Chemed Corporation (NYSE:CHE) Full-Year Results: Here's What Analysts Are Forecasting For This Year

Investors in Chemed Corporation (NYSE:CHE) had a good week, as its shares rose 4.9% to close at US$626 following the release of its annual results. It was a credible result overall, with revenues of US$2.3b and statutory earnings per share of US$17.93 both in line with analyst estimates, showing that Chemed is executing in line with expectations. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Chemed after the latest results.

Check out our latest analysis for Chemed

Taking into account the latest results, the consensus forecast from Chemed's three analysts is for revenues of US$2.42b in 2024. This reflects an okay 6.8% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to swell 17% to US$21.25. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$2.40b and earnings per share (EPS) of US$20.81 in 2024. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.

There's been no major changes to the consensus price target of US$654, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. There are some variant perceptions on Chemed, with the most bullish analyst valuing it at US$708 and the most bearish at US$604 per share. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Chemed is an easy business to forecast or the the analysts are all using similar assumptions.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. The analysts are definitely expecting Chemed's growth to accelerate, with the forecast 6.8% annualised growth to the end of 2024 ranking favourably alongside historical growth of 4.1% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 6.8% annually. Chemed is expected to grow at about the same rate as its industry, so it's not clear that we can draw any conclusions from its growth relative to competitors.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Chemed following these results. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for Chemed going out to 2026, and you can see them free on our platform here..

Plus, you should also learn about the 1 warning sign we've spotted with Chemed .

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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.