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Dec 31, 2024
Chemed Q4 2024 Earnings Report
Chemed reported solid Q4 2024 financial results, driven by strong performance in the VITAS segment.
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%.
Revenue by Segment
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.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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