Chemed Q2 Revenue Beats, Raises 2026 EPS Guidance on VITAS Strength
CHE sits 45% above its 52-week low of $365.205.
Summary
Chemed delivered a strong Q2 beat with revenue of $673.3M vs. $665M consensus and adjusted EPS of $6.06 vs. $5.60, driven by a 6.1% increase in VITAS days-of-care and a 9% rise in admissions. Lower Medicare Cap billing limitations added 455 basis points to VITAS revenue growth. Management raised full-year 2026 adjusted EPS guidance to $25.00-$25.75 from $24.00-$24.75, lifted VITAS ADC growth outlook to 5.75%-6.25% from 4.5%-5.5%, and raised its view for revenue growth excluding Medicare Cap to 8.25%-9.25%. The company also repurchased 210,000 shares for $89.8M in the quarter. This follows activist pressure from Barington Capital for strategic review and cost cuts, making the raised guidance a direct rebuttal. The stock is trading near its 52-week high, and the guidance raise could push it further.
At the time of this announcement, CHE was trading at $530.37 on NYSE in the Life Sciences sector, with a market capitalization of approximately $6.9B. The 52-week trading range was $365.21 to $520.01. This news item was assessed with positive market sentiment and an importance score of 8 out of 10. Source: Reuters.