NYSE$CHE

Chemed Corp · Q3 2020 earnings

Q3 2020 earnings · · Investor relations

Briefing

Chemed's Q3 2020 financial results were reported, demonstrating revenue growth and increased earnings per share.

Chemed Corporation reported a 9.9% increase in revenue, reaching $528 million. GAAP diluted EPS increased by 16.3% to $4.14, and adjusted diluted EPS increased by 40.5% to $4.86. The VITAS segment saw a 4.8% increase in net patient revenue, while Roto-Rooter experienced a 20.4% increase in revenue.

  • Chemed's revenue increased by 9.9% to $528 million.
  • GAAP Diluted Earnings-per-Share (EPS) increased by 16.3% to $4.14.
  • VITAS segment net patient revenue increased by 4.8% to $337 million.
  • Roto-Rooter's revenue increased by 20.4% to $191 million.

Headline financials

Total Revenue

$528M

Previous: $481M+9.9%
EPS (adj)

$4.86

Previous: $3.46+40.5%
Average Daily Census

19.0K

Previous: 19.1K-0.2%
VITAS Admissions

17.9K

Previous: 17.1K+4.7%
Capital Expenditures

-$42.7M

Previous: -$39.8M-7.3%
Free Cash Flow

$25.1M

Previous: $19.2M+30.5%
Net Income

$67.7M

Previous: $58.9M+14.9%
Operating Income

$74.3M

Previous: $64.9M+14.4%
Gross Profit

$189M

Previous: $152M+24.0%
Cash & Equivalents

$113M

Previous: $9.07M+1143.8%
Total Assets

$1.37B

Previous: $1.23B+10.9%

Revenue & EPS history

Chemed · Revenue · Quarterly

$528M

Q3 2020+9.9%vs Q3 2019
Beat estimate in 14 of 16 quarters(88%)
ActualEstimate

Revenue by segment

Chemed · $528M total across 2 segments · Q3 2020

  • VITAS Healthcare
    $337M+4.7%
  • Roto-Rooter
    $191M+20.2%

Forward guidance

Chemed provides revenue and adjusted EPS guidance for the full year 2020, with the caveat that the pandemic may materially disrupt the healthcare system and general economy, impacting the ability to achieve this guidance.

Tailwinds

  • VITAS revenue growth for 2020 is estimated to be 4% prior to Medicare Cap.
  • Average Daily Census in 2020 is estimated to expand approximately 1.3%.
  • Full-year Adjusted EBITDA margin for VITAS, prior to Medicare Cap, is estimated to be 21%.
  • Roto-Rooter is forecasted to achieve full-year 2020 revenue growth of 12.5% to 13.0%.
  • Full-year 2020 adjusted earnings per diluted share is estimated to be in the range of $18.00 to $18.15.

Headwinds

  • The 2020 pandemic has made accurate modeling and providing meaningful earnings guidance exceptionally challenging.
  • Governmental decisions have the potential for an immediate and material impact on VITAS and Roto-Rooter operating results.
  • Future rules, regulations, and government mandates could materially impact the ability to achieve the provided guidance.
  • There is an estimated $8.7 million for Medicare Cap billing limitations for calendar year 2020.
  • Chemed’s full year adjusted earnings per share guidance eliminates any financial benefit from the CARES Act funds that relate to lost revenue.

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 Q3 2020

Historical avgQ3 2020

+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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