Chemed Meets on the Top Line, Misses Where It Counts

Chemed (NYSE: CHE  ) reported earnings on Feb. 14. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Chemed met expectations on revenues and missed expectations on earnings per share.

Compared to the prior-year quarter, revenue expanded and GAAP earnings per share improved significantly.

Gross margins dropped, operating margins grew, net margins expanded.

Revenue details
Chemed notched revenue of $341.4 million. The four analysts polled by S&P Capital IQ anticipated sales of $342.9 million on the same basis. GAAP reported sales were 4.2% higher than the prior-year quarter's $336.3 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Non-GAAP EPS came in at $1.12. The six earnings estimates compiled by S&P Capital IQ forecast $1.16 per share on the same basis. GAAP EPS of $1.31 for Q3 were 34% higher than the prior-year quarter's $0.98 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 29.1%, 90 basis points worse than the prior-year quarter. Operating margin was 13.1%, 170 basis points better than the prior-year quarter. Net margin was 7.3%, 60 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $358.5 million. On the bottom line, the average EPS estimate is $1.48.

Next year's average estimate for revenue is $1.36 billion. The average EPS estimate is $4.82.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 91 members out of 103 rating the stock outperform, and 12 members rating it underperform. Among 35 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 33 give Chemed a green thumbs-up, and two 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 $64.40.

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