FONT-SIZE Plus   Neg

Chemed Results Top Estimates; Outlook Strong

Chemed Corp. (CHE) said Monday that its fourth quarter profit rose 4% from last year, as strong performance by its VITAS segment more than offset the weakness in its Roto-Rooter segment.

The company's quarterly earnings per share, excluding items, also came in above analysts' expectations as did its quarterly revenue. At the same time, the company gave a strong earnings outlook for the current year.

Chemed operates VITAS Healthcare Corp., the largest U.S. provider of end-of-life care, and Roto-Rooter, the largest commercial and residential plumbing and drain cleaning services provider in the U.S.

Fourth quarter revenue for the VITAS segment rose 7.2% to $273 million, due to a 5.4% increase in Average Daily Census.

Roto-Rooter's plumbing and drain cleaning business generated fourth quarter revenue of $95.6 million, a decrease of 0.1% from a year earlier.

For the fourth quarter ended December 31, 2012, Chemed reported net income of $26.7 million or $1.40 per share, compared to $25.7 million or $1.31 per share for the year-ago quarter.

Excluding items, adjusted net income for the fourth quarter was $29.9 million or $1.57 per share, compared to $28.3 million or $1.45 per share in the prior year quarter.

On average, 5 analysts polled by Thomson Reuters expected the company toe earn $1.48 per share for the fourth quarter. Analysts' estimates typically exclude special items.

Chemed's total revenue for the fourth quarter rose 5.2% to $368.58 million from $350.25 million in the same quarter last year. Four analysts had a consensus revenue estimate of $364.95 million for the fourth quarter.

Looking forward, Chemed forecast 2013 adjusted earnings of $5.65 to $5.80 per share. Analysts currently expect the company to earn $5.47 per share for the full year 2013.

Chemed shares closed Friday's regular trading session at $76.09, down 71 cents.

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Editors Pick
Retailers could see record web traffic this year as more consumers then ever before plan to shop online, according to Deloitte's 31st annual holiday survey of consumer spending intentions and trends. The survey found that holiday shoppers this year plan to spend just as much as online as they spend in brick and mortar stores. Oil giant Chevron Corp. on Friday reported a 37 percent decline in profit for the third quarter from last year, reflecting lower oil prices and weak refining margins. However, both revenue and earnings per share for the quarter beat analysts' estimates. In addition, the company raised its quarterly dividend. Mastercard Inc. (MA) reported a profit for the third quarter of 2016 that increased about 21 percent from the year-ago period, while it was up 15% excluding a special item related to the termination of the U.S. employee pension plan taken in last year's third quarter. Both earnings per share and revenue for the quarter beat analysts' expectations.
comments powered by Disqus
Follow RTT