RBC Capital maintains Chemed at Sector Perform, raises price target to $585 from $548

Chemed reported Q3 2026 revenue of $690.9M, up 10.6% YoY, with net income rising 11.5% to $71.6M and EPS increasing 22.2% to $5.45. Growth in VITAS and Roto-Rooter segments drove results, while higher fuel costs pressured margins. The company acquired RotoCo and other franchises, expanding its territories.

Chemed reported Q3 earnings, with Roto-Rooter revenue up 7.5% but EBITDA down 2.5% due to higher costs. Commercial revenue grew 9% to $59.9M, while residential rose 5.2% to $158.8M. The company acquired California franchises for $62.5M, expecting $30M-$35M in 2027 revenue but less than $4M in EBITDA. Chemed repurchased 125,000 shares for $66M. Management expects 2026 EPS to meet or slightly exceed guidance.

Chemed Corp (CHE) reported Q3 2026 earnings with VITAS driving 28% EPS growth. Roto-Rooter saw a 2.5% EBITDA decline due to higher marketing and fuel costs. VITAS faces regulatory audits, reviewing $12-$14M in revenue. Chemed anticipates continued cost headwinds in Q4. Management discussed hiring, acquisitions, and lead generation strategies.

Chemed (CHE) announced a 12- to 18-month integration timeline for its $62.5M California Roto-Rooter franchise buyback. CEO Kevin McNamara reported VITAS revenue grew 12.2% year-over-year, driven by ADC growth and cost containment. The company expects 2026 EPS to be at or slightly above the prior high end.

Chemed (CHE) reported Q3 2026 earnings with total revenue up 10.6% and adjusted EPS up 28.1% YoY. VITAS saw 12.2% revenue growth, while Roto Rooter grew 7.5%. Roto Rooter's margins declined due to higher marketing costs and fuel expenses, but acquisitions are expected to drive long-term growth. The company has $229M in cash flow from operations, enabling strategic acquisitions and share repurchases.

Chemed (CHE) stock rose 9.2% after Q3 earnings beat estimates, with adjusted EPS of $6.75 and revenue of $690.9M. VITAS hospice division showed strong growth. Jefferies upgraded the stock to Buy, raising its price target to $620. Bank of America also increased its target to $555. The stock hit a 52-week high.