Chemed Stock Plummets on Earnings Miss and Leadership Change

Chemed Corp. (CHE -9.17%) shares tumbled 9% Wednesday after reporting disappointing Q2 earnings and cutting forward guidance. The parent company of Vitas Healthcare and Roto-Rooter posted a 22% decline in adjusted EPS despite 4% revenue growth, sparking a selloff.

Management slashed 2025 EPS projections by 12%, now forecasting $22.15 per share versus prior $25.20 estimates. The downward revision reflects persistent challenges across both business units, with Vitas Healthcare's EBITDA stagnating under Medicare billing constraints and Roto-Rooter's net income dropping 20% amid rising marketing costs.

Investors face additional uncertainty following the unexpected departure of Vitas CEO Nick Westfall. The leadership transition comes as the hospice care provider struggles with regulatory headwinds in its cap-billing model - challenges the company describes as cyclical but that continue weighing on profitability.