Looking more specifically, Carriage Services belongs to the Funeral Services industry, which includes 3 individual stocks and currently sits at #36 in the Zacks Industry Rank. Stocks in this group have gained about 1% so far this year, so CSV is performing better this group in terms of year-to-date returns. Our latest available data shows that CSV has returned about 21.2% since the start of the calendar year. At the same time, Consumer Staples stocks have gained an average of 5.1%. This shows that Carriage ...

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]

Carriage Services (CSV) Q2 2025 Earnings Call August 07, 2025 09:00 AM ET Speaker0Good day, and thank you for standing by. Welcome to the Carriage Services Second Quarter twenty twenty five Earnings Conference Call. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Steve Metzger, President. Please go ahead, sir.Speaker1Good morning, everyone. Thank you for joining us to discuss our second quarter results. In addition to myself, o ...

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]

Financial Performance - For the quarter ended June 2025, Service Corp. reported revenue of $1.07 billion, reflecting a 3% increase year-over-year [1] - Earnings per share (EPS) for the quarter was $0.88, up from $0.79 in the same quarter last year [1] - The reported revenue exceeded the Zacks Consensus Estimate of $1.05 billion by 1.48%, while the EPS surpassed the consensus estimate of $0.84 by 4.76% [1] Key Metrics - Total comparable funeral average revenue per service was $5,807, slightly above the two-analyst average estimate of $5,762.86 [4] - The number of funeral services performed was 87,014, exceeding the two-analyst average estimate of 86,839 [4] - Cemetery revenue reached $474.1 million, surpassing the estimated $471.26 million by three analysts, representing a 1.3% increase compared to the year-ago quarter [4] - Funeral revenue was $591.4 million, exceeding the estimated $578.6 million by three analysts, marking a 4.5% increase year-over-year [4] - Gross profit from cemetery services was $155.5 million, above the estimated $154.19 million, while gross profit from funeral services was $116 million, exceeding the estimate of $106.85 million [4] Stock Performance - Shares of Service Corp. have returned -7.4% over the past month, contrasting with the Zacks S&P 500 composite's +3.4% change [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 $0.88 per share, exceeding the Zacks Consensus Estimate of $0.84 per share, and showing an increase from $0.79 per share a year ago, representing an earnings surprise of +4.76% [1][2] Financial Performance - The company posted revenues of $1.07 billion for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 1.48%, compared to $1.03 billion in the same quarter last year [2] - Over the last four quarters, Service Corp. has exceeded consensus EPS estimates three times and topped consensus revenue estimates four times [2] Stock Performance and Outlook - Service Corp. shares have declined approximately 4.7% since the beginning of the year, while the S&P 500 has gained 8.3% [3] - The company's current consensus EPS estimate for the upcoming quarter is $0.83 on revenues of $1.04 billion, and for the current fiscal year, it is $3.77 on revenues of $4.28 billion [7] Industry Context - The Funeral Services industry, to which Service Corp. belongs, is currently ranked in the top 37% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact Service Corp.'s stock performance [5][6]

Group 1 - Carriage Services, Inc. plans to release its second quarter 2025 results on August 6, 2025, after market close [1] - A conference call to discuss the earnings will be held on August 7, 2025, at 8:00 a.m. Central Time [2] - The company operates 159 funeral homes across 25 states and 28 cemeteries in 10 states as of June 30, 2025 [3] Group 2 - The conference call will be accessible via phone or live webcast [2] - An audio archive of the call will be available on the company's website after the event [3] - Carriage Services is recognized as a leading provider of funeral and cemetery services and merchandise in the United States [3]