Q2 Earnings Analysis: Chemed (NYSE:CHE) Leads Senior Health, Home Health & Hospice Stocks

Q2 earnings results from senior health, home health, and hospice stocks were mixed. Chemed's (CHE) revenues increased 3.8% YoY but missed EPS estimates. BrightSpring Health Services (BTSG) reported strong Q2 results, with revenues beating analysts' estimates. The industry is expected to benefit from an aging population and increasing chronic disease prevalence. However, labor shortages and wage inflation pose challenges.

Title: Mixed Q2 Earnings for Senior Health, Home Health, and Hospice Stocks

July 02, 2025

The second quarter earnings season for senior health, home health, and hospice stocks has come to a close, revealing a mixed performance. While some companies reported strong results, others faced challenges, particularly in meeting earnings per share (EPS) estimates. The industry, driven by an aging population and increasing chronic disease prevalence, faces significant headwinds such as labor shortages and wage inflation.

Chemed (NYSE: CHE) reported revenues of $618.8 million, up 3.8% year over year, meeting analysts' expectations. However, the company missed EPS estimates, leading to a 6.7% decline in its stock price since reporting [1]. Chemed operates two distinct businesses: VITAS, which provides hospice care, and Roto-Rooter, which offers plumbing and water restoration services. The company's Chief Executive Officer, Kevin J. McNamara, highlighted the transformation and growth of VITAS under the leadership of Nick.

BrightSpring Health Services (NASDAQ: BTSG) delivered a strong Q2, with revenues of $3.15 billion, up 29.1% year over year, beating analysts' expectations by 5.2%. The company also beat EPS estimates and provided full-year EBITDA guidance that topped analysts' expectations. Despite the impressive results, the stock has traded sideways since reporting, currently at $20.78 [1].

Brookdale (NYSE: BKD), a senior living provider, reported revenues of $812.9 million, up 4.6% year over year, but fell short of analysts' expectations by 0.6%. The company's stock has declined 7.4% since the results, trading at $7.21 [1].

Addus HomeCare (NASDAQ: ADUS) reported revenues of $349.4 million, up 21.8% year over year, topping analysts' expectations by 0.8%. The company also beat EPS estimates but missed sales volume estimates. The stock has increased 2.9% since reporting, trading at $110.19 [1].

AdaptHealth (NASDAQ: AHCO) reported flat revenues of $800.4 million year over year, meeting analysts' expectations. However, the company missed EPS estimates and full-year EBITDA guidance, resulting in a 3.4% increase in its stock price since reporting, trading at $9.44 [1].

Enhabit, another home health and hospice care provider, reported a 2.1% year-over-year increase in net service revenue to $266.1 million. Adjusted EBITDA and EPS also beat analyst expectations, with EPS exceeding estimates. The company raised its 2025 revenue, adjusted EBITDA, and adjusted EPS guidance, reflecting strong growth drivers such as home health growth and hospice expansion [2].

The Pennant Group (NASDAQ: PNTG), a senior living provider, is set to report its Q2 results on July 3, 2025. Analysts expect revenue growth of 24.9% year over year, with adjusted earnings per share of $0.27. The company has a history of exceeding Wall Street's expectations, with an average beat of 5% over the past two years [3].

The senior health, home health, and hospice industries are positioned for growth due to demographic trends and increasing chronic disease prevalence. However, challenges such as labor shortages, wage inflation, and regulatory uncertainty around reimbursement rates pose significant risks. Companies in the sector are investing in digitization and technology-driven care to enhance efficiency and long-term success.

References

[1] StockStory. "Q2 Earnings Outperformers: Chemed (NYSE: CHE) and the Rest of the Senior Health, Home Health & Hospice Stocks." StockStory. Accessed July 2, 2025. [URL](https://stockstory.org/us/stocks/nyse/che/news/earnings/q2-earnings-outperformers-chemed-nyseche-and-the-rest-of-the-senior-health-home-health-and-hospice-stocks)

[2] Reuters. "Enhabit Q2 Adjusted EPS Beats Expectations, Raises Annual Guidance." Reuters. Accessed July 2, 2025. [URL](https://www.tradingview.com/news/reuters.com,2025:newsml_PLXE212A4:0-enhabit-q2-adjusted-eps-beats-expectations-raises-annual-guidance/)

[3] Yahoo Finance. "Pennant Group (PNTG) to Report Earnings on July 3, 2025." Yahoo Finance. Accessed July 2, 2025. [URL](https://finance.yahoo.com/news/pennant-group-pntg-report-earnings-032424419.html)