Chemed Q4 2024 Earnings Report
Key Takeaways
Chemed Corporation reported Q4 2024 revenue of $640.0 million, an increase of 9.2% year-over-year. Net income attributable to common stock was $90.3 million, with EPS of $6.02 and adjusted EPS of $6.83. VITAS segment revenue grew 17.4%, while Roto-Rooter saw a slight revenue decline. Free cash flow remained strong, and the company repurchased shares worth $212.8 million.
Revenue increased 9.2% to $640.0 million.
Net income attributable to common stock was $90.3 million.
EPS reached $6.02, with adjusted EPS at $6.83.
VITAS revenue grew 17.4%, while Roto-Rooter declined 2.9%.
Chemed Revenue
Chemed EPS
Chemed Revenue by Segment
Chemed Revenue by Geographic Location
Forward Guidance
Chemed anticipates continued growth in 2025, with VITAS revenue expected to rise by 10.5% to 11.3% and Roto-Rooter revenue projected to grow by 2.4% to 3.0%. Adjusted EPS is estimated to be between $24.95 and $25.45.
Positive Outlook
- VITAS revenue expected to grow between 10.5% and 11.3%.
- Roto-Rooter revenue projected to increase between 2.4% and 3.0%.
- Expected full-year adjusted EBITDA margin of 18.4% to 18.9% for VITAS.
- Medicare Cap billing limitations estimated at $9.5 million.
- Strong share repurchase program with $255.3 million remaining authorization.
Challenges Ahead
- Medicare Cap rate increase lower than reimbursement rate increase, reducing cushion.
- Roto-Rooter revenue growth expected to be slower in early 2025.
- Higher costs expected due to ongoing expansion in VITAS.
- Potential impact from labor market constraints in healthcare and plumbing sectors.
- Economic uncertainty may impact demand for non-essential services.