SCI Q3 Earnings Match Estimates, Funeral Revenues Increase Y/Y

Core Insights - Service Corporation International (SCI) reported third-quarter 2024 results with both top and bottom lines showing year-over-year growth [1][4] - The company is optimistic about funeral revenues due to a new marketing partnership with a preferred preneed insurance provider launched in Q3 [1][3] - Total revenues reached $1,014 million, up from $1,001.9 million in the same quarter last year, exceeding the Zacks Consensus Estimate of $1,012 million [5] Financial Performance - Adjusted earnings per share (EPS) were 79 cents, consistent with the Zacks Consensus Estimate and an increase from 78 cents in the prior year [4] - Gross profit was $252.3 million, slightly down from $253.7 million year-over-year, with corporate general and administrative costs rising to $43.7 million from $33.2 million [5][6] - Operating income decreased to $212.4 million from $223 million in the previous year [6] Segment Performance - Consolidated funeral revenues increased to $566 million from $554.8 million, with a 1.3% rise in total comparable funeral revenues [7] - Core funeral revenues grew by 1%, supported by a 2.1% increase in core average revenues, despite a 1.1% decline in core funeral services performed [8] - Consolidated cemetery revenues were $448 million, slightly up from $447.1 million, with total comparable cemetery revenues remaining flat year-over-year [10] Strategic Initiatives - The company invested $123 million to acquire 10 funeral homes and two cemeteries, along with an additional $31 million for real estate transactions [2] - For 2025, SCI aims to return to its long-term growth target of 8-12%, focusing on revenue growth and strategic capital investments [3] Future Outlook - For Q4 2024, management anticipates adjusted EPS of $1-$1.10, indicating an 8-18% growth from the previous year's 93 cents [13] - Full-year 2024 adjusted EPS is expected to be in the range of $3.47-$3.57, revised from the previous guidance [15] - The company raised its full-year 2024 adjusted operating cash flow guidance midpoint from $930 million to $950 million, with total maintenance capital expenditures expected to be around $325 million [16]