Chemed Corporation (CHE, Financial) is one of the largest providers of hospice services through its VITASsegment and provides plumbing, drain cleaning, and water restoration services through its Roto-Rooter segment. The company reported in-line results and up until this quarter was not greatly impacted by the pandemic. Management noted on the quarterly earnings call that hospice admissions will be negatively impacted by disruptions in parts of its referral network which will pressure top-line results. Partly offsetting this anticipated weakness is continued strength within Roto-Rooter’s residential business and management is optimistic about a turn in the commercial business. The near-term pandemic headwinds have ended the “beat and raise” streak for Chemed but is well-positioned for the long term.
From Keeley Teton's Small Cap Dividend Value Fund first-quarter 2021 commentary.
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