Last week, you might have seen that Chemed Corporation (NYSE:CHE) released its quarterly result to the market. The early response was not positive, with shares down 4.0% to US$573 in the past week. Revenues were in line with forecasts, at US$589m, although statutory earnings per share came in 14% below what the analysts expected, at US$4.24 per share. 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
Taking into account the latest results, the consensus forecast from Chemed's four analysts is for revenues of US$2.43b in 2024. This reflects a credible 6.1% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to expand 12% to US$20.94. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$2.42b and earnings per share (EPS) of US$21.19 in 2024. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.
With the analysts reconfirming their revenue and earnings forecasts, it's surprising to see that the price target rose 10% to US$689. It looks as though they previously had some doubts over whether the business would live up to their expectations. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values Chemed at US$712 per share, while the most bearish prices it at US$650. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.
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 8.2% annualised growth to the end of 2024 ranking favourably alongside historical growth of 3.8% 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 most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Chemed going out to 2026, and you can see them free on our platform here..
It is also worth noting that we have found 2 warning signs for Chemed (1 is a bit unpleasant!) that you need to take into consideration.
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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.