Group 1 - Celsius Holdings Inc. is currently ranked 16 in the Zacks Sector Rank among 184 companies in the Consumer Staples group [2] - The Zacks Rank for Celsius Holdings Inc. is 1 (Strong Buy), indicating strong analyst sentiment and an improving earnings outlook with a 32.8% increase in the full-year earnings estimate over the past quarter [3] - Year-to-date, Celsius Holdings Inc. has increased by 118.3%, significantly outperforming the average gain of 0.6% in the Consumer Staples group [4] Group 2 - Celsius Holdings Inc. is part of the Food - Miscellaneous industry, which consists of 42 stocks and currently ranks 202 in the Zacks Industry Rank, with this industry experiencing a decline of 6.6% year-to-date [5] - Another outperforming stock in the Consumer Staples sector is Carriage Services, which has gained 11.3% year-to-date and has a Zacks Rank of 2 (Buy) [4][6] - The Funeral Services industry, to which Carriage Services belongs, is ranked 8 and has seen a year-to-date increase of 2.7% [6]

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 (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]

Financial Data and Key Metrics Changes - Total revenue for Q2 2025 was $102.1 million, essentially flat compared to the same quarter last year [5] - GAAP net income for the quarter was $11.7 million, up 85.7% from $6.3 million in the same quarter last year [8] - GAAP diluted EPS increased to $0.74 compared to $0.40, an 85% increase year-over-year [8] - Adjusted consolidated EBITDA for Q2 was $32.3 million, down 1% from the prior year [9] - Adjusted diluted EPS for Q2 was $0.74, a 17.5% increase compared to $0.63 in the prior year quarter [10] Business Line Data and Key Metrics Changes - Total funeral operating revenue grew 1.4% to $59.6 million, driven by a 0.5% increase in calls [6] - Cemetery operating revenue was $33.5 million, a slight decrease of 0.6% from the same period last year [7] - Financial revenue rose 18.8% to $8.2 million, primarily due to a 96.2% increase in preneed funeral commission income [7] Market Data and Key Metrics Changes - Year-to-date cemetery revenue is up 2.2%, below the year-over-year growth range of 10% to 20% [7] - The company anticipates a return to a normalized volume growth rate of 1% to 2% in 2026 [6] Company Strategy and Development Direction - The company is under contract to acquire new businesses, expected to close in Q3 2025, which will add significant revenue [11] - The focus is on high-quality acquisitions to add shareholder value, with a commitment to prudent capital management [12] - The company is rolling out a casket core line and enhancing service delivery through a "passion for service" program [13][14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strategy and execution, noting a return to growth mode after disciplined capital management [11] - The company is monitoring broader economic trends and reaffirming its commitment to capital stewardship while pursuing strategic acquisitions [12] - Management expects a strong second half of the year, with updated guidance reflecting the impact of acquisitions and divestitures [22] Other Important Information - Cash from operating activities for the quarter totaled $8.1 million, an increase of $2.2 million from the same period last year [19] - The leverage ratio improved to 4.2 times compared to 4.6 times at the end of 2024 [20] - Overhead spending was reduced to 12.2% of revenue, down from 20% in the prior year quarter [20] Q&A Session Summary Question: Can you provide details on the M&A transactions? - Management confirmed that multiple transactions are involved, each with multiple businesses [24] Question: What is the pricing outlook for the acquisitions? - Pricing is in line with the company's valuation philosophy, generally in high single digits on multiples for premium businesses [25] Question: Can you break down the revenue guidance changes? - The increase in revenue guidance is attributed to acquisitions, divestitures, and organic business performance [52] Question: What are the expectations for cemetery growth in the back half of the year? - Management expects to return to over 10% growth, contingent on resolving inventory delays [55] Question: What is the outlook for future M&A activity? - The pipeline for acquisitions is strong, with ongoing conversations with owners of premium businesses [58]

Group 1: Earnings Performance - Carriage Services reported quarterly earnings of $0.74 per share, exceeding the Zacks Consensus Estimate of $0.72 per share, and up from $0.63 per share a year ago [1] - The earnings surprise for this quarter was +2.78%, following a previous quarter where the company had a surprise of +20% [2] - Over the last four quarters, Carriage Services has consistently surpassed consensus EPS estimates [2] Group 2: Revenue Performance - The company posted revenues of $102.15 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 1.67%, but slightly down from $102.32 million year-over-year [3] - Carriage Services has also topped consensus revenue estimates in four consecutive quarters [3] Group 3: Stock Performance and Outlook - Carriage Services shares have increased approximately 14.2% since the beginning of the year, outperforming the S&P 500's gain of 7.1% [4] - The company's earnings outlook is crucial for investors, with current consensus EPS estimates at $0.73 for the coming quarter and $3.16 for the current fiscal year [5][8] - The Zacks Rank for Carriage Services is currently 3 (Hold), indicating expected performance in line with the market in the near future [7] Group 4: Industry Context - The Funeral Services industry, to which Carriage Services belongs, is currently ranked in the top 16% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [9]

