VITAS Raises 2026 Earnings Guidance to $24.00 to $24.75 per Share
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Apr 23 2026
0mins
Consensus $23.88. The company said, "Historically, we do not give quarterly updates to guidance. Due to the materially improved performance of VITAS, coupled with the level of share repurchases in the first quarter of 2026, we believe updating guidance is appropriate in this instance. Further operational detail will be provided during the investor conference call. VITAS' initiatives to return to a normal growth pattern after managing the 2025 Medicare Cap issue were more quickly successful than originally anticipated. This led to higher revenue, excluding the impact of Medicare Cap, and adjusted EBITDA margins, excluding the impact of Medicare Cap, in the first quarter 2026 than what was included in the original guidance. As a result, anticipated ADC growth for 2026 is updated to a revised range of 4.5% to 5.5% compared to the original guidance range of 3.5% to 4.0%. Anticipated revenue growth, excluding the impact of the Medicare Cap, improves from the original guidance range of 5.5% to 6.5% to a revised range of 6.5% to 7.5%. Finally, revised EBITDA margin, excluding the impact of the Medicare Cap, is anticipated to be 18.0% to 18.5% compared to the original guidance of 17.5% to 18.5%. Roto-Rooter performed generally within our expectations. In total, there were various headwinds and tailwinds that contributed to the overall results in the first quarter of 2026. In the first quarter of 2026, unusual ice and snowstorms led to some level of service disruption for five days of the quarter across 24 Roto-Rooter branches. This resulted in an estimated loss of net revenue of between $3 million and $4 million in the quarter. Additionally, total leads for Roto-Rooter increased 3.3% during the quarter but continuing the previously discussed trends, a larger portion of those leads were the result of paid internet marketing. As a result, total marketing expense during the quarter exceeded our expectations by approximately $2.0 million. When factoring all the gives and takes within the expected Roto-Rooter performance for the remainder of fiscal 2026, anticipated revenue growth remains unchanged at 3.0% to 3.5%. Estimated adjusted EBITDA margin is lowered slightly to 21.5% to 22.5% compared to the original guidance range of 22.5% to 23.0%. This is primarily due to elevated marketing costs now expected to persist above our original guidance for the remainder of the year. Based on the above, full-year 2026 earnings per diluted share, excluding non-cash expenses for stock options, tax benefits from stock option exercises, costs related to litigation and other discrete items, is estimated to be in the range of $24.00 to $24.75. The mid-point of the revised guidance represents a 13% increase from 2025 adjusted earnings per diluted share of $21.55. The revised 2026 guidance assumes an effective corporate tax rate on adjusted earnings of 24.5% and a diluted share count of 13.6 million shares. The original 2026 guidance was for adjusted earnings per diluted share to be between $23.25 and $24.25."
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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: 437.330
Low
475.00
Averages
547.33
High
595.00
Current: 437.330
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.
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- Payment Schedule: The dividend is payable on June 16, with a record date of May 28 and an ex-dividend date also on May 28, ensuring shareholders receive their returns promptly, thereby reinforcing shareholder loyalty.
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- Shareholder Proposal Rejection: The non-binding proposal regarding executive compensation was not approved, indicating shareholder scrutiny over the company's executive pay policies, which may prompt a review and adjustment of compensation structures in the future.
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- Nationwide Moratorium: This nationwide pause aims to address healthcare scams, particularly those affecting Medicare, and is expected to enhance transparency and compliance within the healthcare service sector.
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- Adjusted EBITDA Decrease: Adjusted EBITDA stood at C$113.5 million, down C$6.6 million or 5.5% year-over-year, highlighting challenges in profitability that may impact future investment decisions.
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See More
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- 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.
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