Investors might want to bet on Chemed (CHE) , as it has been recently upgraded to a Zacks Rank #2 (Buy). This upgrade is essentially a reflection of an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices.The Zacks rating relies solely on a company's changing earnings picture. It tracks EPS estimates for the current and following years from the sell-side analysts covering the stock through a consensus measure -- the Zacks Consensus Estimate.Since a changing earnings p ...

CINCINNATI, Dec. 04, 2025 (GLOBE NEWSWIRE) -- Chemed Corporation (NYSE:CHE) today announced that it will present at the BofA Securities 2025 Virtual Home Care Conference on Tuesday, December 9, 2025, at 1:20 PM (ET). The presentation will be webcast live and can be accessed, along with the presentation materials, through the Chemed website at www.chemed.com (Investor Relations). The webcast replay will be available within 24 hours of the live presentation and will be accessible for 90 days. Listed on the Ne ...

Core Viewpoint - The company expresses optimism about future performance despite challenges faced in the second quarter, particularly for VITAS and Roto-Rooter [1] Company Performance - The second quarter of the year was challenging for both VITAS and Roto-Rooter, but the company remains confident in overcoming past issues, specifically the Florida Medicare Cap problems anticipated in 2025 [1] - Roto-Rooter has faced intense competition in recent years, but there are signs of improvement in the competitive environment, which the company plans to leverage over the next 12 to 18 months [1]

Chemed (NYSE:CHE) 2025 Conference Summary Company Overview - Chemed operates two distinct service businesses: VITAS (hospice provider) and Roto-Rooter (plumbing and drain care) [4][5] - The company has experienced consistent net income growth of 11% to 12% per annum over the past 20 years [5] - Chemed has utilized free cash flow to repurchase over $2 billion of its stock, reducing shares outstanding from approximately 27 million to just under 15 million [6] Financial Performance and Challenges - The second quarter of 2025 was challenging for both VITAS and Roto-Rooter, with VITAS facing Medicare cap issues in Florida [3][12] - VITAS had to return approximately $18.9 million to the government due to exceeding Medicare billing limitations [11][12] - Roto-Rooter faced increased competition, particularly from private equity-backed companies, affecting its market position and advertising costs [10][30] Growth Strategy - Chemed's growth strategy focuses on organic growth rather than acquisitions, leveraging strong cash flow from both businesses [5][11] - The company aims to return to pre-pandemic growth levels, targeting high single-digit growth rates for VITAS [69][78] - The hospice market is projected to grow 8-10% annually due to the aging baby boomer population [77][79] VITAS Performance - VITAS has seen a recovery in patient census, returning to pre-pandemic levels after workforce disruptions during the pandemic [7][64] - The company is strategically managing admissions to balance Medicare cap limitations, with expectations of improved performance in 2026 [15][66] - The average daily census (ADC) increased by 2.5%, with total admissions up 5.6% year-over-year [64][65] Roto-Rooter Performance - Roto-Rooter has experienced a decline in phone calls and leads due to increased competition and higher advertising costs [31][32] - The company is adapting its marketing strategy to focus more on commercial business, which has shown promising growth [89][90] - Roto-Rooter is expanding its commercial business manager program, which has resulted in a 20% revenue increase in branches where it has been implemented [92][94] Labor and Operational Insights - Chemed has successfully managed labor turnover, with rates now better than pre-pandemic levels [81][82] - Average wage increases have been around 3% to mid-threes, and the company has been recognized as a best workplace in healthcare for 2025 [85][88] - The company does not anticipate labor shortages impacting operations in 2026 [80] Market Outlook - Chemed expects to achieve a balanced growth trajectory for both VITAS and Roto-Rooter, with a focus on maintaining a healthy mix of short-stay and long-stay patients [79][80] - The company is optimistic about returning to historical growth rates and addressing competitive challenges effectively [50][51] Conclusion - Chemed is navigating through post-pandemic recovery with a focus on returning to consistent growth across its two business segments, while addressing competitive pressures and operational challenges [3][10][12]

