Chemed Corporation Earnings Forecast: Insights Ahead of Report

Anticipating Chemed Corporation's Earnings Report
Chemed CHE is gearing up to unveil its latest quarterly earnings report soon. This announcement is crucial for both current and potential investors as it could significantly influence stock performance.
Analyst Earnings Predictions
Analysts are forecasting that Chemed will report an earnings per share (EPS) of $4.72. Investors are hoping for more than just meeting this estimate; they are eager for positive guidance regarding future earnings.
Why Guidance Matters
It’s important to note that sometimes a company's guidance for upcoming earnings can have a greater impact on stock prices than the earnings results themselves. Investors often look for cues about the company’s growth prospects during these announcements.
Chemed's Earnings Track Record
In their last earnings report, Chemed exceeded EPS forecasts by $0.08, surprisingly leading to a 6.61% decline in the stock price the following day. This highlights an intriguing aspect of market dynamics where beating expectations does not always result in positive stock performance.
Examining Past Performance
Historically, Chemed's earnings have fluctuated, and the following performance reflects this:
Recent EPS Estimates and Results
Here’s a summary of Chemed's past performance in earnings releases:
- Quarter Q1 2025: EPS Estimate: 5.55, EPS Actual: 5.63, Price Change: -7%.
- Quarter Q4 2024: EPS Estimate: 6.78, EPS Actual: 6.83, Price Change: +7%.
- Quarter Q3 2024: EPS Estimate: 5.76, EPS Actual: 5.64, Price Change: -12%.
- Quarter Q2 2024: EPS Estimate: 5.59, EPS Actual: 5.47, Price Change: -1%.
Current Stock Performance Insights
chemed's stocks were priced at $470.72 as of a recent date. Over the past year, the stock has seen a decline of approximately 17.79%. Given these results, long-term shareholders may feel concerned as they approach the company’s next earnings announcement.
Analysts' Perspectives on Chemed
Understanding current market sentiments is vital for making informed investment choices. The latest consensus rating for Chemed suggests a Buy position, based on evaluations from three different analysts. The average target price over the next year is around $596.67, which indicates a possible upside of 26.76%.
Industry Competitor Ratings Comparison
When looking at Chemed's performance in relation to its competitors, several trends emerge:
- Option Care Health: Analysts forecast a potential upside of 91.93% with an average price target of $38.00 and an Outperform rating.
- RadNet: Current projections indicate an 85.34% upside with a Buy rating and a target of $69.00.
- BrightSpring Health: Analysts expect a potential downside of 94.48% while rating an Outperform trajectory with a target price of $26.00.
Chemed's Competitive Standing Among Peers
In a detailed peer analysis, Chemed has some compelling metrics among key industry players:
Company | Consensus | Revenue Growth | Gross Profit | Return on Equity |
---|---|---|---|---|
Chemed | Buy | 9.79% | $216.41M | 6.24% |
Option Care Health | Outperform | 16.31% | $263.05M | 3.39% |
RadNet | Buy | 9.19% | $17.92M | -4.21% |
BrightSpring Health | Outperform | 25.92% | $338.37M | 1.77% |
Exploring Chemed's Corporate Structure
Chemed Corp is engaged in various operational sectors through its subsidiaries, aiming to enhance shareholder value consistently. The primary segments under its operations include VITAS and Roto-Rooter. The VITAS segment is responsible for the majority of revenue, offering hospice and palliative care to terminally-ill patients through its wide range of healthcare professionals. Meanwhile, the Roto-Rooter division provides plumbing, drain cleaning, and related services to both residential and commercial clients.
Financial Insights for Advanced Understanding
Market Capitalization Analysis: Chemed's market capitalization remains below the industry average, suggesting a relatively modest size within the competitive landscape.
Revenue Growth Trends: Chemed's recent financial results indicate a healthy revenue growth rate of 9.79% as of the end of March 2025, reflecting a keen upward trend in earnings.
Profitability Metrics: The company demonstrates notable strong profitability with a net margin of 11.09%, indicating effective cost control.
Return on Equity (ROE): Chemed's ROE is impressive at 6.24%, showing efficient management of shareholder equity.
Asset Management: The firm also exhibits effective asset utilization with a ROA of 4.23%.
Debt Strategy: Chemed’s debt management strategy is prudent, maintaining a below-average debt-to-equity ratio of 0.12, demonstrating a balanced approach.
Frequently Asked Questions
1. When will Chemed report their earnings?
Chemed is set to report its earnings shortly, although the exact date is not specified.
2. What EPS is Chemed projected to achieve?
Analysts predict an EPS of $4.72 for Chemed.
3. How did Chemed's stock perform in the past year?
The stock has decreased approximately 17.79% over the last 52 weeks.
4. What is the average one-year price target for Chemed?
The consensus average target price for Chemed is roughly $596.67.
5. How does Chemed compare to its competitors?
Chemed shows strong revenue growth but ranks lower in return on equity compared to its peers.
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