Chemed Corporation (CHE) Tops Q3 EPS by 42c; offers guidance

Chemed Corporation (NYSE: CHE) reported Q3 EPS of $5.32, $0.42 better than the analyst estimate of $4.90. Revenue for the quarter came in at $565 million versus the consensus estimate of $558.42 million.

GUIDANCE:

Chemed Corporation sees FY2023 EPS of $19.82-$20.02, versus the consensus of $19.98. This guidance includes $1.18 per share of after-tax costs related to the 2023 portion of the Retention Program.

VITAS 2023 revenue, prior to Medicare Cap, is estimated to increase 9.3% to 9.5% when compared to 2022. Forecasted revenue growth is negatively impacted by 75-basis points as a result of the sequestration relief in the first half of 2022 compared to a full year of sequestration in 2023. ADC is estimated to increase 7.3% to 7.5%. Full year adjusted EBITDA margin, prior to Medicare Cap, is estimated to be 15.4% to 15.7%. The total pretax cost of the Retention Program in 2023 is estimated at $23.8 million, reducing adjusted EBITDA margin by 180-basis points. We are currently estimating $8 million for Medicare Cap billing limitations in calendar year 2023.

Roto-Rooter is forecasted to achieve full-year 2023 revenue growth of 1.6% to 2.0%. Roto-Rooter’s adjusted EBITDA margin for 2023 is expected to be 28.4% to 28.6%.

For earnings history and earnings-related data on Chemed Corporation (CHE) click here.

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