Healthcare services company Chemed Corporation (NYSE: CHE) will be announcing earnings results this Tuesday after market hours. Here’s what you need to know.
Chemed met analysts’ revenue expectations last quarter, reporting revenues of $618.8 million, up 3.8% year on year. It was a softer quarter for the company, with a significant miss of analysts’ EPS estimates.
Is Chemed a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting Chemed’s revenue to grow 3.3% year on year to $626 million, slowing from the 7.4% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $5.37 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Chemed has missed Wall Street’s revenue estimates four times over the last two years.
Looking at Chemed’s peers in the healthcare providers & services segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Quest delivered year-on-year revenue growth of 13.2%, beating analysts’ expectations by 3.3%, and Elevance Health reported revenues up 11%, in line with consensus estimates. Quest traded down 4.9% following the results while Elevance Health was also down 2.5%.
Read our full analysis of Quest’s results here and Elevance Health’s results here.
There has been positive sentiment among investors in the healthcare providers & services segment, with share prices up 7.6% on average over the last month. Chemed is down 3.4% during the same time and is heading into earnings with an average analyst price target of $578.50 (compared to the current share price of $436.62).
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