CHEMED CORPORATION Reports Q2 FY2023 Earnings Results on July 26 2023
August 4, 2023
🌥️Earnings Overview
On July 26 2023, CHEMED CORPORATION ($NYSE:CHE) released its earnings results for the second quarter of FY2023, which ended on June 30 2023. Revenue for the quarter totaled USD 553.8 million, a 4.2% increase from the same period in the prior year. Unfortunately, net income declined 19.7%, amounting to USD 53.4 million.
Share Price
The company’s management attributed the successful second quarter to an increase in sales of its core products and services. The company’s customers responded positively to its new product offerings as well as its customer service experience. Overall, CHEMED CORPORATION reported a successful second quarter, and the company is optimistic for the rest of the fiscal year. The stock has increased since its quarterly earnings announcement, and the company is confident in its future prospects. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Chemed Corporation. More…
| Total Revenues | Net Income | Net Margin |
| 2.19k | 226.5 | 10.2% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Chemed Corporation. More…
| Operations | Investing | Financing |
| 345.02 | -67.3 | -127.44 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Chemed Corporation. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 1.51k | 553.1 | 63.39 |
Key Ratios Snapshot
Some of the financial key ratios for Chemed Corporation are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 2.7% | -0.9% | 14.0% |
| FCF Margin | ROE | ROA |
| 12.8% | 20.8% | 12.7% |
Analysis
GoodWhale has thoroughly analyzed the fundamentals of CHEMED CORPORATION, and concluded that it is classified as a ‘cow’ on the Star Chart – a company that has the track record of paying out consistent and sustainable dividends. As such, it is likely to appeal to investors focused on dividend income. The financial health of CHEMED CORPORATION is strong with a health score of 10/10, indicating its cashflows and debt are healthy and that it is capable of paying off debt and funding future operations. The company is also strong in dividend and profitability, and medium in asset. However, it is weak in growth. Overall, CHEMED CORPORATION is a reliable option for dividend-focused investors looking for a company with a strong financial health and good dividend record. More…
Peers
The competition between Chemed Corp and its competitors is fierce. Chemed Corp is the largest provider of hospice care in the United States, and its competitors are Brookdale Senior Living Inc, Encompass Health Corp, and Pennant Group Inc. All of these companies are vying for a share of the $15 billion hospice market. Chemed Corp has a lot of experience in the hospice industry, and its competitors are trying to catch up.
– Brookdale Senior Living Inc ($NYSE:BKD)
Brookdale Senior Living Inc is a company that owns and operates senior living communities. As of 2022, the company had a market cap of 837.09M and a ROE of 10.52%. The company offers a variety of services for seniors, including independent living, assisted living, memory care, and skilled nursing.
– Encompass Health Corp ($NYSE:EHC)
Encompass Health Corporation is a provider of rehabilitation and wellness services. The company operates through two segments: Inpatient Rehabilitation, and Home Health and Hospice. The Inpatient Rehabilitation segment provides rehabilitation services on an inpatient basis to patients recovering from illnesses and injuries. The Home Health and Hospice segment provides home health services to patients recovering from illnesses and injuries. Encompass Health Corporation was founded in 1985 and is headquartered in Birmingham, Alabama.
– Pennant Group Inc ($NASDAQ:PNTG)
The Pennant Group, Inc. is a provider of healthcare services for senior living communities and post-acute care centers in the United States. The company operates through three segments: Senior Living, Home Health, and Hospice. The Senior Living segment offers a range of services, including skilled nursing, assisted living, independent living, and memory care services. The Home Health segment provides home health services, such as skilled nursing, physical therapy, occupational therapy, and speech therapy. The Hospice segment offers hospice services, including nursing care, social work services, chaplain services, and bereavement counseling.
Summary
CHEMED CORPORATION reported its earnings results for the second quarter of FY2023 on July 26, 2023. Revenue increased 4.2% from the same period last year, reaching USD 553.8 million. Net income, however, decreased 19.7%, coming in at USD 53.4 million. Investors should take into consideration the increasing revenue and decreasing net income when performing their analysis of CHEMED CORPORATION.
It is important to also assess other factors such as the company’s cash flow, balance sheet, competitive positioning, and future prospects, among others. Ultimately, investors should make an informed decision based on their own research and assessment of the company.
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