at 43.8%, exceeding expectations and adding $32.5 million to the Medicare Cap cushion in Florida, indicating strong growth potential in the region.
- Roto-Rooter Revenue Recovery: Roto-Rooter saw its residential plumbing and drain revenue increase for the first time since Q4 2022, driven by a 3.3% rise in total leads and an 18.7% increase in paid leads, although this required nearly $3 million in additional marketing spend to sustain growth.
- Upgraded Financial Outlook: Chemed raised its full-year 2026 earnings per share guidance to a range of $24 to $24.75, up from the previous $23.25 to $24.25, reflecting increased confidence in the future performance of both VITAS and Roto-Rooter.
- Marketing Cost Pressures: While Roto-Rooter's revenue growth remains unchanged at 3% to 3.5%, the adjusted EBITDA margin has been slightly lowered to 21.5% to 22.5% due to ongoing marketing costs, highlighting challenges faced in a competitive market environment.
See More
US Stocks Close Higher: S&P 500 Hits All-Time High
- S&P 500 Hits Record High: The S&P 500 index rose by 0.80%, closing at an all-time high, reflecting market optimism about economic recovery, particularly driven by technology stocks, which further solidifies investor confidence.
- Intel's Strong Performance: Intel's stock surged over 23% after forecasting Q2 revenue between $13.8 billion and $14.8 billion, significantly exceeding the $13.04 billion expectation, indicating strong confidence in the semiconductor industry's potential driven by artificial intelligence, which may spark increased investment in the sector.
- Consumer Confidence Rebounds: The University of Michigan's consumer sentiment index was revised upward to 49.8, surpassing the expected 48.5, suggesting an increase in consumer confidence regarding economic prospects, which could drive consumer spending and economic growth.
- International Dynamics Affecting Markets: Progress in US-Iran negotiations has boosted market sentiment; despite tensions in the Strait of Hormuz, optimism about future talks may alleviate energy price pressures and promote stock market gains.
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- Intel Stock Surge: Intel (INTC) shares rose over 22% to a record high after forecasting Q2 revenue between $13.8 billion and $14.8 billion, significantly exceeding expectations of $13.04 billion, thereby boosting overall confidence in the semiconductor sector and reflecting optimism about the economic potential of artificial intelligence.
- Consumer Confidence Rebound: The University of Michigan's consumer sentiment index was revised upward to 49.8, surpassing expectations of 48.5, indicating an increase in consumer confidence which could stimulate spending and drive economic growth.
- Oil Price Volatility Impacting Markets: WTI crude oil prices fell over 1% amid expectations of renewed US-Iran talks, potentially exacerbating the global energy crisis and affecting operational costs and profit forecasts for energy-intensive sectors.
- Strong Earnings Season Performance: So far, 81% of the 123 S&P 500 companies that reported earnings have beaten estimates, with Q1 earnings projected to climb 12% year-over-year, demonstrating resilience in corporate profitability that may further boost market sentiment.
See More
Mixed US Stocks with Intel Surging 22% on Strong Q2 Forecast
- Intel's Strong Outlook: Intel forecasts Q2 revenue between $13.8 billion and $14.8 billion, exceeding expectations of $13.04 billion, leading to a 22% stock surge that reignites optimism in the semiconductor sector, potentially driving increased investments and R&D across the industry.
- Market Optimism: The stock market is mostly higher as talks between the US and Iran appear to be resuming, with the Nasdaq 100 reaching an all-time high, reflecting investor expectations for reduced geopolitical risks, which may enhance market stability and investor confidence.
- WTI Oil Price Fluctuations: WTI crude oil prices fell over 1% after initially gaining 1% due to the US naval blockade on Iran, which could exacerbate the global energy crisis, impacting oil prices and the profitability of related companies, particularly in the Middle East.
- Earnings Season Performance: So far, 81% of the 123 S&P 500 companies that reported earnings have beaten estimates, with Q1 earnings projected to rise 12% year-over-year, indicating improved corporate profitability that may further drive stock market gains and bolster investor confidence.
See More
Chemed (CHE) Q1 2026 Earnings Call Transcript
See More
Chemed Q1 Earnings Beat Expectations with Strong VITAS Growth
- Earnings Highlights: Chemed's Q1 non-GAAP EPS of $5.65 exceeded expectations by $0.35, with revenue of $657.5 million reflecting a 1.6% year-over-year increase, surpassing forecasts by $7.68 million, indicating robust performance in the healthcare services sector.
- VITAS Segment Growth: The VITAS segment reported net patient revenue of $420 million, a 3.1% increase, with an average daily census of 22,723, up 2.2%, and admissions of 19,394, rising 6.9%, demonstrating strong demand and expansion capabilities in this market.
- Roto-Rooter Segment Challenges: The Roto-Rooter segment generated revenue of $237.5 million, down 0.9%, with net income of $37.7 million, a 9.7% decline, and adjusted EBITDA down 9.6%, highlighting market pressures and declining profitability in this division.
- Future Outlook: Chemed forecasts VITAS revenue growth of 5.5% to 6.5% for 2026, signaling that 55% of 2026 earnings will be back-half weighted, reflecting strategic planning and adaptability in response to transition initiatives.
