Deathcare services provider Service Corp Q3 adjusted profit beats estimates on robust growth in cemetery segment

Reuters
Oct 30
Deathcare services provider Service Corp Q3 adjusted profit beats estimates on robust growth in cemetery segment

Overview

  • Service Corp Q3 revenue grows 4.4% yr/yr, beating analyst expectations, per LSEG data

  • Adjusted EPS for Q3 beats consensus, growing 10% over prior year

  • Company raises 2025 cash flow guidance, indicating confidence in operational performance

Outlook

  • Service Corporation raises 2025 cash flow guidance to $910 mln-$950 mln

  • Company confirms 2025 EPS midpoint, narrows range to $3.80-$3.90

  • Service Corporation expects 2025 EPS growth within 8%-12% framework

Result Drivers

  • CEMETERY SALES - Strong performance in cemetery segment led by 9.6% increase in preneed sales production, driving cemetery revenue growth

  • FUNERAL SALES MIX - Increase in funeral sales average offset by decline in services performed

  • NON-FUNERAL HOME SALES - Non-funeral home sales average grew 13.4%, contributing positively despite fewer services performed

Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Revenue

Beat

$1.05 bln

$1.04 bln (5 Analysts)

Q3 Adjusted EPS

Beat

$0.87

$0.83 (5 Analysts)

Q3 EPS

$0.83

Q3 Net Income

$117.50 mln

Q3 Operating Income

$226.40 mln

Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the personal services peer group is "buy"

  • Wall Street's median 12-month price target for Service Corporation International is $93.00, about 13.1% above its October 28 closing price of $80.84

  • The stock recently traded at 20 times the next 12-month earnings vs. a P/E of 20 three months ago

Press Release: ID:nPn1RHv3ba

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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