Core Viewpoint - Chemed (CHE) has shown a recent price increase and analysts suggest significant upside potential based on price targets, with a mean target indicating a 32.7% increase from the current price [1][2]. Price Targets and Analyst Estimates - The mean price target for CHE is $578.5, with a standard deviation of $19.97, indicating a consensus among analysts [2]. - The lowest price target is $550.00, suggesting a 26.2% increase, while the highest target is $595.00, indicating a potential 36.5% increase [2]. - A low standard deviation among price targets suggests strong agreement among analysts regarding the stock's price direction [9]. Earnings Estimates and Analyst Sentiment - Analysts have shown optimism regarding CHE's earnings prospects, with a positive trend in earnings estimate revisions [4][11]. - Over the last 30 days, two earnings estimates have been revised upward, leading to a 1.9% increase in the Zacks Consensus Estimate [12]. - CHE holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate factors [13]. Investment Considerations - While price targets are a common metric, relying solely on them for investment decisions may not be prudent due to potential biases in analyst estimates [3][10]. - The correlation between earnings estimate revisions and stock price movements suggests that the direction indicated by price targets may be a useful guide for further research [11][14].

Core Points - Chemed Corporation has declared a quarterly cash dividend of 60 cents per share, payable on December 5, 2025, to shareholders of record as of November 17, 2025, maintaining the same dividend as in August 2025 [1] - This marks the 218th consecutive quarterly dividend paid by Chemed in its 54 years as a public company [1] Company Overview - Chemed Corporation is listed on the New York Stock Exchange and is headquartered in Cincinnati, Ohio [2] - The company operates two wholly owned subsidiaries: VITAS Healthcare, the largest provider of end-of-life hospice care in the nation, and Roto-Rooter, the leading provider of plumbing and drain cleaning services in the nation [2]

Core Viewpoint - Chemed Corporation will present at the UBS 2025 Global Healthcare Conference on November 11, 2025, at 2:00 p.m. ET [1] Company Overview - Chemed Corporation is listed on the New York Stock Exchange and is headquartered in Cincinnati, Ohio [3] - The company operates two wholly owned subsidiaries: VITAS Healthcare, the largest provider of end-of-life hospice care in the nation, and Roto-Rooter, the leading provider of plumbing and drain cleaning services [3] Presentation Details - The presentation will be webcast live and accessible through the Chemed website, with a replay available within 24 hours for 90 days [2]

Company Overview - Chemed Corporation operates two primary segments: VITAS, which provides hospice and palliative care services, and Roto-Rooter, offering plumbing, drain cleaning, and water restoration solutions [4][5] - The company generates revenue through direct service delivery to patients and customers via company-owned branches, independent contractors, and franchisees [4][5] - Chemed's primary customers include patients requiring end-of-life care and residential or commercial clients needing plumbing and related services across the United States [5] Financial Performance - For the trailing twelve months (TTM), Chemed reported revenue of $2.53 billion and net income of $278.81 million [3] - The company's dividend yield stands at 0.44% as of October 28, 2025 [3] - As of October 28, 2025, Chemed shares were priced at $438.94, reflecting a 27.91% decline over the past year and underperforming the S&P 500 by 45.55 percentage points [2] Recent Developments - Schwartz Investment Counsel reduced its position in Chemed by 28,771 shares, valued at approximately $13.03 million, bringing its stake down to 1.67% of reportable assets from 2.24% in the previous quarter [1][2] - Chemed's stock was demoted from the 11th-largest holding to the 17th place in Schwartz's portfolio by the end of September 2025 [6] - The hospice segment experienced a decline in adjusted EBITDA by 3.8% to $70.4 million, despite a 2.98% year-over-year increase in average revenue per day [8] - The Roto-Rooter segment's revenue grew by 1.1% year over year, but adjusted EBITDA declined by 12.4% [9]

