The second-quarter results for Chemed Corporation (NYSE:CHE) were released last week, making it a good time to revisit its performance. It looks like the results were a bit of a negative overall. While revenues of US$596m were in line with analyst predictions, statutory earnings were less than expected, missing estimates by 8.1% to hit US$4.65 per share. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.
Taking into account the latest results, the most recent consensus for Chemed from twin analysts is for revenues of US$2.44b in 2024. If met, it would imply a credible 4.5% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to rise 4.6% to US$20.86. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$2.43b and earnings per share (EPS) of US$20.46 in 2024. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.
There were no changes to revenue or earnings estimates or the price target of US$685, suggesting that the company has met expectations in its recent result.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Chemed's past performance and to peers in the same industry. It's clear from the latest estimates that Chemed's rate of growth is expected to accelerate meaningfully, with the forecast 9.3% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 3.7% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 6.9% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Chemed is expected to grow much faster than its industry.
The Bottom Line
The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. The consensus price target held steady at US$685, with the latest estimates not enough to have an impact on their price targets.
Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have analyst estimates for Chemed going out as far as 2026, and you can see them free on our platform here.
You still need to take note of risks, for example - Chemed has 1 warning sign we think you should be aware of.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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