The Chemed Corporation (NYSE:CHE) Third-Quarter Results Are Out And Analysts Have Published New Forecasts

It's been a sad week for Chemed Corporation (NYSE:CHE), who've watched their investment drop 10% to US$540 in the week since the company reported its third-quarter result. Revenues of US$606m were in line with forecasts, although statutory earnings per share (EPS) came in below expectations at US$5.00, missing estimates by 3.5%. 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.

See our latest analysis for Chemed

Taking into account the latest results, the current consensus from Chemed's dual analysts is for revenues of US$2.61b in 2025. This would reflect a decent 9.8% increase on its revenue over the past 12 months. Per-share earnings are expected to step up 17% to US$23.63. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$2.63b and earnings per share (EPS) of US$24.12 in 2025. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a minor downgrade to their earnings per share forecasts.

It might be a surprise to learn that the consensus price target was broadly unchanged at US$685, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. The analysts are definitely expecting Chemed's growth to accelerate, with the forecast 7.7% annualised growth to the end of 2025 ranking favourably alongside historical growth of 3.5% per annum over the past five years. Other similar companies in the industry (with analyst coverage) are also forecast to grow their revenue at 6.7% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Chemed is expected to grow at about the same rate as the wider industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Chemed. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall 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.

With that in mind, we wouldn't be too quick to come to a conclusion on Chemed. Long-term earnings power is much more important than next year's profits. At least one analyst has provided forecasts out to 2026, which can be seen for 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.