Chemed Corporation Q2 Earnings Miss: Revenue in Line, EPS Down 23%

Chemed Corporation reported Q2 earnings that missed EPS estimates by 23%, with revenues in line with predictions. Analysts have revised their forecasts, with revenues expected to reach $2.55b in 2025, a slight decline from the previous estimate. EPS is forecast to reduce 3.2% to $19.36 in 2025. The average price target fell 12% to $567, with a narrowed range of estimates.

Chemed Corporation (NYSE: CHE) reported its Q2 earnings on July 29, 2025, with earnings per share (EPS) coming in at $4.27, missing the consensus estimate of $6.02 by 23%. Revenue for the quarter was $618.8 million, in line with analyst expectations of $650.6 million. The company's net margin remained at 11.56% and return on equity at 25.94%.

Analysts have revised their forecasts in response to the earnings report. Revenues are now expected to reach $2.55 billion in 2025, a slight decline from the previous estimate of $2.6 billion. EPS is forecast to reduce by 3.2% to $19.36 in 2025. The average price target has fallen 12% to $567, with a narrowed range of estimates [1].

Oppenheimer analysts reduced their price target for Chemed from $650 to $580, maintaining an "outperform" rating. Jefferies Financial Group set a "hold" rating and a $500 target price, while Royal Bank of Canada reissued an "outperform" rating with a $640 price target. Bank of America reduced their price objective from $708 to $650, setting a "buy" rating [1].

Chemed's dual capital return strategy, combining aggressive stock buybacks and disciplined dividend growth, continues to attract investor attention. In Q2 2025, the company repurchased 75,000 shares for $42.9 million, averaging $572.61 per share. The quarterly dividend has surged from $0.34 to $0.50 per share, reflecting a 25% annualized growth rate [2].

The company's balance sheet remains strong, with a debt-to-equity ratio of 0.12 and 55 years of uninterrupted dividend payments. Management views share repurchases as a strategic response to short-term volatility and a signal of confidence in the company's long-term moats.

References:
[1] https://www.marketbeat.com/instant-alerts/chemed-nyseche-given-new-58000-price-target-at-oppenheimer-2025-07-31/
[2] https://www.ainvest.com/news/chemed-corporation-dual-capital-return-strategy-blueprint-shareholder-healthcare-sector-2508/