Chemed(US:CHE) ZACKS·2024-10-30 15:20Core Insights - Chemed Corporation reported third-quarter 2024 adjusted earnings per share (EPS) of $5.64, a 6% increase year over year, but missed the Zacks Consensus Estimate by 2.1% [1] - The company's GAAP EPS was $5.00, reflecting a 1.4% increase from the previous year [1] - Revenues for the quarter improved by 7.4% year over year to $606.2 million, but also missed the Zacks Consensus Estimate by 1.1% [2] Revenue Breakdown - VITAS segment net revenues reached $391.4 million, up 17.3% year over year, driven by a 15.5% increase in days of care and a nearly 2.6% rise in the Medicare reimbursement rate [4] - Roto-Rooter segment reported sales of $214.8 million, down 6.9% year over year, with declines in various service categories [4][5] Margin Analysis - Gross profit increased by 3.9% year over year to $210 million, but gross margin contracted by 117 basis points to 34.6% due to a 9.3% rise in service costs [6] - SG&A expenses rose by 2.4% year over year to $102 million, while adjusted operating profit increased by 22.7% to $108 million, with adjusted operating margin contracting by 35 basis points to 17.8% [6] Liquidity and Capital Structure - Chemed ended the quarter with cash and cash equivalents of $238.5 million, up from $222.9 million at the end of the previous quarter, and had no current or long-term debt [7] - Cumulative net cash from operating activities was $252.6 million, compared to $221.7 million in the prior year [7] Share Repurchase and Dividends - The company repurchased 100,000 shares for $57.8 million, averaging $578.2 per share, with approximately $168.1 million remaining under its share repurchase authorization [8] - Chemed has a consistent dividend-paying history, with a five-year annualized dividend growth of 5.51% [8] Guidance and Outlook - Chemed maintained its 2024 revenue guidance for VITAS, expecting a revenue increase of 16.3-17.3% compared to the previous year [9] - The updated adjusted EPS outlook for 2024 is now in the range of $23.00-$23.15, down from the previous estimate of $23.55-$23.80, with the Zacks Consensus Estimate at $23.58, indicating a 16.2% growth over 2023 [10]