Core Viewpoint - Carriage Services, Inc. reported strong financial performance for the second quarter of 2025, with significant growth in net income and earnings per share, despite challenges from divestitures. The company is poised to return to a growth trajectory through strategic acquisitions [3][10]. Financial Highlights - GAAP net income increased by $5.5 million, or 85.7%, compared to the same quarter last year, reaching $11.7 million [4][6]. - GAAP diluted EPS was $0.74, reflecting an 85.0% increase from $0.40 in the prior year quarter [4][6]. - Total revenue for the second quarter was $102.1 million, slightly down from $102.3 million in the previous year, but flat due to organic growth strategies [4][10]. - Operating income rose to $24.0 million, up from $18.4 million in the prior year, with an operating income margin of 23.5% [4][6]. - Cash provided by operating activities was $8.1 million, compared to $2.2 million in the prior year [4][6]. Operational Metrics - Total funeral consolidated revenue increased by $1.7 million, or 2.6%, driven by a 1.4% increase in average revenue per funeral contract [6][10]. - The company sold 4,016 preneed interment rights in the quarter, with an average price of $5,871 per right [4][7]. - The leverage ratio improved to 4.2x from 4.6x year-over-year, as the company paid down $7.1 million of debt during the quarter [6][10]. Revised Outlook - The company updated its full-year guidance to reflect current performance trends and the anticipated impact of acquisitions and divestitures [3][10]. - Total revenue for the full year is projected to be between $410 million and $420 million, with adjusted consolidated EBITDA expected to be between $129 million and $134 million [11][10].

Core Viewpoint - Matthews International (MATW) reported quarterly earnings of $0.28 per share, missing the Zacks Consensus Estimate of $0.33 per share, and down from $0.56 per share a year ago [1][2] Financial Performance - The earnings surprise for the quarter was -15.15%, with the company previously expected to post earnings of $0.36 per share but actually reporting $0.34 per share, resulting in a -5.56% surprise [2] - Revenues for the quarter ended June 2025 were $349.38 million, exceeding the Zacks Consensus Estimate by 7.73%, but down from $427.83 million year-over-year [3] - Over the last four quarters, the company has surpassed consensus revenue estimates two times [3] Stock Performance - Matthews International shares have declined approximately 16.3% since the beginning of the year, contrasting with the S&P 500's gain of 7.6% [4] - The current Zacks Rank for the stock is 3 (Hold), indicating expected performance in line with the market in the near future [7] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $0.42 on revenues of $290 million, and for the current fiscal year, it is $1.22 on revenues of $1.44 billion [8] - The outlook for the Funeral Services industry, where Matthews operates, is currently in the top 16% of over 250 Zacks industries, suggesting a favorable environment for performance [9] Competitor Insights - Carriage Services (CSV), another company in the Funeral Services industry, is expected to report quarterly earnings of $0.72 per share, reflecting a year-over-year increase of +14.3% [10] - Carriage Services' anticipated revenues are $100.47 million, which is a decrease of 1.8% from the previous year [11]

Financial Data and Key Metrics Changes - The company generated adjusted earnings per share of $0.88, an increase of over 11% compared to $0.79 in the prior year period [5] - Total comparable funeral revenue increased by over $15 million, or about 3%, compared to the prior year quarter [5] - Funeral gross profit increased by about $15 million, with the gross profit percentage rising by 20 basis points [6][10] Business Line Data and Key Metrics Changes - Comparable core funeral revenues increased by $8 million, or about 2%, driven by a 3.3% growth in core average revenue per service [6] - Comparable cemetery revenue increased by $2 million, or almost 1%, with a core revenue increase of about $1 million [8][9] - Preneed funeral sales production decreased by $29 million, or about 9%, primarily due to the transition to a new preneed insurance provider [7] Market Data and Key Metrics Changes - The company anticipates comparable core preneed sales production growth in 2025, despite a decrease in the current quarter [7] - The transition to the new preneed insurance provider has impacted sales production, but the company expects growth in the future [7][8] Company Strategy and Development Direction - The company confirmed its normalized earnings per share guidance range of $3.7 to $4 for 2025, raising its cash flow outlook due to stronger working capital trends [10] - The company plans to invest $100 million in capital expenditures, focusing on existing locations, cemetery development, and new builds [17][18] - The acquisition pipeline remains optimistic, with an anticipated investment target of $75 million to $125 million for 2025 [19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving revenue and margin growth for both funeral and cemetery segments in the remainder of 2025 [10] - The company expects preneed cemetery and funeral sales production to grow at low to mid-single-digit percentages over the prior year's six-month period [11] - Management acknowledged the challenges posed by higher effective tax rates but remains optimistic about cash flow and operational performance [21] Other Important Information - The company returned $239 million of capital to shareholders in the second quarter through dividends and share repurchases [19] - The company ended the quarter with liquidity of about $1.4 billion, consisting of approximately $250 million in cash and $1.2 billion available on its long-term bank credit facility [23] Q&A Session Summary Question: What caused the dip in the recognition rate in the current quarter? - Management attributed the dip to normal volatility in cemetery production and expects the recognition rate to return to normal in the second half of the year [26][27] Question: What are the expectations for the cremation rate moving forward? - Management indicated that the pace of increase in the cremation rate may moderate, adjusting expectations to a range of 50 to 80 basis points [30][32] Question: How will the changes in cash taxes affect long-term cash flow? - Management expects a $30 million benefit from lower cash taxes this year, with ongoing benefits from capital improvements [34][39] Question: What are the expectations for funeral volumes in the back half of the year? - Management noted that the third quarter may present tougher comparisons for funeral volumes, while cemetery revenues are expected to be strong [42] Question: How is the company performing in preneed sales production? - Management expects low to mid-single-digit growth in preneed sales production for both funeral and cemetery segments in the second half of the year [58][60] Question: What is the outlook for capital deployment given the increase in cash flows? - Management indicated that capital will be deployed to the highest return opportunities, including M&A and new construction projects [66][70]