Chemed (NYSE:CHE) Posts Earnings Results, Beats Estimates By $0.35 EPS

Key Points

• Chemed beat expectations, reporting adjusted EPS of $5.65 (about $0.35 above estimates) and raising FY2026 guidance to $24.00–$24.75, driven largely by strength at its VITAS hospice unit.
• Revenue of $657.5 million slightly missed forecasts and the Roto‑Rooter plumbing segment showed weaker results with a ~218‑basis‑point margin decline, while GAAP diluted EPS ($4.84) lagged adjusted figures.
• Shares rose roughly 2.8% after the results; the company repurchased 500,000 shares, paid a $0.60 quarterly dividend (0.6% yield), and the quarter included noted insider selling.

Chemed (NYSE:CHE - Get Free Report) announced its quarterly earnings data on Thursday. The company reported $5.65 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $5.30 by $0.35, FiscalAI reports. The company had revenue of $657.51 million during the quarter, compared to analysts' expectations of $659.22 million. Chemed had a net margin of 10.48% and a return on equity of 25.66%. The business's revenue was up 1.6% on a year-over-year basis. During the same quarter in the prior year, the company posted $5.63 EPS. Chemed updated its FY 2026 guidance to 24.000-24.75 EPS.

Chemed Stock Up 2.8%

Shares of CHE stock opened at $383.42 on Friday. The company has a market capitalization of $5.60 billion, a P/E ratio of 20.87, a P/E/G ratio of 1.48 and a beta of 0.49. Chemed has a 12-month low of $365.20 and a 12-month high of $583.96. The firm has a 50-day moving average price of $404.22 and a 200 day moving average price of $426.40.

Chemed Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Friday, March 13th. Investors of record on Monday, February 23rd were issued a dividend of $0.60 per share. This represents a $2.40 annualized dividend and a yield of 0.6%. The ex-dividend date of this dividend was Monday, February 23rd. Chemed's dividend payout ratio (DPR) is currently 13.06%.

Key Stories Impacting Chemed

Here are the key news stories impacting Chemed this week:

• Positive Sentiment: Raised full‑year guidance — Chemed updated FY2026 EPS guidance to $24.00–$24.75, above Street consensus (~$23.48), signaling stronger-than-expected outlook driven by VITAS. GlobeNewswire: Q1 Results
• Positive Sentiment: Adjusted EPS beat — Chemed reported adjusted EPS of $5.65 vs. consensus ~$5.39, topping estimates and supporting the rally. Zacks: CHE Beats Q1
• Positive Sentiment: Buyback and small M&A — Company repurchased 500,000 shares in Q1 and acquired two Roto‑Rooter franchises for $20.6M, both shareholder-friendly moves that reduce share count and expand core footprint. GlobeNewswire: Q1 Results
• Positive Sentiment: Analyst support and targets remain constructive — Wall Street sentiment and recent price targets (median ~$475; some higher) provide additional backing for the stock post‑print. QuiverQuant: Analyst & Price Target Summary
• Neutral Sentiment: VITAS drove growth — Hospice unit (VITAS) showed modest revenue and census growth (net patient revenue +3.1%, ADC +2.2%, admissions +6.9%), supporting the company’s guidance raise but with limited margin expansion. GlobeNewswire: VITAS Results
• Neutral Sentiment: Operating cash flow strength — Operating cash flow improved materially year‑over‑year, improving financial flexibility even as capex rose to support operations. QuiverQuant: Cash Flow Details
• Negative Sentiment: Roto‑Rooter margin pressure — The plumbing segment saw revenue tick down ~0.9% and adjusted EBITDA decline ~9.6% with a ~218‑bp margin drop, a near‑term headwind to consolidated margins. GlobeNewswire: Roto‑Rooter Results
• Negative Sentiment: GAAP EPS vs. adjusted — GAAP diluted EPS ($4.84) lags adjusted EPS, and some metrics (net income, operating profit) declined year‑over‑year, which could temper enthusiasm if investors focus on GAAP trends. GlobeNewswire: GAAP vs Adjusted
• Negative Sentiment: Insider selling noted — Recent insider sales (including CEO) were reported in the quarter, which some investors track as a cautionary signal. QuiverQuant: Insider Activity

Insiders Place Their Bets

In other Chemed news, CEO Kevin J. Mcnamara sold 2,000 shares of the company's stock in a transaction dated Thursday, March 12th. The shares were sold at an average price of $403.18, for a total transaction of $806,360.00. Following the sale, the chief executive officer directly owned 93,719 shares of the company's stock, valued at approximately $37,785,626.42. This represents a 2.09% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Corporate insiders own 3.29% of the company's stock.

Institutional Trading of Chemed

A number of hedge funds and other institutional investors have recently modified their holdings of the stock. Alberta Investment Management Corp bought a new stake in Chemed in the fourth quarter valued at about $1,241,000. Mercer Global Advisors Inc. ADV boosted its holdings in Chemed by 29.7% during the fourth quarter. Mercer Global Advisors Inc. ADV now owns 2,939 shares of the company's stock worth $1,258,000 after buying an additional 673 shares during the last quarter. EP Wealth Advisors LLC bought a new position in Chemed during the fourth quarter worth about $451,000. Strong Retirement Solutions LLC acquired a new position in shares of Chemed during the 4th quarter worth about $2,571,000. Finally, Cim LLC grew its position in shares of Chemed by 7.0% during the 4th quarter. Cim LLC now owns 2,288 shares of the company's stock worth $979,000 after buying an additional 149 shares during the period. Institutional investors and hedge funds own 95.85% of the company's stock.

Wall Street Analysts Forecast Growth

A number of analysts recently weighed in on the stock. Zacks Research cut shares of Chemed from a "hold" rating to a "strong sell" rating in a research note on Wednesday, March 4th. Jefferies Financial Group downgraded Chemed from a "buy" rating to a "hold" rating in a report on Thursday, January 22nd. Royal Bank Of Canada reaffirmed a "sector perform" rating and set a $422.00 price objective (down from $572.00) on shares of Chemed in a report on Friday, February 27th. Weiss Ratings lowered Chemed from a "hold (c-)" rating to a "sell (d+)" rating in a research note on Monday, April 13th. Finally, Oppenheimer dropped their target price on Chemed from $580.00 to $500.00 and set an "outperform" rating for the company in a report on Friday, February 27th. Two equities research analysts have rated the stock with a Buy rating, two have given a Hold rating and two have assigned a Sell rating to the stock. Based on data from MarketBeat, Chemed currently has a consensus rating of "Hold" and an average price target of $498.00.

About Chemed

Chemed Corporation is a diversified provider of essential home services and healthcare solutions in the United States. Headquartered in Cincinnati, Ohio, the company operates through two principal business segments—Roto-Rooter and Vitas Healthcare. Since its founding in 1974, Chemed has built a reputation for reliability and expertise, serving both residential and commercial customers across a broad range of markets.

The Roto-Rooter segment offers a comprehensive suite of plumbing, drain cleaning and water restoration services.