NYSE$CHE

Chemed Corp · Q3 2021 earnings

Q3 2021 earnings · · Investor relations

Briefing

Chemed's Q3 2021 performance reflected a mix of challenges and growth, with revenue increase driven by Roto-Rooter's strong performance offsetting a decline in VITAS' revenue, and adjusted EPS showing a modest increase.

Chemed Corporation reported a 2.0% increase in revenue to $539 million. GAAP diluted EPS increased by 9.9% to $4.55, and adjusted diluted EPS increased by 4.1% to $5.06. The VITAS segment experienced a revenue decline, while Roto-Rooter demonstrated strong revenue growth.

  • Consolidated revenue increased by 2.0% to $539 million.
  • GAAP diluted EPS increased by 9.9% to $4.55.
  • Adjusted diluted EPS increased by 4.1% to $5.06.
  • Roto-Rooter's revenue increased by 15.7%, offsetting a decline in VITAS' revenue.

Headline financials

Total Revenue

$539M

Previous: $528M+2.0%
EPS (adj)

$5.06

Previous: $4.86+4.1%
Average Daily Census

18.0K

Previous: 19.0K-5.3%
VITAS Admissions

17.6K

Previous: 17.9K-1.9%
Capital Expenditures

-$44.5M

Previous: -$42.7M-4.2%
Free Cash Flow

$27.5M

Previous: $25.1M+9.9%
Net Income

$72M

Previous: $67.7M+6.3%
Operating Income

$92.9M

Previous: $74.3M+25.0%
Gross Profit

$197M

Previous: $189M+3.9%
Cash & Equivalents

$29M

Previous: $113M-74.3%
Total Assets

$1.32B

Previous: $1.37B-3.6%

Revenue & EPS history

Chemed · Revenue · Quarterly

$539M

Q3 2021+2%vs Q3 2020
Beat estimate in 11 of 16 quarters(69%)
ActualEstimate

Revenue by segment

Chemed · $538M total across 2 segments · Q3 2021

  • VITAS Healthcare
    $317M-5.9%
  • Roto-Rooter
    $221M+15.7%

Forward guidance

Chemed anticipates full-year 2021 adjusted earnings per diluted share to be in the range of $19.00 to $19.20, compared to the initial guidance of $17.00 to $17.50. This revised guidance assumes an effective corporate tax rate on adjusted earnings of 25.1%. VITAS revenue is estimated to decline approximately 5%, and Roto-Rooter is forecasted to achieve full-year 2021 revenue growth of 17.3%.

Tailwinds

  • Full-year 2021 adjusted earnings per diluted share are estimated to be in the range of $19.00 to $19.20.
  • The revised guidance is higher than the initial 2021 adjusted earnings per diluted share guidance of $17.00 to $17.50.
  • Roto-Rooter is forecasted to achieve full-year 2021 revenue growth of 17.3%.
  • Roto-Rooter’s Adjusted EBITDA margin for 2021 is estimated to be between 28.5% to 29.0%.
  • The company has successfully navigated within the rapidly changing environment during the pandemic.

Headwinds

  • VITAS 2021 revenue, prior to Medicare Cap, is estimated to decline approximately 5% when compared to the prior year.
  • Average Daily Census in 2021 is estimated to decline approximately 5.5%.
  • Full-year Adjusted EBITDA margin, prior to Medicare Cap, is estimated to be 18.8%.
  • The pandemic will continue to disrupt the healthcare system and general economy.
  • Future rules, regulations, and government mandates could materially impact the company’s ability to achieve the guidance.

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 2021

Historical avgQ3 2021

+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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