12:35 PM EDT, 04/26/2024 (MT Newswires) -- Chemed's ( CHE ) Q1 results were "a rare earnings miss" as its Roto-Rooter unit continued to face pressure in the quarter coupled with ineffective returns on paid advertising, Oppenheimer said in a note Thursday.

Chemed ( CHE ), however, continues to offer an attractive and stable investment opportunity, the research firm said.

"Overall, Chemed ( CHE ) reported a soft quarter, but we believe any weakness would offer an attractive buying opportunity as the company seems likely to rebound in the coming quarters," analysts, including Michael Wiederhorn, said.

The healthcare and maintenance service provider reported Q1 adjusted earnings of $5.20, compared with analysts' estimate of $5.48. Revenue was $589.2 million, lower than the $591.1 million expected by four analysts surveyed by Capital IQ.

Analysts said they will continue to keep an eye on ad spending trends as the management expects margins to rebound with the reduction in paid advertising.

Roto-Rooter, the plumbing and drain cleaning arm of Chemed ( CHE ), is looking to refocus on its commercial services and plans several initiatives to reestablish relationships in this business but expects these efforts to take time, the analysts added.

Oppenheimer has an outperform rating and a $650 price target on Chemed ( CHE ).

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