From StockStory: 2025-05-12 04:59:00

Chemed Corporation (NYSE:CHE) exceeded revenue expectations in Q1 CY2025, reporting sales of $646.9 million, a 9.8% increase year on year. Non-GAAP profit per share was $5.63, 1.5% higher than analysts’ estimates. The company’s market capitalization is $8.31 billion. Chemed credited its performance to organic growth and contributions from the Covington Health acquisition, with VITAS hospice care seeing increased admissions and Roto Rooter plumbing services experiencing modest revenue growth. Management emphasized balancing growth and margin management, focusing on Medicare cap strategies and sustainable growth trajectory.

Looking forward, Chemed expects growth moderation due to regulatory constraints, acquisition integration, and operational improvements. Management highlighted VITAS’ hospital-based admission strategy, Covington Health integration, and Roto Rooter’s commercial pricing adjustments as key drivers of future performance. Analysts questioned Medicare cap management and cash flow dynamics, with temporary cash flow timing issues being addressed. The StockStory team will monitor VITAS’ strategy, Covington Health integration, and Roto Rooter’s pricing in upcoming quarters to assess the company’s inflection point for investment.



Read more at StockStory: Acquisition-Driven Growth and Medicare Cap Strategy Shape Outlook