Chemed Company CHE reported first-quarter 2021 adjusted earnings per share (EPS) of $4.44, up 20.7% yr over yr. The determine surpassed the Zacks Consensus Estimate by 5.7%.
The corporate’s GAAP EPS was $4.01, highlighting an 18.6% enchancment yr over yr.
Revenues in Element
Revenues within the reported quarter improved 2.2% yr over yr to $527.Four million. The metric surpassed the Zacks Consensus Estimate by 2%.
Segmental Particulars
Chemed operates by way of two wholly-owned subsidiaries — VITAS (a significant supplier of end-of-life care) and Roto-Rooter (a number one business and residential plumbing plus drain cleansing service supplier).
Within the first quarter, internet revenues at VITAS totaled $316 million, down 6.5% yr over yr. This income decline was primarily led by a 7.1% decline in days-of-care, a geographically weighted common Medicare reimbursement price enhance (together with the suspension of sequestration on Could 1, 2020) of roughly 2.8% and an acuity combine shift that decreased the blended common Medicare price by roughly 50 foundation factors (bps).
Roto-Rooter reported gross sales of $212 million within the first quarter, up 18.9% yr over yr.
Complete Roto-Rooter department business revenues declined 8.4% on a 5.8% fall in drain cleansing revenues, 5% decline in business plumbing, 19.5% lower in excavation revenues and an 8.8% enhance in business water restoration revenues.
Chemed Company Value, Consensus and EPS Shock
Chemed Company price-consensus-eps-surprise-chart | Chemed Company Quote
Complete Roto-Rooter department residential revenues registered development of 32% on a 29.5% rise in residential drain cleansing revenues, 34.9% enchancment in plumbing, 35.8% enhance in excavation and 28.7% development in residential water restoration.
Margin in Element
Gross revenue rose 13.9% yr over yr to $186.9 million within the first quarter of 2021. Gross margin expanded 363 bps yr over yr to 35.4%, whereas the price of services declined 3.2% within the first quarter of 2021.
Adjusted working revenue elevated 1.9% from the year-ago interval to $95.Three million. Adjusted working margin contracted 5 bps to 18.1% with a 29.8% rise in adjusted working bills.
Liquidity & Capital Construction
Chemed exited the primary quarter of 2021 with money and money equivalents of $210 million, marking an enchancment from $162.7 million on the finish of the final reported quarter. Much like fourth-quarter 2020, there was no long-term debt on the finish of first-quarter 2021.
First-quarter internet money offered by working actions was $106.7 million in contrast with $89.Three million a yr in the past.
Within the first quarter, Chemed’s administration repurchased shares for $44.Eight million. As of Mar 31, 2021, there was roughly $134 million of share repurchase remaining beneath the present plan.
Steerage 2021
Administration is probably going to supply the up to date 2021 earnings steerage in July together with the second-quarter earnings launch.
Our Take
Chemed ended the primary quarter of 2021 with better-than-expected earnings and revenues. The figures improved yr over yr. Stable income development throughout Roto-Rooter is encouraging, given the difficult enterprise setting. Growth of gross margins buoys optimism. Chemed exited the primary quarter of 2021 will no long-term debt, which is once more a constructive.
On the flip aspect, a decline in VITAS revenues in the course of the reported quarter was discouraging. Rising working bills and contraction of working margin are considerations. Reimbursement hampering top-line development, enterprise seasonality and a troublesome aggressive panorama are different headwinds.
Zacks Rank & Key Picks
At present, Chemed carries a Zacks Rank #3 (Maintain).
Some better-ranked shares within the broader medical area embody Semler Scientific Inc. SMLR, Owens & Minor, Inc. OMI and DENTSPLY SIRONA Inc. XRAY, every carrying a Zacks Rank #2 (Purchase). You’ll be able to see the whole checklist of immediately’s Zacks #1 Rank (Robust Purchase) shares right here.
Semler is anticipated to launch outcomes on Could 3. The Zacks Consensus Estimate for the corporate’s first-quarter 2021 adjusted EPS is at the moment pegged at 48 cents. The consensus mark for first-quarter revenues stands at $11.9 million.
Owens & Minor and is scheduled to launch outcomes on Could 5. The Zacks Consensus Estimate for its first-quarter 2021 adjusted EPS is at the moment pegged at 97 cents. The consensus estimate for first-quarter revenues stands at $2.29 billion.
DENTSPLY SIRONA is slated to launch outcomes on Could 6. The Zacks Consensus Estimate for first-quarter 2021 adjusted EPS is at the moment pegged at 55 cents. The consensus estimate for revenues stands at $929.Three million.
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