A number of stocks jumped in the afternoon session after comments from a key Federal Reserve official bolstered hopes for an interest rate cut. New York Federal Reserve President John Williams stated he sees “room for a further adjustment” in the near term, sparking a significant market rally. Following his remarks, the probability of the central bank cutting rates at its December meeting jumped from 39% to over 73%, according to the CME FedWatch tool. This positive sentiment provided relief to markets amid concerns over high valuations, particularly in AI-related stocks.
The end of the earnings season is always a good time to take a step back and see who shined (and who not so much). Let’s take a look at how senior health, home health & hospice stocks fared in Q3, starting with Chemed (NYSE:CHE).
Chemed’s third quarter was marked by continued operational challenges in both the VITAS and Roto-Rooter businesses, resulting in a negative market reaction. Management attributed the margin compression to higher costs associated with increased hospital-based admissions at VITAS and a shift toward paid leads in Roto-Rooter, which elevated expenses and weighed on profitability. CEO Kevin McNamara pointed to stabilization in VITAS’s Medicare Cap exposure and highlighted a “high watermark” in hospital admission ratios, while also noting that Roto-Rooter’s residential plumbing campaign yielded encouraging results. CFO Michael Witzeman described the quarter’s gross margin as “exactly in line with our guidance,” but acknowledged that segment margins remain below long-term targets.
Healthcare services company Chemed Corporation (NYSE:CHE) met Wall Streets revenue expectations in Q3 CY2025, with sales up 3.1% year on year to $624.9 million. Its non-GAAP profit of $5.27 per share was 1.8% below analysts’ consensus estimates.
Shares of healthcare services company Chemed Corporation (NYSE:CHE)
jumped 8.5% in the afternoon session after investors looked past a third-quarter earnings miss and focused instead on the company's decision to maintain its full-year guidance. The healthcare services company reported adjusted earnings per share of $5.27, which was 1.8% below analyst estimates and down from the prior year. Profitability also took a hit, with the operating margin contracting to 12% from 15.2% in the same period last year. On a brighter note, revenue grew 3.1% year on year to $624.9 million, meeting Wall Street's expectations. The positive stock move suggests investors were encouraged that the company reaffirmed its full-year adjusted EPS guidance of $22.15 at the midpoint, signaling confidence in its long-term outlook despite the quarterly softness.
Healthcare services company Chemed Corporation (NYSE:CHE) met Wall Street’s revenue expectations in Q3 CY2025, with sales up 3.1% year on year to $624.9 million. Its non-GAAP profit of $5.27 per share was 1.8% below analysts’ consensus estimates.
Healthcare services company Chemed Corporation (NYSE:CHE)
will be announcing earnings results this Tuesday after market hours. Here’s what you need to know.
Generating cash is essential for any business, but not all cash-rich companies are great investments.
Some produce plenty of cash but fail to allocate it effectively, leading to missed opportunities.
Chemed has gotten torched over the last six months - since April 2025, its stock price has dropped 23.7% to $436.07 per share. This was partly driven by its softer quarterly results and might have investors contemplating their next move.
Not all profitable companies are built to last - some rely on outdated models or unsustainable advantages.
Just because a business is in the green today doesn’t mean it will thrive tomorrow.
Shares of healthcare services company Chemed Corporation (NYSE:CHE)
jumped 1.2% in the afternoon session after the company received a stock rating upgrade from financial services firm Jefferies.
Personal health and wellness is one of the many secular tailwinds for healthcare companies. But financial performance has lagged recently as players offloaded surplus COVID inventories in 2023 and 2024, a headwind for overall demand.
The result? Over the past six months, the industry has tumbled by 3.1%. This performance is a noticeable divergence from the S&P 500’s 10.3% return.
Generating cash is essential for any business, but not all cash-rich companies are great investments.
Some produce plenty of cash but fail to allocate it effectively, leading to missed opportunities.
Healthcare services company Chemed Corporation (NYSE:CHE) met Wall Street’s revenue expectations in Q2 CY2025, with sales up 3.8% year on year to $618.8 million. Its non-GAAP profit of $4.27 per share was 14.3% below analysts’ consensus estimates.
