Chemed Corporation (NYSE: CHE) reported Q2 EPS of $5.47, $0.12 worse than the analyst estimate of $5.59. Revenue for the quarter came in at $595.9 million versus the consensus estimate of $599.2 million.

GUIDANCE:

Chemed Corporation sees FY2024 EPS of $23.55-$23.80, versus the consensus of $23.21.

Upward Revision to Guidance for 2024

VITAS 2024 revenue, prior to Medicare Cap, is estimated to increase 16.3% to 17.3% when compared to 2023. ADC is estimated to increase 13.3% to 14.4%. Full year adjusted EBITDA margin, prior to Medicare Cap, is estimated to be 19.3% to 19.7%. We are currently estimating $8.5 million in Medicare Cap billing limitations in calendar 2024. The cost of the retention program negatively impacted VITAS’ 2023 full year adjusted EBITDA by 159 basis points.

Covenant Health is estimated to contribute approximately $30 million to $32 million of revenue to VITAS’ full year revenue. There is no estimated Medicare Cap billing limitation expected related to Covenant Health. This translates into adjusted net income attributable to Covenant Health of $5.5 million to $6.0 million and adjusted EBITDA of $8.0 million to $8.5 million.

Roto-Rooter is forecasted to have a 4.0% to 5.0% revenue decline in 2024 compared to 2023. Roto-Rooter’s adjusted EBITDA margin for 2024 is expected to be 26.5% to 27.0%.

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