In a challenging market environment, Chemed Corp (NYSE:CHE) stock has touched a 52-week low, dipping to $524.5. This latest price level reflects a notable decline in investor sentiment as the company navigates through a period marked by economic headwinds. Over the past year, Chemed Corp has seen its stock price undergo a significant contraction, with a 1-year change showing a decrease of 10.46%. This downturn highlights the pressures faced by the healthcare and chemical company, as investors recalibrate their expectations in response to the company's performance and broader market trends.
In other recent news, Chemed Corporation reported mixed Q3 results, with significant growth in its VITAS Healthcare subsidiary contrasted by a dip in its Roto-Rooter services. VITAS Healthcare saw a 6.3% increase in patient admissions, a 15.5% growth in daily census, and a 17.3% rise in revenue to $391.4 million. However, Roto-Rooter faced a 6.9% decline in revenue to $214.8 million and an 11.7% drop in call volume. Despite these challenges, Chemed adjusted its full-year earnings per share guidance to $23-$23.15, reflecting a positive outlook for VITAS and a plan to stabilize Roto-Rooter's performance.
In light of these recent developments, Chemed reaffirmed its 2024 guidance range of $23.55 to $23.80. The company anticipates future performance for VITAS to exceed pre-pandemic growth levels, while Roto-Rooter's Q4 revenue is expected to remain consistent with Q3. The company has also increased its dedicated marketing personnel for Roto-Rooter to improve online search performance.
Despite the mixed results, VITAS Healthcare has experienced nine consecutive quarters of average daily census growth, thanks to strategic acquisitions and new program launches. However, Roto-Rooter's residential revenue and call volume have declined due to increased competition and the transition to a new search engine marketing firm. Despite these headwinds, Chemed remains cautiously optimistic for commercial growth in 2025.
InvestingPro Insights
Despite Chemed Corp (CHE) touching a 52-week low, InvestingPro data reveals some resilient aspects of the company's financial health. The company's revenue growth of 6.83% over the last twelve months as of Q3 2024 indicates continued business expansion, even in a challenging market. Moreover, Chemed's EBITDA growth of 16.61% over the same period suggests improved operational efficiency.
InvestingPro Tips highlight Chemed's strong dividend history, having maintained dividend payments for 54 consecutive years and raised them for 15 consecutive years. This commitment to shareholder returns could provide some stability for investors during market volatility. Additionally, the company's management has been aggressively buying back shares, potentially signaling confidence in the company's long-term prospects.
It's worth noting that while the stock has taken a hit recently, with a 12.67% decline in the past week, Chemed operates with a moderate level of debt and has cash flows that can sufficiently cover interest payments. This financial stability may help the company weather current market challenges.
For investors seeking a more comprehensive analysis, InvestingPro offers 13 additional tips for Chemed Corp, providing deeper insights into the company's financial position and market performance.
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