CHE Earnings Prediction
The chart below shows how CHE performed 10 days before and after its earnings report, based on data from the past quarters. Typically, CHE sees a -1.67% change in stock price 10 days leading up to the earnings, and a +1.48% change 10 days following the report. On the earnings day itself, the stock moves by +0.03%. This data can give you a slight idea of what to expect for the next quarter's release.
CHE Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
639.99M
9.23%
5.58%
Gross Margin
34.11%
-5.75%
6.43%
Operating Margin
18.99%
-4.28%
13.71%
Net Margin
14.11%
-8.20%
12.88%
EPS
6.03
2.20%
20.60%
No Data Available
CHE Earnings Analysis
Chemed Corp Corporation (CHE.N) Earnings Conference Call
Positive
Admissions Growth: VITAS achieved a 3.5% increase in admissions, totaling 16,427, compared to the same period in 2023, indicating strong operational performance.
Average Daily Census Growth: The average daily census (ADC) for VITAS expanded by 14.6% year-over-year, reaching 2,827, showcasing significant growth in patient care.
Covenant Health Acquisition Impact: The acquisition of Covenant Health contributed positively, meeting internal financial projections and adding approximately $11 million to $12 million in revenue for the quarter.
Net Revenue Increase: VITAS net revenue increased by 17.4% to $411 million, driven by a 14.6% increase in days of care and a 3.5% increase in Medicare reimbursement rates.
Adjusted EBITDA Increase: Adjusted EBITDA for VITAS, excluding Medicare Cap, rose by 11.8% to $93.2 million, reflecting strong operational efficiency.
Commercial Revenue Resilience: Roto-Rooter’s commercial revenue showed a slight increase of 0.4%, indicating resilience in the commercial sector despite overall revenue decline.
Residential Water Restoration Growth: Roto-Rooter management identified improvements in conversion rates for residential water restoration, leading to a 2.8% increase in related revenue.
Roto-Rooter Revenue Forecast: The company is optimistic about Roto-Rooter’s growth potential in 2025, forecasting revenue growth of 2.4% to 3% as commercial initiatives gain momentum.
Projected Revenue Growth: VITAS is expected to maintain above-average growth in 2025, with revenue growth prior to Medicare Cap estimated at 10.5% to 11.3%.
Acquisition Integration Success: The company has successfully integrated acquisitions, demonstrating its ability to enhance patient care and operational performance.
Negative
Quarterly Revenue Decline: Roto-Rooter generated quarterly revenue of $229 million in Q4 2024, a decrease of 2.9% compared to the prior year quarter.
Decline in Call Volume: Overall call volume at Roto-Rooter was down 8% compared to the prior year quarter, indicating a decline in demand.
Adjusted EBITDA Decline: Adjusted EBITDA at Roto-Rooter in Q4 2024 totaled $60.3 million, a decrease of 7.2% compared to the prior year quarter, reflecting reduced profitability.
EBITDA Margin Decline: The adjusted EBITDA margin for Roto-Rooter in Q4 2024 was 26.3%, representing a 120 basis point decline from the previous year, indicating worsening efficiency.
Residential Revenue Decline: The residential revenue at Roto-Rooter declined by 2%, suggesting challenges in the residential market segment.
Revenue Growth Decline: VITAS experienced a negative impact on revenue growth due to acuity mix shift, which negatively impacted revenue growth by 119 basis points in the quarter.
Patient Revenue Analysis: The average revenue per patient day in Q4 2024 was $206.23, which, while an increase, was still impacted by the decline in high acuity days of care, which were 2.5% of total days of care, a decline of 22 basis points from the prior year.
Growth Moderation Ahead: The 2025 guidance for VITAS assumes a slight moderation in growth levels compared to the all-time highs seen in 2024, indicating potential challenges ahead.
Medicare Cap Impact: The Medicare Cap billing limitation is estimated at $9.5 million in 2025, which could constrain revenue growth for VITAS.
Quarterly Performance Comparison: The first quarter of 2024 was Roto-Rooter’s strongest quarter, making for difficult comparisons at the beginning of 2025, which could impact perceived performance.
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CHE Earning Call Sentiment
Chemed Corporation (CHE) Q4 2024 Earnings Call Transcript
CHE.N
0.29%Positive
The earnings call presents mixed signals. Strong financial performance, optimistic guidance, and strategic growth initiatives are positives. However, challenges like margin pressures, competitive pressures on Roto-Rooter, and Medicare Cap limitations pose risks. The Q&A section highlighted management's confidence but also revealed uncertainties, particularly regarding marketing impacts and market entry timelines. The absence of a shareholder return plan further tempers positive sentiment. Overall, the factors balance out, leading to a neutral prediction for stock price movement over the next two weeks.
