What drove CHE's surprising Q4 earnings rebound?

Chemed Corporation's (CHE) Q4 earnings rebound can be attributed to several key factors:

1. **VITAS Segment Growth**: The VITAS Healthcare segment experienced a significant increase in net patient revenue, which rose by 17.4% to $411.0 million. This growth was driven by a 14.6% increase in the average daily census (ADC) to 22,179 and the completion of the acquisition of Covenant Health’s hospice assets and an assisted living facility, which contributed approximately $11 million to $12 million in revenue for the quarter.
2. **Roto-Rooter Performance**: Despite a 2.9% revenue decline in the Roto-Rooter segment to $229.0 million, the water restoration services saw a significant increase of 19.8% in commercial revenue and 2.8% in residential revenue. This indicates that while the core plumbing and drain cleaning services faced challenges, the company's strategic focus on service expansion and market demand in emergency water restoration services helped mitigate the decline.
3. **Strategic Initiatives**: Chemed's successful integration of Covenant Health’s assets into VITAS and the continued focus on operational efficiency contributed to the improved financial performance. The company's proactive approach to cybersecurity and brand management also underscore its commitment to maintaining operational integrity and customer trust, which likely positively influenced financial outcomes.

In summary, Chemed's Q4 earnings rebound was primarily driven by the strong performance of its VITAS segment, strategic acquisitions, and operational efficiencies, despite some challenges in the Roto-Rooter segment.