The 10-second takeaway
For the quarter ended March 31 (Q1), Chemed beat slightly on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew. Non-GAAP earnings per share expanded significantly. GAAP earnings per share grew.
Margins grew across the board.
Chemed booked revenue of $366.6 million. The three analysts polled by S&P Capital IQ predicted sales of $362.6 million on the same basis. GAAP reported sales were the same as the prior-year quarter's.
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 $1.38. The five earnings estimates compiled by S&P Capital IQ forecast $1.29 per share. Non-GAAP EPS of $1.38 for Q1 were 18% higher than the prior-year quarter's $1.17 per share. GAAP EPS of $1.17 for Q1 were 10% higher than the prior-year quarter's $1.06 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 27.9%, 80 basis points better than the prior-year quarter. Operating margin was 10.6%, 70 basis points better than the prior-year quarter. Net margin was 6.1%, 30 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $368.6 million. On the bottom line, the average EPS estimate is $1.34.
Next year's average estimate for revenue is $1.49 billion. The average EPS estimate is $5.69.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 96 members out of 110 rating the stock outperform, and 14 members rating it underperform. Among 37 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 34 give Chemed a green thumbs-up, and three 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 $82.00.
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