Financial Data and Key Metrics Changes - Adjusted earnings per share for Q4 2024 was $1.06, up from $0.93 in the prior year, reflecting a growth of $0.14 per share from operating income [7][8] - Total adjusted operating cash flow for Q4 was $268 million, exceeding expectations, with full-year adjusted operating cash flow reaching over $975 million [26][29] - The effective tax rate for 2025 is anticipated to be about 25.5%, which is 180 basis points higher than 2024 [18][39] Business Line Data and Key Metrics Changes - Comparable funeral revenues increased by over $5 million or about 1% year-over-year, while core funeral revenues decreased by $9 million or about 2% due to a 4.4% decrease in core funeral services performed [9][10] - Comparable cemetery revenue increased by $20 million or about 4%, primarily driven by a $21 million increase in core revenue [15][16] - Preneed funeral sales production decreased by $27 million or about 9% compared to Q4 2023, while comparable preneed cemetery sales production increased by $7 million or about 2% [12][17] Market Data and Key Metrics Changes - The company expects flat to slightly down funeral volume in 2025 compared to 2024, with average revenue per case growing at inflationary rates [19][20] - The anticipated growth for preneed cemetery sales production is in the low to mid-single-digit percentage range, resulting in cemetery revenue growth of about 2% to 3% [21] Company Strategy and Development Direction - The company is transitioning from trust to insurance-funded preneed contracts, with expectations of increased underwritten insurance product sales production [13][70] - The 2025 guidance for adjusted earnings per share is set between $3.70 and $4.00, indicating a growth of 5% to 13% [18] - The company plans to continue returning capital to shareholders through dividends and share buybacks, maintaining a disciplined approach [42] Management's Comments on Operating Environment and Future Outlook - Management noted that the impact of COVID-19 is diminishing, with life expectancy numbers returning to normal, which may stabilize funeral volumes [62][90] - The company anticipates a gradual increase in service volumes as the first baby boomers turn 80 next year, projecting a slow stair-step growth over the next few years [124] Other Important Information - The company invested $140 million in Q4 2024 into current locations, growth opportunities, and acquisitions, with a total of $348 million in maintenance capital expenditures for the full year [30][31] - A restructuring charge of over $11 million was recorded, primarily related to corporate and back-office functions, aimed at improving efficiency [99][102] Q&A Session Summary Question: What is the expected pretax benefit from the general agency and acquisition timing? - Management indicated that the estimated benefit is likely a bit lower than $40 million to $45 million but not dramatically off [46][48] Question: How is the long-term funeral pricing outlook? - Management suggested that the pricing growth may settle closer to 100 basis points rather than 150, with CPI being a fair way to assess pricing [50][53] Question: What is the outlook for funeral volumes and case growth in 2025? - Management acknowledged a potential for flat to slightly down volumes, influenced by the residual effects of COVID-19 [62][63] Question: How is the transition from trust to preneed insurance sales progressing? - Management clarified that 75% of production has been converted in key states, with expectations for stabilization and growth in the back half of the year [68][70] Question: What is the current status of the acquisition pipeline? - Management confirmed that the acquisition pipeline remains robust, with hopes to exceed the initial guidance of $75 million to $125 million based on market conditions [76][79]

Core Insights - Service Corp. (SCI) reported revenue of $1.09 billion for the quarter ended December 2024, reflecting a year-over-year increase of 3.5% and a surprise of +0.74% over the Zacks Consensus Estimate [1] - Earnings per share (EPS) for the quarter was $1.06, up from $0.93 in the same quarter last year, with an EPS surprise of +0.95% compared to the consensus estimate of $1.05 [1] Financial Performance Metrics - Total comparable funeral average revenue per service was $5,721, exceeding the two-analyst average estimate of $5,667.83 [4] - Funeral services performed totaled 88,934, which was below the two-analyst average estimate of 91,395 [4] - Cemetery revenues reached $505.30 million, surpassing the $494.32 million average estimate based on three analysts, representing a year-over-year change of +4.7% [4] - Funeral revenues were reported at $587.70 million, slightly below the $590.69 million average estimate based on three analysts, with a year-over-year change of +2.5% [4] - Gross profit from funeral services was $125.10 million, compared to the average estimate of $131.58 million based on three analysts [4] - Gross profit from cemetery services was $180.80 million, exceeding the three-analyst average estimate of $174.01 million [4] Stock Performance - Shares of Service Corp. have returned +0.6% over the past month, while the Zacks S&P 500 composite has changed by +4.3% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

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 ...