As the craze of earnings season draws to a close, here’s a look back at some of the most exciting (and some less so) results from Q2. Today, we are looking at senior health, home health & hospice stocks, starting with Chemed (NYSE: CHE).

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 mixed Q2. As a group, revenues beat analysts’ consensus estimates by 2%.

In light of this news, share prices of the companies have held steady. On average, they are relatively unchanged since the latest earnings results.

Weakest Q2: 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 $618.8 million, up 3.8% year on year. This print was in line with analysts’ expectations, but overall, it was a softer quarter for the company with a significant miss of analysts’ EPS estimates.

Kevin J. McNamara, Chemed’s Chief Executive Officer said, “Nick has evolved, transformed and cultivated the organization to be well positioned for the future and has elevated VITAS' leadership in the industry over the last thirteen years. We thank him for his service and wish him well in his next pursuits.”

Unsurprisingly, the stock is down 6.7% since reporting and currently trades at $435.33.

Read our full report on Chemed here, it’s free.

Best Q2: 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 $3.15 billion, up 29.1% year on year, outperforming analysts’ expectations by 5.2%. The business had a very strong quarter with a solid beat of analysts’ EPS estimates and full-year EBITDA guidance topping analysts’ expectations.

BrightSpring Health Services delivered the biggest analyst estimates beat among its peers. However, the results were likely priced into the stock as it’s traded sideways since reporting. Shares currently sit at $20.78.

Is now the time to buy BrightSpring Health Services? Access our full analysis of the earnings results here, it’s free.

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 $812.9 million, up 4.6% year on year, falling short of analysts’ expectations by 0.6%. It was a softer quarter as it posted a significant miss of analysts’ EPS estimates.

Brookdale delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 7.4% since the results and currently trades at $7.21.

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 $349.4 million, up 21.8% year on year. This print topped analysts’ expectations by 0.8%. Aside from that, it was a mixed quarter as it also logged a decent beat of analysts’ EPS estimates but a slight miss of analysts’ sales volume estimates.

The stock is up 2.9% since reporting and currently trades at $110.19.

Read our full, actionable report on Addus HomeCare here, it’s free.

AdaptHealth (NASDAQ: AHCO)

With a network of approximately 680 locations serving patients across all 50 states, AdaptHealth (NASDAQ: AHCO) provides home medical equipment, supplies, and related services to patients with chronic conditions like sleep apnea, diabetes, and respiratory disorders.

AdaptHealth reported revenues of $800.4 million, flat year on year. This result met analysts’ expectations. Aside from that, it was a slower quarter as it logged a significant miss of analysts’ EPS estimates and full-year EBITDA guidance missing analysts’ expectations.

AdaptHealth had the slowest revenue growth and weakest full-year guidance update among its peers. The stock is up 3.4% since reporting and currently trades at $9.44.

Read our full, actionable report on AdaptHealth here, it’s free.

Market Update

The Fed’s interest rate hikes throughout 2022 and 2023 have successfully cooled post-pandemic inflation, bringing it closer to the 2% target. Inflationary pressures have eased without tipping the economy into a recession, suggesting a soft landing. This stability, paired with recent rate cuts (0.5% in September 2024 and 0.25% in November 2024), fueled a strong year for the stock market in 2024. The markets surged further after Donald Trump’s presidential victory in November, with major indices reaching record highs in the days following the election. Still, questions remain about the direction of economic policy, as potential tariffs and corporate tax changes add uncertainty for 2025.

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