Benzinga | Apr 26, 2021 10:44AM EDT

Earnings Outlook for Chemed

On Tuesday, April 27, Chemed (NYSE:CHE) will release its latest earnings report. Decipher the announcement with Benzinga's help.

Net Income, Earnings, And Earnings Per Share

Earnings and EPS are useful metrics of profitability. Total earnings also known as net income is equal to total revenue minus total expenses. Dividing net income by the total number of shares outstanding yields EPS.

Earnings And Revenue

Chemed EPS is expected to be around $4.02, according to sell-side analysts. Sales will likely be near $510.26 million. In the same quarter last year, Chemed reported earnings per share of $3.68 on revenue of $515.80 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 match the consensus estimate when it reports Tuesday, earnings would be up 9.24%. Revenue would be down 1.07% on a year-over-year basis. Here is how the company's reported EPS has compared to analyst estimates in the past:

Quarter Q4 2021 Q3 2020 Q2 2020 Q1 2020EPS Estimate 5.13 3.97 3.75 3.65EPS Actual 5.13 4.86 4.41 3.68Revenue Estimate 537.20 M 514.21 M 522.89 M 520.18 MRevenue Actual 533.29 M 528.30 M 502.20 M 515.80 M

Stock Performance

For a full 12 months, the return has risen by 6.35%. Given that these returns are generally positive, long-term shareholders are probably relaxed going into this earnings release. Long-term shareholders are already enjoying 12-month gains prior to the announcement.

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.