NYSE$CHE

Chemed Corp · Q2 2024 earnings

Q2 2024 earnings · · Investor relations

Briefing

Chemed's Q2 2024 financial results were reported, demonstrating growth in revenue and adjusted EPS, driven by strong performance in the VITAS segment, offset by a decline in Roto-Rooter's revenue.

Chemed Corporation reported a 7.6% increase in revenue to $595.9 million and a 34.1% increase in adjusted diluted EPS to $5.47 for the second quarter of 2024. The VITAS segment saw a significant revenue increase of 16.7%, while Roto-Rooter experienced a 5.0% revenue decrease.

  • Chemed's revenue increased by 7.6% to $595.9 million, and adjusted diluted EPS increased by 34.1% to $5.47.
  • VITAS segment revenue increased by 16.7% to $374.6 million, with a 14.4% increase in Average Daily Census (ADC).
  • Roto-Rooter segment revenue decreased by 5.0% to $221.3 million, with adjusted EBITDA declining by 9.2%.
  • Upward revision to guidance for 2024, with full-year adjusted earnings per diluted share estimated to be in the range of $23.55 to $23.80.

Headline financials

Total Revenue

$596M

Previous: $554M+7.6%
EPS

$4.65

Previous: $4.71-1.3%
Average Daily Census

21.0K

Previous: 18.4K+14.4%
VITAS Admissions

17.3K

Previous: 15.6K+11.0%
Capital Expenditures

-$23.2M

Previous: -$33.4M+30.5%
Free Cash Flow

$47.7M

Previous: $20M+138.8%
Net Income

$70.9M

Previous: $53.4M+32.8%
Operating Income

$88.1M

Previous: $69.5M+26.8%
Gross Profit

$206M

Previous: $180M+14.8%

Revenue & EPS history

Chemed · Revenue · Quarterly

$596M

Q2 2024+7.6%vs Q2 2023
Beat estimate in 8 of 15 quarters(53%)
ActualEstimate

Revenue by segment

Chemed · $565M total across 2 segments · Q3 2023

  • VITAS Healthcare
    $334M+12.4%
  • Roto-Rooter
    $231M+0.3%

Forward guidance

Chemed provided an upward revision to its 2024 guidance, anticipating increased revenue and adjusted EBITDA margin for VITAS, while Roto-Rooter is expected to have a revenue decline. Full-year 2024 earnings per diluted share are estimated to be in the range of $23.55 to $23.80.

Tailwinds

  • VITAS 2024 revenue, prior to Medicare Cap, is estimated to increase 16.3% to 17.3% when compared to 2023.
  • ADC is estimated to increase 13.3% to 14.4%.
  • Full year adjusted EBITDA margin, prior to Medicare Cap, is estimated to be 19.3% to 19.7%.
  • Covenant Health is estimated to contribute approximately $30 million to $32 million of revenue to VITAS’ full year revenue.
  • Full-year 2024 earnings per diluted share, excluding certain items, is estimated to be in the range of $23.55 to $23.80.

Headwinds

  • Roto-Rooter is forecasted to have a 4.0% to 5.0% revenue decline in 2024 compared to 2023.
  • Roto-Rooter’s adjusted EBITDA margin for 2024 is expected to be 26.5% to 27.0%.
  • We are currently estimating $8.5 million in Medicare Cap billing limitations in calendar 2024.
  • The cost of the retention program negatively impacted VITAS’ 2023 full year adjusted EBITDA by 159 basis points.
  • Chemed’s previously issued 2024 guidance range was $23.30 to $23.70.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2024

Historical avgQ2 2024

+0.7%

Avg return

Earnings day

+0.9%

Avg return

5 days after

+2.1%

Avg return

30 days after

53%

36 / 68 earnings

Positive

+13.0%

Q3 2015

Best reaction

-14.8%

Q4 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-0.4%-0.1%+4.0%
Q4 2025-14.8%-9.1%-21.0%
Q3 2025+6.0%+0.4%+0.1%
Q1 2025-6.6%-1.8%-2.7%
Q4 2024+7.4%+7.7%+11.0%
Q3 2024-12.0%-12.7%-6.2%
Q2 2024-0.1%+2.4%+5.7%
Q1 2024-7.0%-8.1%-9.9%
Q4 2023+5.1%+2.6%+7.3%
Q3 2023+9.3%+10.9%+14.4%
Q2 2023-8.1%-8.0%-10.8%
Q1 2023-3.7%-2.2%-4.1%
Q4 2022+3.3%+1.7%+1.9%
Q3 2022+3.2%+4.1%+12.6%
Q2 2022-6.8%-9.2%-8.3%
Q1 2022-1.4%-1.0%+0.8%
Q4 2021+5.1%+5.8%+3.8%
Q3 2021+9.2%+9.0%+9.4%
Q2 2021-4.4%-0.4%-2.4%
Q1 2021+1.5%+2.3%+6.1%
Q4 2020-0.8%-6.7%-3.9%
Q3 2020+1.2%+3.5%+0.2%
Q2 2020+9.0%+10.3%+12.2%
Q1 2020-3.9%-6.5%+5.6%
Q4 2019+3.2%-1.2%-23.1%
Q3 2019-1.7%+0.6%+5.9%
Q2 2019+3.7%+8.1%+13.9%
Q1 2019-0.6%+0.7%+0.3%
Q4 2018+1.3%+2.8%+1.9%
Q3 2018+6.2%+6.6%+7.6%
Q2 2018+0.4%-2.5%+0.1%
Q1 2018+3.0%+3.3%+13.4%
Q4 2017+2.4%+2.1%+12.9%
Q3 2017+9.1%+5.0%+12.7%
Q2 2017-1.1%-2.3%-6.3%
Q1 2017+10.0%+9.4%+9.0%
Q4 2016+1.9%+2.0%+9.1%
Q3 2016-0.3%+1.8%+6.3%
Q2 2016+5.0%+3.0%-7.9%
Q1 2016-6.7%
Q4 2015-5.6%
Q3 2015+13.0%
Q2 2015+5.1%
Q1 2015-4.7%
Q4 2014+7.5%
Q3 2014-1.2%
Q2 2014+4.3%
Q1 2014-3.3%
Q4 2013+10.5%
Q3 2013-5.2%
Q2 2013-7.3%
Q1 2013+3.4%
Q4 2012+4.9%
Q3 2012-2.0%
Q2 2012+5.1%
Q1 2012+2.9%
Q4 2011+0.0%
Q3 2011+1.5%
Q2 2011-5.8%
Q1 2010-2.6%
Q1 2011+1.8%
Q4 2008-1.6%
Q4 2010-1.6%
Q3 2009+1.4%
Q3 2010+1.4%
Q2 2010-0.9%
Q2 2009-0.9%
Q4 2009-0.9%

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