Better Vitas Results Raise Chemed 1Q Profit

CINCINNATI (AP) — Chemed Corp. said Wednesday its profit rose 22 percent in the first quarter due to stronger results from its Vitas Healthcare nursing homes.

Chemed said its profit grew to $19.3 million, or 85 cents per share, from $15.9 million, or 65 cents per share a year ago. Revenue rose 3 percent, to $294.9 million from $285.3 million, as results improved at Vitas, but profits at the Roto-Rooter plumbing company declined.

Analysts surveyed by Thomson Reuters expected Chemed to report a profit of 83 cents per share and $294.2 million in revenue.

The company slightly trimmed its expectations for the full year, and in morning trading, it shares slipped $1.69, or 4 percent, to $40.36.

In the first quarter, Vitas' profit grew 30 percent to $17.3 million, and its revenue rose 5 percent to $208.4 million. Revenue per day per patient grew 4.9 percent.

Roto-Rooter's profit fell 9 percent, to $8.3 million, and revenue was unchanged at $86.5 million. The company raised its prices, but total jobs fell about 6.9 percent.