Chemed Q2 revenue beats estimates, helped by VITAS segment growth

Overview

• US hospice and plumbing firm's Q2 revenue rose 8.8%, beating analyst expectations

• Adjusted EPS for Q2 beat consensus, rising 41.9% yr/yr

• Company repurchased 210,000 shares for $89.8 mln in Q2

Outlook

• Chemed raises full-year 2026 adj EPS guidance to $25.00-$25.75 from $24.00-$24.75

• Company lifts VITAS full-year ADC growth guidance to 5.75%-6.25% from 4.5%-5.5%

• Roto-Rooter full-year revenue growth guidance unchanged at 3.0%-3.5%

Result Drivers

• VITAS PATIENT GROWTH - VITAS revenue rose mainly due to a 6.1% increase in days-of-care and a 9.0% rise in admissions

• MEDICARE CAP IMPACT - Lower Medicare Cap billing limitation boosted VITAS revenue growth by 455 basis points

• ROTO-ROOTER COMMERCIAL GROWTH - Roto-Rooter commercial revenue rose 6.8%, led by plumbing and drain cleaning services

Company press release: ID:nGNX1g9kGg

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 1 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the healthcare facilities services peer group is "buy"

• Wall Street's median 12-month price target for Chemed Corp is $475.00, about 6.7% below its July 27 closing price of $509.34

• The stock recently traded at 20 times the next 12-month earnings vs. a P/E of 15 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)