Chemed Corporation reports results for the quarter ended September 30 - Earnings Summary

What happened

Chemed Corporation reported quarterly adjusted earnings of $6.75 per share, above analyst expectations of $6.44 and last year's $5.27. Revenue rose 10.6% to $690.94 million, beating the expected $685.04 million. Reported EPS was $5.45 and net income was $71.65 million.

Confirmed

Global impact / market context

Higher earnings than analysts expected show the company kept more profit per sale and controlled costs, which can support the share price. The gap between adjusted and reported profit per share signals costs excluded from the adjusted figure, so investors should check what those items are.

Analyst inference

Analysts rate the stock a buy and the median 12-month price target is $550.00, about 7.4% above the last close of $509.09. A buy rating means most analysts expect the shares to perform well from here.

Analyst inference

What to watch

1. The average analyst rating is buy, split into 2 buy or strong buy and 3 hold, with no sell ratings, matching the healthcare facilities and services peer group average of buy. Confirmed
2. Watch whether analysts revise earnings estimates in coming weeks, since the mean estimate rose about 6.9% over three months but had no revisions in the last 30 days. Proposed
3. Compare adjusted earnings of $6.75 per share with reported EPS of $5.45 to see which costs were excluded, because wider gaps can mean less reliable recurring profit. Analyst inference

Evidence

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