Hospice care services provider Chemed Corp. (CHE), Wednesday, reported a rise in first-quarter earnings, as revenues grew 5% in the VITAS segment helped by Medicare price increase.
Net income for the quarter grew to $19.3 million or $0.85 per share, from $15.9 million or $0.65 per share in the year-ago quarter. Adjusted net income was up to $21.2 million or $0.94 per share, from $17.7 million or $0.73 per share previous year.
On average, four analysts' polled by Thomson Reuters estimated the earnings to be $0.83 per share. Analysts' estimate typically excludes special items.
Service revenues and sales for the three-month period rose 3.4% to $294.9 million from $285.3 million in the previous year period. The Street was looking for revenues of $294.23 million.
Segment-wise, net patient revenue for VITAS division was up 5% to $208.4 million, primarily a result of increased average daily census and a Medicare price increase. Roto-Rooter segment revenue remained essentially flat with prior year at $86.5 million.
Looking ahead, the medical services provider expects adjusted earnings of $3.70 - $3.95 per share for fiscal 2009. The Street's earnings estimate for Chemed is $3.50 per share for the year.
Chemed also said it anticipates adjusted annual revenue growth of 5.5% - 7% for its VITAS segment and 3% - 4% revenue growth for Roto-Rooter division.
CHE is down $1.94, trading at $40.11 on the New York Stock Exchange.
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