Core Viewpoint - Carriage Services (CSV) shares experienced a significant increase of 5.7% to close at $46.91, supported by strong trading volume and a strategic focus on acquisitions, margin recovery, and debt reduction, which enhances the company's growth outlook [1]. Company Performance - Carriage Services is projected to report quarterly earnings of $0.70 per share, reflecting a year-over-year increase of 9.4%. However, revenues are expected to decline slightly to $100.47 million, a decrease of 0.2% compared to the same quarter last year [2]. - The consensus EPS estimate for Carriage Services has remained stable over the past 30 days, indicating that stock price movements may not sustain without changes in earnings estimate revisions [4]. Industry Context - Carriage Services operates within the Zacks Funeral Services industry, where Service Corp. (SCI) also competes. SCI's stock closed 0.5% higher at $83.18, with a 6.1% return over the past month [4]. - Service Corp.'s consensus EPS estimate for its upcoming report is $0.83, representing a year-over-year change of 5.1%, and it currently holds a Zacks Rank of 3 (Hold) [5].

Group 1: Macy's - Macy's operates as an omnichannel retail organization with three brands: Macy's, Bloomingdale's, and bluemercury [1] - The company has a Zacks Rank of 1 (Strong Buy) and a Zacks Consensus Estimate for current year earnings has increased by 5.1% over the last 60 days [1] - Macy's has a price-to-earnings ratio (P/E) of 9.28, significantly lower than the industry average of 19.10, and possesses a Value Score of A [2] Group 2: First Financial Bank - First Financial Bank is a financial holding company engaged in commercial banking and other financial activities [2] - The company also carries a Zacks Rank of 1 and has seen a 6.1% increase in the Zacks Consensus Estimate for current year earnings over the last 60 days [2] - First Financial Bank has a P/E ratio of 9.17 compared to the industry average of 11, and it holds a Value Score of B [3] Group 3: Carriage Services - Carriage Services is a leading provider of death care services and products in the United States [3] - The company has a Zacks Rank of 1 and has experienced a 3.5% increase in the Zacks Consensus Estimate for current year earnings over the last 60 days [3] - Carriage Services has a P/E ratio of 13.21, which is lower than the industry average of 19.90, and it has a Value Score of B [4]

Group 1 - Carriage Services, Inc. has acquired substantially all the assets of Faith Chapel Funeral Homes & Crematory, which includes two funeral homes and a crematory in the Pensacola, Florida market [1][2] - Faith Chapel has a 60-year history of serving the Pensacola community, and the acquisition is seen as a continuation of their legacy with Carriage Services due to its strong reputation and dedication to service [2] - Carriage Services operates 164 funeral homes across 24 states and 28 cemeteries in 9 states, focusing on delivering premier experiences through innovation and elevated service [3] Group 2 - The acquisition allows Carriage Services to serve approximately 700 families a year in the Pensacola area, enhancing its presence in Florida [2] - The leadership of Carriage Services expresses enthusiasm for continuing their acquisition strategy to create long-term value and accelerate growth towards their 2030 Vision [2]

Group 1 - Carriage Services (CSV) is a member of the Consumer Staples sector, which includes 180 individual stocks and holds a Zacks Sector Rank of 15 [2] - The Zacks Rank system emphasizes earnings estimates and revisions, with Carriage Services currently holding a Zacks Rank of 2 (Buy) [3] - The Zacks Consensus Estimate for Carriage Services' full-year earnings has increased by 3.3% in the past quarter, indicating improved analyst sentiment [3] Group 2 - Year-to-date, Carriage Services has returned 7.1%, significantly outperforming the Consumer Staples sector's average return of 1.9% [4] - Carriage Services belongs to the Funeral Services industry, which has an average return of -0.5% this year, further highlighting CSV's strong performance [5] - In contrast, Grocery Outlet Holding Corp., another stock in the Consumer Staples sector, has also returned 7.1% year-to-date, but it belongs to a different industry [4][6] Group 3 - The Funeral Services industry, which includes Carriage Services, is currently ranked 10 in the Zacks Industry Rank [5] - The Consumer Products - Staples industry, which includes Grocery Outlet Holding Corp., is ranked 167 and has returned -5.3% this year [6] - Investors may want to monitor both Carriage Services and Grocery Outlet Holding Corp. for their solid performance in the Consumer Staples sector [6]

