1 IF D H HT T 100 - 100 1 i T 1 Pgiam/iStock via Getty Images Investment update Following my last publication on Chemed Corporation (NYSE:CHE) the stock is flat, and I am reiterating my buy rating on the stock after its Q2 FY'24 earnings. The last publication, titled "Continues to compound shareholder value at double-digit returns" advocated to size into CHE based on a number of factors, all of which are still relevant today, namely: CHE is a long-term compounder with a cycle of producing high returns on th ...

It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors. Luckily, Zacks Premium offers several different ways to do both. The research service features daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, all of which will help you become a smarter, more confident investor. It also includes access to the Zacks Style Scores ...

Morningstar.com published an interesting piece in July about the long-term health care crisis. It pointed out that Americans paid out $245 billion for long term care to paid caregivers, nursing homes and other forms of paid assistance. That got me thinking about long-term care stocks. There are businesses providing this care both in the home and at nursing homes across the country. The really good operators make money despite the thin margins. If you are far from needing long-term investing time, consider m ...

The research service features daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, all of which will help you become a smarter, more confident investor. The Zacks Style Scores is a unique set of guidelines that rates stocks based on three popular investing types, and were developed as complementary indicators for the Zacks Rank. This combination helps investors choose securities with the highest chances of beating ...

Chemed (CHE) is one such stock that our proprietary system currently recommends. The company not only has a favorable Growth Score, but also carries a top Zacks Rank. Earnings growth is arguably the most important factor, as stocks exhibiting exceptionally surging profit levels tend to attract the attention of most investors. And for growth investors, double-digit earnings growth is definitely preferable, and often an indication of strong prospects (and stock price gains) for the company under consideration ...

For cash, accounts receivable and accounts payable, the carrying amount is a reasonable estimate of fair value because of the liquidity and short-term nature of these instruments. As further described in Note 5, our outstanding long-term debt has a floating interest rate that is reset at short-term intervals, generally 30 or 60 days. The interest rate we pay also includes an additional amount based on our current leverage ratio. As such, we believe our borrowings reflect significant nonperformance risks, ma ...

Financial Data and Key Metrics Changes - Adjusted EBITDA excluding Medicare Cap totaled $67 million in Q2 2024, an increase of 77% compared to the prior year period, with an adjusted EBITDA margin of 17.8%, which is 613 basis points above the prior year [12] - VITAS net revenue was $374.6 million in Q2 2024, a 16.7% increase compared to the prior year, driven by a 14.4% increase in days-of-care and a 2.5% increase in Medicare reimbursement rates [53] - Adjusted EBITDA at Roto-Rooter in Q2 2024 totaled $59.8 million, a decrease of 9.2% compared to the prior year, with an adjusted EBITDA margin of 27% [58] Business Line Data and Key Metrics Changes - VITAS admissions totaled 17,334 in Q2 2024, an 11% increase from the same period in 2023, with average daily census (ADC) expanding to 21,036 patients, a 14.4% increase [62] - Roto-Rooter generated quarterly revenue of $221.3 million in Q2 2024, a decrease of 5% compared to the prior year, with residential revenue declining by 1.6% and commercial revenue declining by 8.2% [18][23] - The Covenant Health acquisition is estimated to contribute approximately $30 million to $32 million to VITAS' full-year revenue [60] Market Data and Key Metrics Changes - The acuity mix shift negatively impacted revenue growth by 112 basis points in Q2 2024 compared to the prior year [22] - Roto-Rooter is forecasted to have a 4% to 5% revenue decline in 2024 compared to 2023 [29] - VITAS is expected to see a revenue increase of 16.3% to 17.3% in 2024 compared to 2023 [27] Company Strategy and Development Direction - The company is focused on expanding its workforce and patient capacity, with VITAS expanding its bedside headcount by 234 licensed professionals in Q2 2024 [31] - Roto-Rooter management is implementing initiatives to improve the commercial sector, including adding commercial sales staff and enhancing customer relationship management capabilities [56] - The company is optimistic about VITAS maintaining above-average historical growth through organic growth and potential acquisitions [37] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in VITAS's ability to continue strong admission and census growth, citing no headwinds from demand for hospice services [40] - The company acknowledged challenges in the commercial sector of Roto-Rooter but believes that retraining efforts will take multiple quarters to yield results [26] - Management noted that the demand for hospice services remains strong, and they are optimistic about future growth opportunities in Florida [47][66] Other Important Information - The company has received a Certificate of Need to provide hospice services in Pasco County, Florida, representing a significant growth opportunity [47] - The retention bonus program in 2023 contributed 397 basis points to the year-over-year improvement in the adjusted EBITDA margin for 2024 [12] - The average length of stay for patients was 100.6 days in Q2 2024, compared to 99.5 days in the same quarter of 2023 [33] Q&A Session Summary Question: Long-term runway for census growth at VITAS - Management believes that as long as they continue to attract and retain staff, there are no limitations on growth, and they do not foresee any demand headwinds for hospice services [40] Question: M&A pipeline opportunities - The company is actively discussing potential acquisitions and is focused on markets where they can efficiently service community needs [97] Question: Roto-Rooter's longer-term growth trajectory - Management views the long-term potential for Roto-Rooter to be in the 5% to 6% range for top-line growth, with price increases and potential acquisitions contributing to this growth [45][101] Question: Trends exiting Q2 for Roto-Rooter - Management anticipates some sequential improvement in the second half of the year, with commercial revenue showing positive momentum [108] Question: Length of stay metrics - Management indicated that while the average length of stay has declined slightly, the median length of stay has increased, reflecting improved patient care [116]

Chemed Corporation (CHE) reported adjusted earnings per share (EPS) of $5.47 in the second quarter of 2024, up 34.1% year over year. However, the figure missed the Zacks Consensus Estimate by 1.3%. The company's GAAP EPS was $4.65, up 32.5% from last year's reported figure. Revenues in Detail Revenues in the reported quarter improved 7.6% year over year to $595.9 million. The metric missed the Zacks Consensus Estimate by 1.2%. Segmental Details Chemed operates through two wholly owned subsidiaries — VITAS ( ...

The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Investors should be m ...

CONTACT: Michael D. Witzeman (513) 762-6714 Changes to Non-GAAP Metrics For the quarter-ended June 30, 2023, the pretax and after-tax Retention Program expense was $12.8 million and $9.7 million, respectively. For the six-months ended June 30, 2023, the pretax and after-tax Retention Program expense was $23.7 million and $18.0 million, respectively. There was no material impact on financial results for the quarter or six months-ended June 30, 2024 as a result of the Retention Program. Roto-Rooter segment op ...