The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Chemed beat slightly on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded and GAAP earnings per share expanded.
Gross margins dropped, operating margins dropped, net margins were steady.
Chemed reported revenue of $368.6 million. The three analysts polled by S&P Capital IQ anticipated net sales of $364.5 million on the same basis. GAAP reported sales were 5.2% higher than the prior-year quarter's $350.3 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 $1.57. The five earnings estimates compiled by S&P Capital IQ predicted $1.48 per share. GAAP EPS of $1.40 for Q4 were 6.9% higher than the prior-year quarter's $1.31 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 28.9%, 20 basis points worse than the prior-year quarter. Operating margin was 12.5%, 60 basis points worse than the prior-year quarter. Net margin was 7.3%, about the same as the prior-year quarter.
Next quarter's average estimate for revenue is $357.0 million. On the bottom line, the average EPS estimate is $1.19.
Next year's average estimate for revenue is $1.46 billion. The average EPS estimate is $5.47.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 100 members out of 114 rating the stock outperform, and 14 members rating it underperform. Among 40 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 35 give Chemed a green thumbs-up, and five 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 $72.00.
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