Core Viewpoint - Service Corp. (SCI) reported quarterly earnings of $1.06 per share, exceeding the Zacks Consensus Estimate of $1.05 per share, and showing an increase from $0.93 per share a year ago, indicating a positive earnings surprise of 0.95% [1] Group 1: Earnings and Revenue Performance - The company posted revenues of $1.09 billion for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 0.74%, and showing a slight increase from $1.06 billion year-over-year [2] - Over the last four quarters, Service Corp. has exceeded consensus EPS estimates two times and topped consensus revenue estimates four times [2] Group 2: Stock Performance and Outlook - Service Corp. shares have declined approximately 3.1% since the beginning of the year, contrasting with the S&P 500's gain of 3.2% [3] - The company's current consensus EPS estimate for the upcoming quarter is $0.95 on revenues of $1.08 billion, and for the current fiscal year, it is $3.92 on revenues of $4.32 billion [7] Group 3: Industry Context - The Funeral Services industry, to which Service Corp. belongs, is currently ranked in the bottom 11% of over 250 Zacks industries, indicating potential challenges ahead [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact Service Corp.'s stock performance [5]

Financial Performance - Adjusted earnings per share grew 14% in Q4 2024, reaching $1.06, while GAAP earnings per share increased 12% to $1.04[5] - Revenue for Q4 2024 was $1,093 million, a 4% increase from $1,056 million in Q4 2023, driven by growth in both funeral and cemetery segments[9] - Full year 2024 adjusted earnings per share totaled $3.53, consistent with the previous year, while adjusted operating cash flow reached $977 million[5] - Net income attributable to common stockholders for Q4 2024 was $151,354,000, up from $138,395,000 in Q4 2023, representing an increase of 9.3%[22] - Basic earnings per share for Q4 2024 was $1.05, compared to $0.94 in Q4 2023, marking an increase of 11.7%[22] - Net income attributable to common stockholders for the twelve months ended December 31, 2024, was $518.6 million, or $3.53 per diluted share[52] Revenue Breakdown - Total revenue for the consolidated funeral segment in Q4 2024 was $587.7 million, compared to $573.2 million in Q4 2023, reflecting a growth of 2.8%[27] - Total revenue for the consolidated cemetery segment in Q4 2024 was $505.3 million, an increase from $482.6 million in Q4 2023, representing a growth of 4.7%[27] - Total comparable funeral revenue increased by $5.4 million, or 1.0%, driven by an $18.5 million increase in core general agency and other revenue, offset by an $8.8 million decrease in core funeral revenue[41] - Total comparable cemetery revenue increased by $20.2 million, or 4.2%, with core revenue growing by $20.7 million, or 4.6%[36] Profitability Metrics - Gross profit for Q4 2024 increased by $18 million, or 6%, compared to the same quarter last year[9] - Gross profit for Q4 2024 was $305,890,000, compared to $287,562,000 in Q4 2023, reflecting a gross profit margin of 27.9%[22] - The company reported a gross profit percentage of 21.3% for the consolidated funeral segment in Q4 2024, slightly down from 21.4% in Q4 2023[27] - Comparable gross profit increased by $3.6 million to $125.9 million, with a gross profit percentage increase of 40 basis points to 21.9%[41] - Comparable cemetery gross profit rose by $14.1 million to $179.6 million, with a gross profit percentage increase of 150 basis points to 35.8%[45] Cash Flow and Investments - Net cash provided by operating activities for Q4 2024 was $264 million, down from $278 million in Q4 2023, impacted by legal and restructuring payments[15] - Cash flows from operating activities for the twelve months ended December 31, 2024, were $944,912,000, an increase from $869,043,000 in 2023[26] - The company plans to invest $315 million in capital expenditures for maintenance, cemetery development, and digital investments in 2025[12] - Total capital expenditures increased by $18.3 million to $112.3 million in the current quarter, driven by capital improvements at existing field locations[46] Debt and Assets - Total assets as of December 31, 2024, were $17,379,438,000, up from $16,355,400,000 in 2023, indicating a growth of 6.3%[24] - The company’s long-term debt as of December 31, 2024, was $4,751,448,000, compared to $4,649,155,000 in 2023, indicating an increase of 2.2%[24] Future Guidance - 2025 adjusted earnings per share guidance is set between $3.70 and $4.00, with a midpoint of $3.85, aligning with long-term growth expectations of 8%-12%[9] Sales Performance - Comparable preneed cemetery sales production grew by 2.0% in Q4 2024, and core funeral sales average increased by 2.7%[9] - Core funeral revenue decreased by $8.8 million, or 1.8%, primarily due to a 4.4% decrease in core funeral services performed, despite a 2.7% growth in core average revenue per service[41] - Recognized preneed revenue increased by $19.3 million, or 5.6%, driven by a $14.1 million increase in recognized preneed property revenue[36] - Non-funeral home preneed sales revenue decreased by $6.4 million, or 25.0%, primarily due to a decline in non-funeral home preneed sales production[41] - Core average revenue per contract sold for preneed sales increased by $99 to $6,698, reflecting a 1.5% growth[41] - Total comparable average revenue per service increased by $140 to $5,721, reflecting a 2.5% growth[41] Special Items - Losses on divestitures and impairment charges for the twelve months ended December 31, 2024, were $12.5 million, impacting earnings by $0.09 per diluted share[52] - Earnings excluding special items for the fourth quarter of 2024 were $154.8 million, or $1.06 per diluted share[50]

Conference call on Thursday, February 13, 2025, at 8:00 a.m. Central Time. HOUSTON, Feb. 12, 2025 /PRNewswire/ -- Service Corporation International (NYSE: SCI), the largest provider of deathcare products and services in North America, today reported results for the fourth quarter of 2024.Highlights: Revenue increased $37 million, or 4%, over the fourth quarter of 2023 with growth in both the funeral and cemetery segments Comparable preneed cemetery sales production grew 2.0% in the current quarter Comparabl ...

