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Sep 30, 2022
Chemed Q3 2022 Earnings Report
Chemed reported a decline in revenue but an increase in adjusted EPS guidance for 2022.
Key Takeaways
Chemed Corporation reported third-quarter 2022 results, with revenue declining by 2.3% to $526 million. GAAP diluted EPS was $3.78, and adjusted diluted EPS decreased by 6.3% to $4.74. The company increased its 2022 earnings guidance.
Consolidated revenue decreased by 2.3% to $526 million.
GAAP diluted EPS was reported as $3.78.
Adjusted diluted EPS decreased by 6.3% to $4.74.
Roto-Rooter's revenue increased by 3.9% to $230 million.
Chemed
Chemed
Chemed Revenue by Segment
Chemed Revenue by Geographic Location
Revenue by Segment
VITAS Revenue
CapyFin.comRoto-Rooter Revenue
CapyFin.comRevenue by Geographic Location
United States Revenue
CapyFin.com Forward Guidance
Full-year 2022 earnings per diluted share, excluding certain items, is estimated to be in the range of $19.60 to $19.70.
Positive Outlook
- Roto-Rooter is forecasted to achieve full-year 2022 revenue growth of 6.2% to 6.5%.
- Roto-Rooter’s adjusted EBITDA margin for 2022 is expected to be 29.5% to 29.7%.
- Previous 2022 adjusted earnings per share guidance of $19.30 to $19.50 was increased.
- Chemed has been able to successfully navigate within this rapidly changing environment.
- Undrawn borrowing capacity under credit agreement is approximately $401 million.
Challenges Ahead
- VITAS 2022 revenue, prior to Medicare Cap, is estimated to decline 4.5% to 5.0% when compared to 2021.
- ADC is estimated to decline 3.4%.
- Full year adjusted EBITDA margin, prior to Medicare Cap, is estimated to be 17.1% to 17.2%.
- We are currently estimating $8.1 million for Medicare Cap billing limitations in calendar year 2022.
- COVID-19 pandemic, uncertainty regarding forward looking inflation, and a potential economic recession, has made accurate modeling and providing meaningful earnings guidance exceptionally challenging.
Revenue & Expenses
Visualization of income flow from segment revenue to net income