Chemed Q3 Profit Falls; Raises '08 Outlook
For the third quarter, the company reported net income of $17.9 million, or 79 cents per share, compared with $18.1 million, or 74 cents per share, a year earlier. Revenue increased 6 percent to $288 million.
Analysts were expecting earnings of 79 cents a share, excluding special items but including stock-based compensation, on revenue of $285.3 million, according to Reuters Estimates.
Chemed said the third quarter continued to show recessionary pressure hurting the demand for certain discretionary plumbing and drain cleaning services, resulting in a 13 percent fall in call volume in Roto-Rooter's centralized call centers. However, the company expects revenue from the Vitas segment to grow 8 percent to 8.5 percent during 2008, and expects to earn $3.35 to $3.40 a share from continuing operations for the year.