Group 1 - Carriage Services, Inc. has acquired substantially all the assets of Osceola Memory Gardens and related funeral homes and crematories, enhancing its presence in the Orlando, Florida metro market [1][3] - The acquisition includes a combination of a cemetery, six funeral homes, a crematory, and a dedicated cremation business, which serves thousands of families annually [3] - The acquisition aligns with Carriage's growth strategy focused on partnering with premier businesses in large, growing markets, marking a significant step towards its 2030 Vision [3][4] Group 2 - Bob Russell, President of Osceola, expressed confidence in the partnership with Carriage, highlighting their commitment to service and community support [2] - Steve Metzger, President of Carriage Services, emphasized the unique nature of the Osceola businesses and the intention to grow together with the Osceola team [2] - Carlos Quezada, Vice Chairman and CEO, stated that this acquisition reengages Carriage in its long-term growth strategy and reinforces its commitment to purposeful growth [3]

Economic Overview - U.S. consumer confidence dropped to 97.4 in August from 98.7 in July, indicating a decline of 1.3 points, with short-term expectations for income, business conditions, and employment also falling to 74.8 [4][5] - Concerns about the economy have been exacerbated by tariffs imposed by President Trump, which have raised inflation fears and impacted consumer confidence [5][6] - A weak labor market, characterized by slow job additions, has further fueled recession fears, despite low layoffs and unemployment rates [7] Investment Recommendations - Given the economic uncertainty, it is advisable to invest in low-beta defensive stocks from the utility and consumer staples sectors, which include Atmos Energy Corporation (ATO), Fortis, Inc. (FTS), Northwest Natural Holding Company (NWN), Ingredion Incorporated (INGR), and Carriage Services, Inc. (CSV) [2][10] - These stocks are characterized by a beta greater than 0 but less than 1, indicating lower volatility, and they also offer high dividend yields [3] Company Profiles - **Atmos Energy Corporation (ATO)**: Engaged in regulated natural gas distribution and storage, serving approximately 3.3 million customers across eight states. Expected earnings growth rate is 7.2% for the current year, with a beta of 0.75 and a dividend yield of 2.09% [8][9] - **Fortis, Inc. (FTS)**: Operates in the electric and gas utility sector, primarily in Canada and the Caribbean. Expected earnings growth rate is 4.6% for the current year, with a beta of 0.48 and a dividend yield of 3.57% [10][11] - **Northwest Natural Holding Company (NWN)**: Focuses on natural gas distribution systems and pipeline projects, serving residential, commercial, and industrial customers. Expected earnings growth rate is 25.3% for the current year, with a beta of 0.59 and a dividend yield of 4.72% [12][13] - **Ingredion Incorporated (INGR)**: Provides ingredient solutions specializing in nature-based sweeteners and starches, serving various sectors. Expected earnings growth rate is 6.7% for the current year, with a beta of 0.77 and a dividend yield of 2.47% [14] - **Carriage Services, Inc. (CSV)**: A leading provider of death care services in the U.S., offering a range of funeral and burial services. Expected earnings growth rate is 23.4% for the current year, with a beta of 0.86 and a dividend yield of 1.03% [15][16]

Group 1 - Carriage Services (CSV) is currently outperforming its peers in the Consumer Staples sector with a year-to-date return of approximately 21.2%, compared to the sector average of 5.1% [4] - The Zacks Rank for Carriage Services is 2 (Buy), indicating a positive earnings outlook and strong analyst sentiment, with a 3.3% increase in the full-year earnings estimate over the past quarter [3][4] - Carriage Services is part of the Funeral Services industry, which ranks 36 in the Zacks Industry Rank, and has performed better than the industry average return of about 1% this year [6] Group 2 - Another strong performer in the Consumer Staples sector is L'Oreal SA (LRLCY), which has returned 26% year-to-date and also holds a Zacks Rank of 2 (Buy) [5] - The Consumer Products - Staples industry, which includes L'Oreal SA, is ranked 189 and has seen a decline of -3.7% since the beginning of the year [6] - Investors should monitor both Carriage Services and L'Oreal SA for potential continued strong performance in the Consumer Staples sector [7]

