logo
Share SHARE
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
Social media app Snapchat has introduced a new location service, Snap Map, that will allow users of the app to see the location of all their friends on a map. The new feature will essentially allow a user to see where his friends are hanging out and what they are up to and also share his own location with friends in real time. The U.S. has suspended all imports of fresh beef from Brazil due to recurring concerns about the safety of the products. The suspension of shipments from Brazil, the fifth largest exporter of beef to the U.S., will remain in place until the Brazilian Ministry of Agriculture takes corrective action, the U.S. Department of Agriculture or USDA said in a statement. The annual Federal stress test was cleared by 34 top banks. The result shows strong capital levels and the ability of large banks to remain capitalized even in stressed situations. The Federal Reserve noted that these banks will be able to lend to households and businesses even at severe recession and throughout the economic cycle.
comments powered by Disqus
Follow RTT