Service Corporation International (SCI) is likely to register top and bottom-line growth when it reports fourth-quarter 2024 earnings on Feb. 12. The Zacks Consensus Estimate for revenues is pegged at $1.08 billion, indicating a 2.8% increase from the prior-year quarter’s reported figure.The consensus mark for earnings has remained unchanged in the past 30 days at $1.05 per share, which suggests a 12.9% jump from the figure reported in the year-ago quarter. SCI has a trailing four-quarter earnings surprise ...

Wall Street analysts expect Service Corp. (SCI) to post quarterly earnings of $1.05 per share in its upcoming report, which indicates a year-over-year increase of 12.9%. Revenues are expected to be $1.09 billion, up 2.8% from the year-ago quarter.The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. This represents how the covering analysts, as a whole, have reassessed their initial estimates during this timeframe.Before a company announces its earnings, it is essential to ...

HOUSTON, Jan. 30, 2025 /PRNewswire/ -- Service Corporation International (NYSE: SCI) announced it expects to issue a press release with financial results for the fourth quarter 2024 on Wednesday, February 12, 2025.  A conference call will be hosted by SCI Management on Thursday, February 13, 2025.  Details of the conference call are as follows:  What:    Service Corporation International Fourth Quarter 2024 Earnings Conference Call When:    Thursday, February 13, at 8:00 a.m. Central Time ...

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Service Corporation International (SCI) , a dominant player in the North American deathcare industry, is well-positioned to benefit from the essential nature of its services, which remain resilient during economic downturns. The company’s diverse portfolio, including traditional and modern burial and memorial services, caters to a wide range of consumer preferences, creating multiple revenue streams. The ongoing demographic shift, particularly the aging of the baby boomer generation, presents a strong tailw ...

Core Insights - Service Corporation International (SCI) has experienced a stock price increase of 28.1% over the past six months, outperforming the industry growth of 26.8% and the broader S&P 500's gains of 4.4% [1] - The company closed at $88.60, nearing its 52-week high of $89.31, with technical indicators suggesting bullish sentiment as it trades above its 50-day and 200-day moving averages [4] Company Performance - SCI benefits from a vast network of funeral homes and cemeteries, providing recession resilience due to the essential nature of its services, which are largely immune to discretionary spending cuts [5] - The company has adopted a disciplined approach to expansion, investing $123 million in acquiring 10 funeral homes and two cemeteries in high-growth metropolitan markets during Q3 2024 [6] - An additional $31 million was allocated for real estate purchases in key states like California, Florida, and Texas, which are experiencing strong demographic growth [6] Strategic Acquisitions - Acquisitions allow SCI to leverage scale advantages, enhancing operational efficiencies and profitability through cost savings in procurement, marketing, and administration [7] - The strategic focus on high-growth areas enables the company to broaden its service capabilities, particularly in urban regions where demand for personalized memorial services is increasing [7] - These moves align with demographic trends, particularly the aging baby boomer population, which is expected to drive demand for funeral and cemetery services over the next two decades [8] Financial Metrics - SCI's forward 12-month price-to-earnings (P/E) ratio stands at 22.82, above the industry average of 21.46, indicating that investors may be paying a premium for the stock [10] - The company faces year-over-year challenges due to the pandemic's pull-forward effects, with a slight decline in funeral volumes reported in Q3 2024 [13] - Cemetery revenues remained flat year-over-year in Q3 2024, with a $5 million increase in endowment care trust fund income offset by declines in core revenues [14] Operational Challenges - Pre-need cemetery sales production fell by 2.5% due to a decline in large sales activity, compounded by development delays in major locations [14] - The funeral segment gross profit margins decreased by 50 basis points to 19.3% in Q3, attributed to inflationary pressures outpacing revenue growth [15] - Persistent inflation and rising fixed costs may further erode margins, limiting the company's ability to grow net income [15] Investment Outlook - SCI's expansive network and recession-proof business model solidify its leadership in the North American deathcare industry, supported by strategic acquisitions and demographic-driven opportunities [16] - However, the stock's premium valuation and near-term challenges, including inflationary pressures and flat revenue growth, may limit momentum [16]

Core Viewpoint - Service Corp International reported better-than-expected third-quarter adjusted EPS results, although quarterly sales slightly missed analyst expectations [1][2]. Financial Performance - The company reported adjusted earnings per share of $0.79, exceeding the analyst consensus estimate of $0.77 [1][2]. - Quarterly sales amounted to $1.014 billion, which was below the analyst consensus estimate of $1.016 billion [1]. - Net cash provided by operating activities, excluding special items, was $269 million [2]. Future Outlook - Service Corp International anticipates a fourth-quarter adjusted loss of $1.00 to $1.10 per share, contrasting with estimates of a $0.77 per share loss [2]. Market Reaction - Following the earnings announcement, Service Corp International shares increased by 0.2%, trading at $81.79 [3]. - Analysts adjusted their price targets for the stock, with Raymond James raising it from $80 to $85 and Truist Securities increasing it from $84 to $92 [3].