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Sep 30, 2024
Chemed Q3 2024 Earnings Report
Chemed's Q3 2024 performance was marked by revenue growth and increased EPS, driven by strong VITAS segment results, while Roto-Rooter experienced a revenue decrease.
Key Takeaways
Chemed Corporation reported a 7.4% increase in revenue to $606.2 million for Q3 2024. GAAP diluted EPS increased by 1.4% to $5.00, and adjusted diluted EPS rose by 6.0% to $5.64. The VITAS segment saw a 17.3% increase in net patient revenue, while Roto-Rooter's revenue decreased by 6.9%.
Consolidated revenue increased by 7.4% to $606.2 million.
GAAP diluted EPS increased by 1.4% to $5.00, while adjusted diluted EPS increased by 6.0% to $5.64.
VITAS net patient revenue increased by 17.3%, with a 15.5% increase in average daily census.
Roto-Rooter revenue decreased by 6.9%, with a decline in both commercial and residential revenue.
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
Chemed provided its full-year consolidated 2024 earnings per diluted share guidance, excluding certain non-cash expenses and discrete items, is estimated to be in the range of $23.00 to $23.15.
Positive Outlook
- VITAS continues to perform as anticipated.
- Full-year consolidated 2024 earnings per diluted share is estimated to be in the range of $23.00 to $23.15.
- The estimated EPS range represents a 13.3% to 14.0% increase from Chemed’s 2023 reported adjusted earnings per diluted share of $20.30.
- Guidance assumes an effective corporate tax rate on adjusted earnings of 24.3%.
- Guidance assumes a diluted share count of 15.22 million shares.
Challenges Ahead
- Roto-Rooter’s revenue was softer than anticipated during the third quarter of 2024.
- Roto-Rooter's resulting adjusted EBITDA was softer than anticipated during the third quarter of 2024.
- Roto-Rooter's resulting adjusted net income was softer than anticipated during the third quarter of 2024.
- Admissions were negatively impacted during the quarter by approximately 60-100 patients due to Hurricane Helene.
- The Florida admission impact will be more significant in the fourth quarter with the combination of Hurricanes Helene and Milton.
Revenue & Expenses
Visualization of income flow from segment revenue to net income