As the Q1 earnings season wraps, let’s dig into this quarter’s best and worst performers in the senior health, home health & hospice industry, including Chemed (NYSE:CHE) and its peers.
The senior health, home care, and hospice care industries provide essential services to aging populations and patients with chronic or terminal conditions. These companies benefit from stable, recurring revenue driven by relationships with patients and families that can extend many months or even years. However, the labor-intensive nature of the business makes it vulnerable to rising labor costs and staffing shortages, while profitability is constrained by reimbursement rates from Medicare, Medicaid, and private insurers. Looking ahead, the industry is positioned for tailwinds from an aging population, increasing chronic disease prevalence, and a growing preference for personalized in-home care. Advancements in remote monitoring and telehealth are expected to enhance efficiency and care delivery. However, headwinds such as labor shortages, wage inflation, and regulatory uncertainty around reimbursement could pose challenges. Investments in digitization and technology-driven care will be critical for long-term success.
The 7 senior health, home health & hospice stocks we track reported a strong Q1. As a group, revenues beat analysts’ consensus estimates by 2.3%.
Thankfully, share prices of the companies have been resilient as they are up 6.3% on average since the latest earnings results.
Chemed (NYSE:CHE)
With a unique business model combining end-of-life care and household services, Chemed (NYSE:CHE) operates two distinct businesses: VITAS, which provides hospice care for terminally ill patients, and Roto-Rooter, which offers plumbing and water restoration services.
Chemed reported revenues of $646.9 million, up 9.8% year on year. This print exceeded analysts’ expectations by 0.8%. Overall, it was a satisfactory quarter for the company with a decent beat of analysts’ EPS estimates.
The stock is down 4.2% since reporting and currently trades at $562.41.
Is now the time to buy Chemed? Access our full analysis of the earnings results here, it’s free.
Best Q1: BrightSpring Health Services (NASDAQ:BTSG)
Founded in 1974, BrightSpring Health Services (NASDAQ:BTSG) offers home health care, hospice, neuro-rehabilitation, and pharmacy services.
BrightSpring Health Services reported revenues of $2.88 billion, up 11.7% year on year, outperforming analysts’ expectations by 4.6%. The business had an exceptional quarter with a solid beat of analysts’ EPS estimates and full-year revenue guidance exceeding analysts’ expectations.
BrightSpring Health Services pulled off the highest full-year guidance raise among its peers. The market seems happy with the results as the stock is up 35.3% since reporting. It currently trades at $24.20.
Is now the time to buy BrightSpring Health Services? Access our full analysis of the earnings results here, it’s free.
Weakest Q1: Brookdale (NYSE:BKD)
With a network of over 650 communities serving approximately 59,000 residents across 41 states, Brookdale Senior Living (NYSE:BKD) operates senior living communities across the United States, offering independent living, assisted living, memory care, and continuing care retirement communities.
Brookdale reported revenues of $813.9 million, up 4% year on year, in line with analysts’ expectations. It was a slower quarter as it posted a significant miss of analysts’ EPS estimates.
As expected, the stock is down 1.6% since the results and currently trades at $6.68.
Read our full analysis of Brookdale’s results here.
Addus HomeCare (NASDAQ:ADUS)
Serving approximately 66,000 clients across 22 states with a focus on "dual eligible" Medicare and Medicaid beneficiaries, Addus HomeCare (NASDAQ:ADUS) provides in-home personal care, hospice, and home health services to elderly, chronically ill, and disabled individuals.
Addus HomeCare reported revenues of $337.7 million, up 20.3% year on year. This number came in 0.6% below analysts' expectations. All in all, it was a mixed quarter for the company.
Addus HomeCare had the weakest performance against analyst estimates among its peers. The stock is up 6% since reporting and currently trades at $110.61.
Read our full, actionable report on Addus HomeCare here, it’s free.
Option Care Health (NASDAQ:OPCH)
With a nationwide network of 177 locations serving 43 states and a team of over 4,500 clinicians, Option Care Health (NASDAQ:OPCH) is the largest independent provider of home and alternate site infusion services, delivering medications and clinical support to patients across the United States.
Option Care Health reported revenues of $1.33 billion, up 16.3% year on year. This print beat analysts’ expectations by 6.1%. It was a very strong quarter as it also produced a solid beat of analysts’ EPS estimates and full-year revenue guidance slightly topping analysts’ expectations.
Option Care Health achieved the biggest analyst estimates beat among its peers. The stock is down 3.3% since reporting and currently trades at $31.90.
Read our full, actionable report on Option Care Health here, it’s free.
Market Update
In response to the Fed’s rate hikes in 2022 and 2023, inflation has been gradually trending down from its post-pandemic peak, trending closer to the Fed’s 2% target. Despite higher borrowing costs, the economy has avoided flashing recessionary signals. This is the much-desired soft landing that many investors hoped for. The recent rate cuts (0.5% in September and 0.25% in November 2024) have bolstered the stock market, making 2024 a strong year for equities. Donald Trump’s presidential win in November sparked additional market gains, sending indices to record highs in the days following his victory. However, debates continue over possible tariffs and corporate tax adjustments, raising questions about economic stability in 2025.
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