Chemed ( (CHE) ) has realeased its Q3 earnings. Here is a breakdown of the information Chemed presented to its investors.
Chemed Corporation, operating VITAS Healthcare and Roto-Rooter, is a major provider of end-of-life care and plumbing services in the United States.
In its third-quarter 2024 earnings report, Chemed Corporation announced a 7.4% increase in revenue to $606.2 million, alongside a slight boost in diluted earnings per share. The company’s VITAS Healthcare segment showed significant growth, while Roto-Rooter faced a decline.
VITAS Healthcare saw a 17.3% rise in net patient revenue, propelled by a 15.5% increase in its average daily census. This growth was further supported by the acquisition of Covenant Health’s hospice assets, contributing approximately $10 million to $11 million in revenue. In contrast, Roto-Rooter reported a 6.9% decrease in revenue, mainly due to declines in both commercial and residential service segments.
Despite the mixed results, Chemed remained financially robust with no long-term debt, holding $238.5 million in cash and equivalents. The company also continued its share repurchase program, buying back shares worth $57.8 million. Looking forward, Chemed’s management anticipates a full-year earnings increase, driven by VITAS’s continued performance, despite challenges faced by Roto-Rooter.
Chemed’s management remains optimistic about the future, projecting a rise in earnings per share for the full year. They plan to navigate challenges in the plumbing segment while capitalizing on the growth opportunities in the healthcare sector.
