Tuesday after the bell, hospice care services provider Chemed, Corp. (CHE) reported an increase in profit for the third quarter, compared to the year-ago period on higher revenue as well as income from other sources compared to an expense a year ago.
Chemed, the owner of VITAS Healthcare Corp. and plumbing service provider Roto-Rooter, posted a profit of $19.21 million, compared with $16.95 million in the year-ago period. On a per share basis, earnings increased 13.5% to $0.84 from $0.74 in the prior-year period.
Analysts polled by Thomson Reuters expected earnings of $0.88 for the quarter. Analysts' estimates typically exclude one-time items.
Revenue increased 2.9% to $296.8 million from $288.31 million in the year-ago quarter due to increased admissions and higher Medicare price; partially offset by an increase in discharged patients. Analysts expected revenue of $298.54 million for the quarter.
VITAS net patient revenue advanced 5.9% to $217.1 million from $204.95 million, while Roto-Rooter revenue declined 4.4% to $79.7 million from $83.35 million in the year-ago period.
The company said, VITAS' gross margin was 23.4%, essentially flat with the year-earlier figure, while Roto-Rooter's gross margin expanded 133 basis points to 46.4% compared to the year-ago quarter. During the quarter, the company recorded other income of $1.73 million, compared to other expense of $1.91 million in the same period a year ago.
For the nine-month period, net income increased to $55.79 million or $2.46 per share from $49.08 million or $2.08 per share last year. Revenue advanced to $886.98 million from $856.73 million a year ago.
Segment-wise, VITAS expects full year revenue growth, prior to Medicare Cap, of 5.7% to 6.2% with 98% to 100% admissions of prior-year total admissions. This guidance includes $1.25 million of estimated Medicare contractual billing limitations in the fourth quarter of 2009.
Roto-Rooter expects to achieve full-year revenue to range from 98% to 101% of 2008 full-year sales. The revenue estimate is a result of increased pricing of 5.0%, a favorable mix shift to higher revenue jobs, offset by a job count decline estimated at 7.0% to 8.0%.
CHE stock closed Tuesday's regular trading session at $46.59, down $0.74, on the NYSE.
For comments and feedback contact: editorial@rttnews.com
June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.