Back to top

Image: Bigstock

Why Is Chemed (CHE) Up 9.3% Since Last Earnings Report?

Read MoreHide Full Article

It has been about a month since the last earnings report for Chemed (CHE - Free Report) . Shares have added about 9.3% in that time frame, outperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is Chemed due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.

Chemed Misses Q2 Earnings Estimates

Chemed Corporation reported second-quarter 2025 adjusted earnings per share of $4.27, down 21.9% year over year. The figure fell short of the Zacks Consensus Estimate by 10.67%.

The company’s GAAP earnings per share were $3.57, down 23.2% from last year’s reported figure.

Chemed’s Q2 Revenues

Revenues in the reported quarter improved 3.8% year over year to $618.8 million. The metric topped the Zacks Consensus Estimate by 0.45%.

Chemed Updates 2025 Guidance

The company revised its full-year 2025 guidance. Revenues from VITAS, before Medicare Cap, are now estimated to increase 7.5% to 8.5% (earlier 10.5% to 11.3%) from the 2024 levels.

The Zacks Consensus Estimate for total revenues is pegged at $2.55 billion, which indicates a 4.9% improvement year over year.

Adjusted earnings are anticipated in the range of $22.00-$22.30 per share (previously $24.95-$25.45 range). The Zacks Consensus Estimate for the metric is pegged at $22.12, which implies a 4.4% fall over the 2024 adjusted figure.

How Have Estimates Been Moving Since Then?

It turns out, estimates revision have trended downward during the past month.

The consensus estimate has shifted -5.56% due to these changes.

VGM Scores

At this time, Chemed has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with a C. Charting a somewhat similar path, the stock has a score of D on the value side, putting it in the bottom 40% for value investors.

Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise Chemed has a Zacks Rank #5 (Strong Sell). We expect a below average return from the stock in the next few months.

Performance of an Industry Player

Chemed belongs to the Zacks Medical - Outpatient and Home Healthcare industry. Another stock from the same industry, Quest Diagnostics (DGX - Free Report) , has gained 6.5% over the past month. More than a month has passed since the company reported results for the quarter ended June 2025.

Quest Diagnostics reported revenues of $2.76 billion in the last reported quarter, representing a year-over-year change of +15.2%. EPS of $2.62 for the same period compares with $2.35 a year ago.

Quest Diagnostics is expected to post earnings of $2.51 per share for the current quarter, representing a year-over-year change of +9.1%. Over the last 30 days, the Zacks Consensus Estimate has changed -0.1%.

Quest Diagnostics has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of A.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Quest Diagnostics Incorporated (DGX) - free report >>

Chemed Corporation (CHE) - free report >>

Published in