03:05 PM EDT, 06/30/2025 (MT Newswires) -- (Updates with stock move in headline and first paragraph.)

Chemed ( CHE ) slumped 14% in recent Monday trading after the company said its Vitas unit now expects a Medicare cap revenue limitation for fiscal 2025 of $18 million to $25 million related to the Florida consolidated program, excluding Tallahassee.

Vitas' internal estimates indicated the Florida consolidated program would end the 2025 government fiscal year ending Sept. 30, or 2025 cap year, with a Medicare cap cushion, the company said, adding that actual Medicare admissions in April and May in the state of Florida were lower than anticipated and weaker than the unit's internal expectations.

Additionally, Vitas has also been awarded a certificate of need to start operations in Pinellas County in Florida, Chemed ( CHE ) said, adding that the management does not expect any "significant level" of Medicare cap revenue limitation in its Florida consolidated program for fiscal 2026.

Chemed ( CHE ) also said its Roto-Rooter subsidiary started to "experience unexpected weakness" during Q2 in its residential business demand compared with internal expectations, while the company is in the process of analyzing the impacts of these developments on its Q2 results and on its full-year outlook.

Chemed ( CHE ) is expected to report Q2 results after the market close on July 29.

Price: 483.83, Change: -75.53, Percent Change: -13.50