Chemed Corporation (NYSE: CHE) reported Q2 EPS of $2.15, $0.26 better than the analyst estimate of $1.89. Revenue for the quarter came in at $415 million versus the consensus estimate of $407.04 million.

Consolidated operating results:

• Revenue increased 6.3% to $415 million
• GAAP Loss-per-Share of ($1.35) which includes ($3.49) for potential litigation settlement
• Adjusted Diluted EPS increased 19.4% to $2.15

Updated Guidance for 2017

Revenue growth for VITAS in 2017, prior to Medicare Cap, is estimated to be in the range of 2% to 3%. Admissions and Average Daily Census in 2017 are estimated to expand approximately 3% to 5% and full-year Adjusted EBITDA margin, prior to Medicare Cap, is estimated to be 15.0% to 15.5%. We are currently estimating $2.5 million for Medicare Cap billing limitations in the 2017 calendar year.

Roto-Rooter is forecasted to achieve full-year 2017 revenue growth of 12% to 13%. This revenueestimate is based upon increased job pricing of approximately 2% and continued growth in water restoration services. Adjusted EBITDA margin for 2017 is estimated in the range of 22.0% to 22.5%.

Based upon the above, full-year 2017 adjusted earnings per diluted share, excluding non-cash expense for stock options, costs related to litigation, and other discrete items, is estimated to be in the range of $8.10 to $8.20. This compares to Chemed’s 2016 reported adjusted earnings per diluted share of $7.24.

GUIDANCE:

Chemed Corporation sees FY2017 EPS of $8.10-$8.20, versus the consensus of $7.95.

For earnings history and earnings-related data on Chemed Corporation (CHE) click here.