Financial Performance - For the three months ended September 30, 2025, consolidated service revenues increased by 3.1% to $624.9 million compared to $606.2 million in the same period of 2024[123]. - Net income for the third quarter of 2025 was $64.2 million, down from $75.8 million in the third quarter of 2024, representing a decrease of 15.5%[110]. - Adjusted EBITDA for the third quarter of 2025 was $109.0 million, which is 17.4% of revenue, compared to $123.0 million or 20.3% of revenue in the same quarter of 2024[110]. - Total revenues for the first nine months of 2025 were $1,890,641,000, a 5.5% increase from $1,791,294,000 in the same period of 2024[136]. - Net income for the first nine months of 2025 was $188,487,000, a decrease of 10.9% from $211,680,000 in 2024[143]. - The net income for the third quarter of 2025 was $64,237,000, compared to $75,776,000 in the third quarter of 2024[149]. - Net income for the nine months ended September 30, 2024, was $211,680, compared to $188,487 for the same period in 2025, reflecting a decrease of approximately 8.5%[157]. Revenue Sources - VITAS experienced a 4.2% increase in service revenues driven by a 2.5% increase in days-of-care and a 4.1% increase in Medicare reimbursement rates[111]. - Roto-Rooter saw a 1.1% increase in service revenues, primarily due to growth in plumbing, excavation, and water restoration services[111]. - VITAS service revenues increased by $91.4 million, with routine homecare revenue rising by 10.7% to $1,072,014,000[136]. - Total service revenues and sales for the first nine months of 2025 were $1,890,641,000, an increase from $1,800,000,000 in 2024[152]. Expenses and Costs - SG&A expenses for Q3 2025 totaled $105,775,000, up 6.5% from $101,981,000 in Q3 2024, with $2.7 million attributed to a severance accrual and $2.3 million increase in legal expenses[128]. - SG&A expenses for the first nine months of 2025 totaled $311,685,000, down from $320,109,000 in 2024, with a 4.8% increase in expenses before long-term incentive compensation[140]. - Total costs and expenses for the first nine months of 2025 were $1,653,049,000, compared to $1,514,000,000 in 2024[152]. Margins and Profitability - The gross margin for the consolidated company decreased to 31.5% in Q3 2025 from 34.6% in Q3 2024, with VITAS' gross margin declining to 21.3% from 24.6%[127]. - The consolidated gross margin for the first nine months of 2025 was 31.6%, down from 34.6% in the same period of 2024, with VITAS' gross margin declining to 21.2%[139]. - VITAS' after-tax earnings as a percentage of revenue decreased to 11.5% in Q3 2025 from 13.7% in Q3 2024, impacted by a $3.8 million increase in Medicare Cap liability[132]. - Roto-Rooter's net income for the first nine months of 2025 was $103,928,000, compared to $119,326,000 in 2024, with after-tax earnings as a percent of revenue decreasing to 15.3% from 17.8%[144]. Compliance and Financial Health - As of September 30, 2025, the company had approximately $404.5 million of unused lines of credit available under its revolving credit facility[118]. - The company anticipates that operating income and cash flows will be sufficient to meet business commitments for the foreseeable future[116]. - The company is in compliance with all financial covenants as of September 30, 2025, and expects to remain compliant in the future[119]. Other Income and Taxation - Other income for Q3 2025 was $9,251,000, slightly down from $9,299,000 in Q3 2024, primarily due to a decrease in interest income[129]. - The effective tax rate for Q3 2025 was 23.1%, compared to 25.0% in Q3 2024, with total income tax provision decreasing to $19,307,000 from $25,253,000[130]. - Other income for the first nine months of 2025 was $13,970,000, significantly lower than $28,008,000 in 2024, primarily due to a decrease in interest income[141]. Operational Metrics - Homecare net revenue for Q3 2025 was $362,405,000, an increase of 7.1% from $338,344,000 in Q3 2024[162]. - The average daily census for homecare increased to 18,325 days in Q3 2025, compared to 17,639 days in Q3 2024, reflecting a growth of 3.9%[162]. - Total admissions for the nine months ended September 30, 2025, were 53,398, a rise of 4.7% from 51,020 in the same period of 2024[162]. - The average length of stay increased to 121.9 days for the nine months ended September 30, 2025, compared to 102.2 days in the same period of 2024[162]. Debt and Interest Rate Management - The company had no variable rate debt outstanding as of September 30, 2025, mitigating interest rate risk exposure[164]. - For each $10 million borrowed under the credit facility, a 100 basis points change in interest rates would affect annual interest expense by $100,000[164]. - The company is continuously evaluating interest rate exposure and considering hedging techniques to manage risks[165].

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