Chemed Corporation Reports Strong Q4 2024 Results

Chemed ( (CHE) ) has released its Q4 earnings. Here is a breakdown of the information Chemed presented to its investors.

Chemed Corporation is a diversified company operating in the healthcare and plumbing industries through its subsidiaries VITAS Healthcare Corporation and Roto-Rooter. VITAS is one of the largest providers of end-of-life care in the United States, while Roto-Rooter is the largest provider of plumbing and drain cleaning services in the country.

In its fourth-quarter 2024 earnings report, Chemed Corporation announced a 9.2% increase in revenue, reaching $640 million. The company’s GAAP diluted earnings per share rose by 2.0% to $6.02, while adjusted diluted EPS increased by 3.5% to $6.83. These results reflect a strong performance in the VITAS segment, which saw significant revenue growth.

VITAS Healthcare reported a 17.4% increase in net patient revenue, driven by a 14.6% rise in the average daily census and a 3.5% increase in admissions. The acquisition of Covenant Health’s hospice assets contributed approximately $11 to $12 million in revenue for the quarter. In contrast, Roto-Rooter experienced a 2.9% decline in revenue, with decreases in plumbing and drain cleaning services offsetting growth in water restoration.

Despite challenges in the Roto-Rooter segment, Chemed remains financially robust, with $178.4 million in cash and no long-term debt. The company repurchased shares worth $212.8 million during the quarter, reflecting confidence in its financial position.

Looking ahead, Chemed’s management anticipates continued growth in 2025, with VITAS revenue expected to increase by 10.5% to 11.3% and Roto-Rooter revenue projected to grow by 2.4% to 3.0%. The company remains focused on strategic initiatives to enhance performance across its segments.