Shares of Service Corporation International (SCI) experienced a surprising 6.13% drop in after-hours trading on Wednesday, despite the company reporting first-quarter results that exceeded analysts' expectations across the board. The funeral and cemetery services provider announced better-than-estimated figures for revenue, net income, adjusted earnings per share (EPS), and operating income.

According to the company's report, Service Corporation's Q1 revenue reached $1,074.2 million, surpassing the IBES estimate of $1,060 million. Net income came in at $142.9 million, beating the expected $132.3 million. Adjusted EPS stood at $0.96, outperforming the analysts' forecast of $0.91. Additionally, the company's operating income of $251.7 million exceeded the estimated $239.2 million. Service Corporation also confirmed its 2025 EPS guidance, projecting $3.70 to $4.00 per share, excluding special items.

The sharp decline in SCI's stock price, despite the positive financial results, suggests that investors may have been anticipating even stronger performance or more optimistic future guidance. The confirmation of the previously announced 2025 outlook, rather than an increase, could have disappointed some market participants who were hoping for signs of accelerated growth. Furthermore, with the stock market often forward-looking, there might be concerns about the company's ability to maintain its growth trajectory in an evolving economic landscape.