The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Chemed missed slightly on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue increased and GAAP earnings per share expanded slightly.
Margins contracted across the board.
Chemed reported revenue of $354.4 million. The four analysts polled by S&P Capital IQ predicted a top line of $360.2 million on the same basis. GAAP reported sales were 3.8% higher than the prior-year quarter's $341.4 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $1.28. The five earnings estimates compiled by S&P Capital IQ forecast $1.35 per share. GAAP EPS of $1.07 for Q3 were 2.9% higher than the prior-year quarter's $1.04 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 27.6%, 60 basis points worse than the prior-year quarter. Operating margin was 10.2%, 190 basis points worse than the prior-year quarter. Net margin was 5.9%, 50 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $369.2 million. On the bottom line, the average EPS estimate is $1.57.
Next year's average estimate for revenue is $1.44 billion. The average EPS estimate is $5.37.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 93 members out of 107 rating the stock outperform, and 14 members rating it underperform. Among 35 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 31 give Chemed a green thumbs-up, and four 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 $68.75.
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