Core Insights - The article discusses the investment potential of a specific company, highlighting its strong market position and growth prospects [1][2] Company Analysis - The company has demonstrated robust financial performance, with significant revenue growth reported in the latest quarter [1] - Key metrics indicate an increase in market share, suggesting competitive advantages over peers [1] - The management team has outlined strategic initiatives aimed at further enhancing operational efficiency and profitability [1] Industry Context - The industry is experiencing a favorable environment, driven by increasing demand and technological advancements [1] - Competitive dynamics within the industry are shifting, with emerging players posing new challenges [1] - Regulatory changes are anticipated, which may impact operational frameworks and market strategies [1]

Core Viewpoint - Carriage Services (CSV) shares have shown a 1.2% increase over the past four weeks, closing at $47.49, with analysts suggesting a potential upside of 27% based on a mean price target of $60.33 [1] Price Targets and Analyst Consensus - The average price target for CSV ranges from a low of $56.00 to a high of $65.00, with a standard deviation of $4.51, indicating a relatively tight clustering of estimates [2] - The lowest estimate suggests a 17.9% increase from the current price, while the highest estimate indicates a 36.9% upside [2] - A low standard deviation signifies strong agreement among analysts regarding the stock's price movement [9] Earnings Estimates and Market Sentiment - Analysts have shown strong agreement in revising earnings per share (EPS) estimates higher for CSV, which correlates with potential stock price increases [11] - The Zacks Consensus Estimate for the current year has risen by 3.3% over the past month, with two estimates increasing and no negative revisions [12] - CSV holds a Zacks Rank 1 (Strong Buy), placing it in the top 5% of over 4,000 ranked stocks based on earnings estimate factors, indicating strong potential for upside [13] Caution on Price Targets - While price targets are often sought after, they can mislead investors, and reliance solely on them may not yield favorable returns [3][10] - Analysts may set overly optimistic price targets due to business incentives, which can inflate expectations [8]