See More
Chemed Corporation Q1 2026 Earnings Call Highlights
- VITAS Outperformance: VITAS achieved 19,394 admissions in Q1 2026, with hospital admissions at 43.8%, exceeding expectations and adding $32.5 million to the Medicare Cap cushion in Florida, indicating strong growth potential in the region.
- Roto-Rooter Revenue Recovery: Roto-Rooter saw its residential plumbing and drain revenue increase for the first time since Q4 2022, driven by a 3.3% rise in total leads and an 18.7% increase in paid leads, although this required nearly $3 million in additional marketing spend to sustain growth.
- Upgraded Financial Outlook: Chemed raised its full-year 2026 earnings per share guidance to a range of $24 to $24.75, up from the previous $23.25 to $24.25, reflecting increased confidence in the future performance of both VITAS and Roto-Rooter.
- Marketing Cost Pressures: While Roto-Rooter's revenue growth remains unchanged at 3% to 3.5%, the adjusted EBITDA margin has been slightly lowered to 21.5% to 22.5% due to ongoing marketing costs, highlighting challenges faced in a competitive market environment.
See More
US Stocks Close Higher: S&P 500 Hits All-Time High
- S&P 500 Hits Record High: The S&P 500 index rose by 0.80%, closing at an all-time high, reflecting market optimism about economic recovery, particularly driven by technology stocks, which further solidifies investor confidence.
- Intel's Strong Performance: Intel's stock surged over 23% after forecasting Q2 revenue between $13.8 billion and $14.8 billion, significantly exceeding the $13.04 billion expectation, indicating strong confidence in the semiconductor industry's potential driven by artificial intelligence, which may spark increased investment in the sector.
- Consumer Confidence Rebounds: The University of Michigan's consumer sentiment index was revised upward to 49.8, surpassing the expected 48.5, suggesting an increase in consumer confidence regarding economic prospects, which could drive consumer spending and economic growth.
- International Dynamics Affecting Markets: Progress in US-Iran negotiations has boosted market sentiment; despite tensions in the Strait of Hormuz, optimism about future talks may alleviate energy price pressures and promote stock market gains.
See More
US Stocks Mostly Higher, Intel Hits Record High
- Intel Stock Surge: Intel (INTC) shares rose over 22% to a record high after forecasting Q2 revenue between $13.8 billion and $14.8 billion, significantly exceeding expectations of $13.04 billion, thereby boosting overall confidence in the semiconductor sector and reflecting optimism about the economic potential of artificial intelligence.
- Consumer Confidence Rebound: The University of Michigan's consumer sentiment index was revised upward to 49.8, surpassing expectations of 48.5, indicating an increase in consumer confidence which could stimulate spending and drive economic growth.
- Oil Price Volatility Impacting Markets: WTI crude oil prices fell over 1% amid expectations of renewed US-Iran talks, potentially exacerbating the global energy crisis and affecting operational costs and profit forecasts for energy-intensive sectors.
- Strong Earnings Season Performance: So far, 81% of the 123 S&P 500 companies that reported earnings have beaten estimates, with Q1 earnings projected to climb 12% year-over-year, demonstrating resilience in corporate profitability that may further boost market sentiment.
See More
Mixed US Stocks with Intel Surging 22% on Strong Q2 Forecast
- Intel's Strong Outlook: Intel forecasts Q2 revenue between $13.8 billion and $14.8 billion, exceeding expectations of $13.04 billion, leading to a 22% stock surge that reignites optimism in the semiconductor sector, potentially driving increased investments and R&D across the industry.
- Market Optimism: The stock market is mostly higher as talks between the US and Iran appear to be resuming, with the Nasdaq 100 reaching an all-time high, reflecting investor expectations for reduced geopolitical risks, which may enhance market stability and investor confidence.
- WTI Oil Price Fluctuations: WTI crude oil prices fell over 1% after initially gaining 1% due to the US naval blockade on Iran, which could exacerbate the global energy crisis, impacting oil prices and the profitability of related companies, particularly in the Middle East.
- Earnings Season Performance: So far, 81% of the 123 S&P 500 companies that reported earnings have beaten estimates, with Q1 earnings projected to rise 12% year-over-year, indicating improved corporate profitability that may further drive stock market gains and bolster investor confidence.
See More
Chemed (CHE) Q1 2026 Earnings Call Transcript
See More
Chemed Q1 Earnings Beat Expectations with Strong VITAS Growth
- Earnings Highlights: Chemed's Q1 non-GAAP EPS of $5.65 exceeded expectations by $0.35, with revenue of $657.5 million reflecting a 1.6% year-over-year increase, surpassing forecasts by $7.68 million, indicating robust performance in the healthcare services sector.
- VITAS Segment Growth: The VITAS segment reported net patient revenue of $420 million, a 3.1% increase, with an average daily census of 22,723, up 2.2%, and admissions of 19,394, rising 6.9%, demonstrating strong demand and expansion capabilities in this market.
- Roto-Rooter Segment Challenges: The Roto-Rooter segment generated revenue of $237.5 million, down 0.9%, with net income of $37.7 million, a 9.7% decline, and adjusted EBITDA down 9.6%, highlighting market pressures and declining profitability in this division.
- Future Outlook: Chemed forecasts VITAS revenue growth of 5.5% to 6.5% for 2026, signaling that 55% of 2026 earnings will be back-half weighted, reflecting strategic planning and adaptability in response to transition initiatives.
See More
