Market Overview

A Preview Of Chemed's Earnings

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Chemed (NYSE: CHE) announces its next round of earnings this Thursday, October 29. Here is Benzinga's look at Chemed's Q3 earnings report.

Net Income, Earnings, And Earnings Per Share

Earnings and especially earnings per share (EPS) are useful measures of a company's profitability. Total earnings, which is also referred to as net income, equals total revenue minus total expenses. EPS equals to net income divided by the number of shares outstanding.

Earnings And Revenue

Based on Chemed management projections, analysts predict EPS of $3.97 on revenue of $514.21 million. Chemed EPS in the same period a year ago totaled $3.46. Sales were $480.61 million.

What Are Analyst Estimates And Earnings Surprises, And Why Do They Matter?

Analysts who cover this company will publish forward-looking estimates of its revenue and EPS each quarter. Averaging together every EPS and revenue prediction that each analyst makes about a company in a quarter yields the "consensus estimates." A company posting earnings or revenue above or below the consensus estimate is known as an "earnings surprise" and may move the stock by a considerable margin.

If the company were to report earnings in line when it publishes results Thursday, earnings would be up 14.74%. Sales would be have grown 6.99% from the same quarter last year. Here is how the company's EPS has stacked up against analyst estimates in the past:

Quarter Q2 2020 Q1 2020 Q4 2020 Q3 2019
EPS Estimate 3.75 3.65 4.09 3.31
EPS Actual 4.41 3.68 4.22 3.46
Revenue Estimate 522.89 M 520.18 M 524.19 M 478.89 M
Revenue Actual 502.20 M 515.80 M 522.32 M 480.61 M

Stock Performance

Shares of Chemed were trading at $484.36 as of October 27. Over the last 52-week period, shares are up 21.29%. Given that these returns are generally positive, long-term shareholders are probably satisfied going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Chemed is scheduled to hold the call at 10:00:00 ET and can be accessed here.

 

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Posted-In: Earnings