Chemed Q3 adjusted EPS beats estimates on VITAS patient growth

Overview

• US hospice and plumbing firm's Q3 revenue rose 10.6%, a slight beat of analyst expectations

• Adjusted EPS for Q3 climbed 28.1%, beating analyst consensus

• Company repurchased $66 mln in stock during the quarter

Outlook

• Company expects full-year 2026 adjusted EPS at or slightly above the high end of its prior guidance

Result Drivers

• VITAS PATIENT GROWTH - Co said higher days-of-care and increased admissions drove VITAS segment revenue up 12.2% in Q3

• MEDICARE REIMBURSEMENT - Co said a 2.2% rise in Medicare reimbursement rates contributed to VITAS segment revenue growth

• ROTO-ROOTER COMMERCIAL DEMAND - Co said commercial branch revenue rose 9% in Q3, led by water restoration up 30.7%

Company press release:

Key Details

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "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 Corporation is $550.00, about 7.2% above its October 26 closing price of $512.90

• The stock recently traded at 19 times the next 12-month earnings vs. a P/E of 18 three months ago

Reuters Recommended Reads

• Oct 27 - HCA Healthcare Q3 revenue rises on admissions, emergency room visits growth

• Oct 27 - Centene Q3 revenue tops estimates on Medicare growth

• Oct 27 - Healthcare data firm IQVIA Q3 revenue beats on strong bookings

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(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.)