The 10-second takeaway
For the quarter ended March 31 (Q1), Chemed met expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue expanded and GAAP earnings per share grew significantly.
Gross margins dropped, operating margins increased, net margins increased.
Chemed logged revenue of $352.9 million. The four analysts polled by S&P Capital IQ predicted revenue of $349.9 million on the same basis. GAAP reported sales were 6.7% higher than the prior-year quarter's $330.9 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $1.17. The five earnings estimates compiled by S&P Capital IQ anticipated $1.25 per share on the same basis. GAAP EPS of $1.06 for Q1 were 26% higher than the prior-year quarter's $0.84 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 27.1%, 110 basis points worse than the prior-year quarter. Operating margin was 9.9%, 70 basis points better than the prior-year quarter. Net margin was 5.8%, 30 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $351.7 million. On the bottom line, the average EPS estimate is $1.27.
Next year's average estimate for revenue is $1.43 billion. The average EPS estimate is $5.41.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 91 members out of 103 rating the stock outperform, and 12 members rating it underperform. Among 35 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 33 give Chemed a green thumbs-up, and two give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Chemed is outperform, with an average price target of $65.40.
The healthcare investing landscape is littered with also-rans and a few major winners. Is Chemed prepared for the future? Read "Discover the Next Rule-Breaking Multibagger" to learn about a company David Gardner believes will deliver amazing returns during the next few years. Click here for instant access to this free report.
- Add Chemed to My Watchlist.
Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.