Chemed (NYSE:CHE) Posts Earnings Results, Beats Estimates By $0.36 EPS

Key Points

• Chemed beat quarterly expectations: EPS came in at $6.75, $0.36 above estimates, while revenue of $690.94 million also exceeded the $685.04 million consensus.
• The company raised its quarterly dividend to $0.70 from $0.60, equivalent to $2.80 annually and a 0.6% yield.
• Shares fell 1.3% to $506.46 after the results. Analysts maintain a consensus “Hold” rating with a $554.60 price target, while insiders have sold approximately $4.8 million of stock over the past 90 days.

Chemed (NYSE:CHE - Get Free Report) announced its quarterly earnings results on Tuesday. The company reported $6.75 earnings per share (EPS) for the quarter, topping the consensus estimate of $6.39 by $0.36, FiscalAI reports. The company had revenue of $690.94 million during the quarter, compared to the consensus estimate of $685.04 million. Chemed had a net margin of 10.60% and a return on equity of 31.77%.

Chemed Stock Down 1.3%

CHE stock traded down $6.44 during trading on Tuesday, hitting $506.46. 191,169 shares of the company's stock were exchanged, compared to its average volume of 201,107. The company has a current ratio of 0.91, a quick ratio of 0.89 and a debt-to-equity ratio of 0.17. The stock has a market capitalization of $6.62 billion, a price-to-earnings ratio of 25.44, a PEG ratio of 2.06 and a beta of 0.51. The business has a 50-day moving average price of $514.82 and a two-hundred day moving average price of $461.28. Chemed has a 52-week low of $365.20 and a 52-week high of $557.00.

Chemed Increases Dividend

The company also recently disclosed a quarterly dividend, which was paid on Thursday, September 3rd. Stockholders of record on Monday, August 17th were issued a $0.70 dividend. This represents a $2.80 dividend on an annualized basis and a dividend yield of 0.6%. The ex-dividend date was Monday, August 17th. This is a positive change from Chemed's previous quarterly dividend of $0.60. Chemed's dividend payout ratio (DPR) is 14.06%.

Wall Street Analysts Forecast Growth

CHE has been the topic of a number of analyst reports. Weiss Ratings raised shares of Chemed from a "hold (c)" rating to a "hold (c+)" rating in a report on Thursday, October 8th. UBS Group assumed coverage on Chemed in a research note on Friday, September 25th. They issued a "buy" rating and a $650.00 price target on the stock. Royal Bank Of Canada lifted their price target on shares of Chemed from $436.00 to $548.00 and gave the stock a "sector perform" rating in a research note on Thursday, July 30th. Oppenheimer lifted their price objective on shares of Chemed from $500.00 to $590.00 and gave the company an "outperform" rating in a research report on Friday, July 31st. Finally, Wall Street Zen upgraded Chemed from a "buy" rating to a "strong-buy" rating in a research report on Saturday, October 10th. Two research analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the company's stock. According to MarketBeat, the company has a consensus rating of "Hold" and a consensus price target of $554.60.

Insiders Place Their Bets

In other news, Director Patrick Grace sold 190 shares of the firm's stock in a transaction that occurred on Friday, July 31st. The shares were sold at an average price of $532.00, for a total transaction of $101,080.00. Following the completion of the transaction, the director directly owned 3,533 shares of the company's stock, valued at $1,879,556. This trade represents a 5.10% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, EVP Spencer Lee sold 1,000 shares of the business's stock in a transaction that occurred on Friday, August 21st. The shares were sold at an average price of $541.04, for a total transaction of $541,040.00. Following the completion of the sale, the executive vice president owned 13,912 shares of the company's stock, valued at approximately $7,526,948.48. The trade was a 6.71% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last ninety days, insiders have sold 9,190 shares of company stock worth $4,833,160. 3.33% of the stock is owned by corporate insiders.

About Chemed

Chemed Corporation NYSE: CHE is a Cincinnati, Ohio-based company that provides healthcare and residential and commercial services through two operating businesses: VITAS Healthcare and Roto-Rooter. Its operations serve customers primarily in the United States, with Roto-Rooter also providing services in Canada.

VITAS Healthcare is a provider of hospice and palliative care for individuals with advanced illnesses. The business delivers care in patients' homes, hospice inpatient units, hospitals, nursing facilities and other care settings.

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