Chemed Q2 revenue misses expectations

Reuters
30 Jul
Chemed <a href="https://laohu8.com/S/QTWO">Q2</a> revenue misses expectations

Overview

  • Chemed Q2 2025 revenue rises 3.8% but misses analyst expectations, per LSEG data

  • Adjusted EPS for Q2 2025 falls 21.9% and misses estimates, per LSEG data

  • Co announces departure of unit VITAS' CEO Nicholas M. Westfall, effective Dec 1, 2025

Outlook

  • Chemed revises 2025 EPS guidance to $22.00-$22.30, down from $24.95-$25.45

  • VITAS expects 2025 revenue to grow 7.5%-8.5% before Medicare Cap

  • Roto-Rooter forecasts 2025 revenue increase of 1.25%-1.75%

  • Chemed estimates $28.2 mln in 2025 Medicare Cap billing limitations

Result Drivers

  • VITAS REVENUE GROWTH - Driven by 6.1% increase in days-of-care and 4.2% rise in Medicare reimbursement rates

  • MEDICARE CAP IMPACT - Revenue growth negatively affected by Medicare Cap billing limitations, totaling $16.4 mln in Q2

  • ROTO-ROOTER SLUGGISH GROWTH - Revenue rose only 0.6% with declines in plumbing and drain cleaning services

Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q2 Revenue

Miss

$618.80 mln

$628.60 mln (4 Analysts)

Q2 Adjusted EPS

Miss

$4.27

$4.98 (3 Analysts)

Q2 EPS

$3.57

Q2 Net Income

$52.49 mln

Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", 1 "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 $645.00, about 27.7% above its July 28 closing price of $466.08

  • The stock recently traded at 18 times the next 12-month earnings vs. a P/E of 24 three months ago

Press Release: ID:nBw6z9BKWa

(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.)

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