PART I [Item 1. Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) This section presents unaudited condensed consolidated financial statements and notes, detailing financial position and performance [Unaudited Condensed Consolidated Balance Sheets](index=3&type=section&id=Unaudited%20Condensed%20Consolidated%20Balance%20Sheets%20as%20of%20June%2030%2C%202025%20and%20December%2031%2C%202024) This statement provides a snapshot of the company's assets, liabilities, and equity at specific points in time, reflecting changes over the period Unaudited Condensed Consolidated Balance Sheets (in thousands) | Metric | June 30, 2025 | December 31, 2024 | Change | Percentage Change | | :-------------------------------- | :----------------------------- | :------------------------------- | :-------------------- | :------------------ | | Total assets | $1,275,714 | $1,279,580 | $(3,866) | -0.30% | | Total liabilities | $1,040,294 | $1,071,030 | $(30,736) | -2.87% | | Total stockholders' equity | $235,420 | $208,550 | $26,870 | 12.88% | | Cash and cash equivalents | $1,398 | $1,165 | $233 | 20.00% | | Accounts receivable, net | $34,830 | $30,193 | $4,637 | 15.36% | | Goodwill | $410,703 | $414,859 | $(4,156) | -1.00% | | Credit facility | $111,458 | $135,382 | $(23,924) | -17.67% | - Total assets decreased slightly by **0.30%** to **$1,275,714 thousand** at June 30, 2025, from **$1,279,580 thousand** at December 31, 2024, primarily influenced by a decrease in goodwill due to divestitures[10](index=10&type=chunk)[42](index=42&type=chunk) - Total liabilities saw a notable decrease of **2.87%** to **$1,040,294 thousand**, driven by a significant reduction in the credit facility balance[10](index=10&type=chunk) - Stockholders' equity increased by **12.88%** to **$235,420 thousand**, reflecting improved financial health and retained earnings[10](index=10&type=chunk) [Unaudited Condensed Consolidated Statements of Operations](index=5&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Operations%20for%20the%20Three%20and%20Six%20Months%20ended%20June%2030%2C%202025%20and%202024) This statement details the company's revenues, expenses, and net income over specific periods, illustrating profitability trends Unaudited Condensed Consolidated Statements of Operations (in thousands) | Metric | Three months ended June 30, 2025 | Three months ended June 30, 2024 | Six months ended June 30, 2025 | Six months ended June 30, 2024 | | :-------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Revenue | $102,147 | $102,318 | $209,216 | $205,811 | | Gross profit | $35,935 | $36,993 | $73,777 | $74,255 | | Operating income | $23,998 | $18,369 | $55,562 | $37,846 | | Net income | $11,739 | $6,259 | $32,665 | $13,232 | | Basic EPS | $0.75 | $0.41 | $2.09 | $0.87 | | Diluted EPS | $0.74 | $0.40 | $2.07 | $0.85 | | Dividends per share | $0.1125 | $0.1125 | $0.2250 | $0.2250 | - Net income for the three months ended June 30, 2025, increased by **$5.5 million** to **$11,739 thousand**, compared to **$6,259 thousand** in the prior year, driven by decreased general, administrative, and other expenses and lower interest expense[13](index=13&type=chunk)[150](index=150&type=chunk) - For the six months ended June 30, 2025, net income surged by **$19.4 million** to **$32,665 thousand**, primarily due to a **$10.9 million** decrease in general, administrative, and other expenses (including one-time costs in the prior year), a **$9.4 million** increase in gain on divestitures, and a **$2.7 million** decrease in interest expense[13](index=13&type=chunk)[153](index=153&type=chunk) - Basic EPS increased significantly to **$0.75** for the three months and **$2.09** for the six months ended June 30, 2025, from **$0.41** and **$0.87** respectively in the prior year, reflecting improved profitability[13](index=13&type=chunk) [Unaudited Condensed Consolidated Statements of Cash Flows](index=6&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Cash%20Flows%20for%20the%20Six%20Months%20ended%20June%2030%2C%202025%20and%202024) This statement categorizes cash inflows and outflows from operating, investing, and financing activities, showing liquidity changes Cash Flow Activity (in thousands) | Cash Flow Activity | Six months ended June 30, 2025 | Six months ended June 30, 2024 | Change (in thousands) | | :-------------------------------- | :----------------------------- | :----------------------------- | :-------------------- | | Net cash provided by operating activities | $21,877 | $21,860 | $17 | | Net cash provided by investing activities | $12,813 | $4,392 | $8,421 | | Net cash used in financing activities | $(34,457) | $(26,272) | $(8,185) | | Net increase (decrease) in cash and cash equivalents | $233 | $(20) | $253 | | Cash and cash equivalents at end of period | $1,398 | $1,503 | $(105) | - Net cash provided by operating activities remained stable at approximately **$21.9 million** for both periods[16](index=16&type=chunk)[141](index=141&type=chunk) - Net cash provided by investing activities increased significantly by **$8.4 million** to **$12.8 million**, primarily due to higher proceeds from divestitures and sale of other assets[16](index=16&type=chunk)[142](index=142&type=chunk)[143](index=143&type=chunk) - Net cash used in financing activities increased by **$8.2 million** to **$34.5 million**, mainly due to higher net payments on employee equity plans and credit facility[16](index=16&type=chunk)[146](index=146&type=chunk) [Unaudited Condensed Consolidated Statements of Changes in Stockholders' Equity](index=7&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Changes%20in%20Stockholders%27%20Equity%20for%20the%20Three%20and%20Six%20Months%20ended%20June%2030%2C%202025%20and%202024) This statement tracks changes in equity components, including net income, dividends, and stock-based compensation, over time Total Stockholders' Equity (in thousands) | Metric | June 30, 2025 | December 31, 2024 | June 30, 2024 | | :------------------------------------ | :------------ | :---------------- | :------------ | | Total Stockholders' Equity (Six months) | $235,420 | $208,550 | $187,887 | | Net income (Six months) | $32,665 | N/A | $13,232 | | Dividends on common stock (Six months) | $(3,488) | N/A | $(3,390) | | Stock-based compensation expense (Six months) | $3,705 | N/A | $2,407 | - Total stockholders' equity increased to **$235,420 thousand** at June 30, 2025, from **$208,550 thousand** at December 31, 2024, primarily driven by net income of **$32,665 thousand**[18](index=18&type=chunk) - Stock-based compensation expense for the six months ended June 30, 2025, was **$3,705 thousand**, an increase from **$2,407 thousand** in the prior year[18](index=18