Group 1 - Carriage Services, Inc. plans to release its 2025 annual results on February 25, 2026, after market close [1] - A conference call to discuss the annual results is scheduled for February 26, 2026, at 8:00 a.m. Central Time, available via phone and webcast [2] - Carriage Services operates 155 funeral homes across 24 states and 28 cemeteries in 9 states as of December 31, 2025, focusing on delivering premier experiences through innovation and elevated service [3]

Core Insights - Service Corporation International (SCI) reported strong fourth-quarter 2025 results, with both revenue and earnings increasing year over year, driven by growth in funeral and cemetery segments, higher gross profit, and disciplined capital management [1][9] Financial Performance - Adjusted earnings per share (EPS) for Q4 2025 were $1.14, an 8% increase from $1.06 in the same quarter last year, matching the Zacks Consensus Estimate [2] - Total revenues reached $1,111.5 million, a 2% increase from $1,093.0 million year over year, although slightly below the Zacks Consensus Estimate of $1,119 million [2] - Gross profit rose by 1.9% to $311.7 million, maintaining a gross margin of 28% [2] Segment Analysis - **Funeral Segment**: - Total funeral revenues increased to $600.6 million from $587.7 million in Q4 2024, with gross profit rising to $126.2 million [4] - Average revenue per service grew by 3.3% to $5,880 [4] - Comparable funeral revenues rose 0.5% to $580.4 million, with comparable preneed funeral sales production up 11% to $294.1 million [5] - **Cemetery Segment**: - Total cemetery revenues increased to $510.9 million from $505.3 million in Q4 2024, with gross profit up 2.6% to $185.5 million [6] - Comparable cemetery revenues rose 0.9% to $508.3 million, driven by higher other revenues [7] Operating Income and Expenses - Operating income increased by 5.1% to $275.6 million from $262.2 million in the prior-year quarter [3] - Corporate general and administrative expenses were $33.7 million, significantly higher than $15.0 million in the prior-year period, primarily due to a reduction in legal reserves in the previous year [3] Financial Health and Outlook - At the end of 2025, SCI had $243.6 million in cash and cash equivalents, up from $218.8 million at the end of 2024, with long-term debt totaling $5.1 billion [10] - For 2026, SCI expects diluted EPS in the range of $4.05-$4.35, indicating growth within its long-term target range of 8-12% [13] - Projected net cash provided by operating activities for 2026 is between $1,005 million and $1,065 million after cash taxes [14]

Core Insights - Gold prices remain steady above $5,000 per ounce amid geopolitical and economic risks, with predictions of potential increases to $6,000 due to a weaker dollar [1] - Consumer staples are highlighted as a defensive sector that can protect capital during market volatility, offering steady dividend income and reliable revenue [1] Consumer Staples Sector - Consumer staples are considered a 'safe' sector as they sell essential goods, leading to predictable revenue streams [1] - These companies typically have steady dividend income, reliable earnings, and the ability to pass on rising costs to consumers [1] - Low beta characteristics of consumer staples stocks make them less volatile compared to the broader market, appealing to institutional investors during turbulent times [1] Featured Consumer Staples Stocks 1. Waste Management - Waste Management Inc. has a near-monopoly in many locations due to its extensive landfill network, making it a strong dividend payer with a 52% dividend payout rate and a 22-year history of annual increases [1] - The stock is experiencing a bullish trend, having surpassed the 200-day simple moving average for the first time since last September [1] 2. British American Tobacco - British American Tobacco plc has shifted towards smokeless products, maintaining a dividend yield of over 5% with a 63% dividend payout ratio [1] - The stock has returned nearly 60% in the last 12 months and shows potential for further gains following a period of consolidation [1] 3. Service Corporation International - Service Corporation International Inc. is the largest provider of funeral and cemetery services in North America, benefiting from an aging population [1] - The company has a dividend yield of 1.68% with a 36.7% payout ratio, and it has raised its dividend for 15 consecutive years [1] - The company raised its 2025 cash flow guidance to between $915 million and $950 million, supporting future payout increases [2]

Core Insights - Service Corporation International (SCI) demonstrated stable performance in Q3 2025, supported by a steady operating model, effective pricing strategies, cost control, and a balanced business mix [1] Funeral Segment Performance - The funeral segment provided a consistent earnings base, with comparable core funeral services declining by 3.5% year over year, but offset by a 3% increase in the comparable core funeral average [2] - Non-funeral home average revenue per service increased by 13.4%, benefiting from pricing actions and higher-value preneed contracts maturing from the backlog, which helped mitigate the impact of lower service volumes on overall revenues and gross profit [2] Cemetery Operations - Cemetery operations contributed significantly to stability, with comparable cemetery revenues rising nearly 7%, driven by a 9.6% increase in cemetery preneed sales production [3] - Higher property sales and growth in recognized merchandise and services revenue led to a $18 million increase in cemetery gross profit, with operating margins expanding to 34% [3] Cost Management - Cost discipline was a key aspect of SCI's stability, with corporate general and administrative expenses declining year over year and fixed costs managed below inflation, increasing approximately 1.4% during the quarter [4] - These cost management efforts helped preserve operating income despite elevated selling and labor costs [4] Capital Allocation - SCI invested $140 million in Q3 2025 across maintenance capital, cemetery development, growth projects, and acquisitions, with $86 million allocated to maintaining and improving existing locations [5] - This balanced investment approach aims to sustain service quality, operational efficiency, and long-term consistency [5] Stock Performance - SCI's disciplined execution and diversified revenue streams contributed to a 6.4% increase in shares over the past six months, outperforming the industry's growth of 5.9% [6]

Core Insights - Carriage Services, Inc. announced executive leadership promotions and appointments to support its growth strategy and 2030 Vision [1][2][5] Leadership Changes - Steve Metzger has been promoted to President and Chief Operating Officer, overseeing Operations, Sales, Marketing, and M&A [7] - John Enwright, Chief Financial Officer, will now also oversee Information Technology and Supply Chain, aligning financial discipline with long-term value creation [4] - Rene Negrete joins as Vice President of Operations, bringing over 20 years of experience in the funeral and cemetery sector [7] - Sam A. Mazzu, III has been promoted to Vice President, General Counsel and Secretary, focusing on governance and risk stewardship [7] - Christine Ngo has been promoted to Vice President of Human Resources, enhancing leadership in people and culture development [7] - Alfred White has been promoted to Vice President of Marketing, aiming to strengthen the brand and community connections [7] Strategic Objectives - The new leadership structure supports Carriage's three strategic objectives: Purposeful Growth, Relentless Improvement, and Empowered Partnership [5] - The company aims to scale responsibly, invest in its workforce, and deliver meaningful experiences to families and communities [5] Company Overview - Carriage Services is a leading provider of funeral and cemetery services in the U.S., operating 155 funeral homes in 24 states and 28 cemeteries in 9 states as of December 31, 2025 [6]

Core Insights - The company has experienced better-than-expected volume performance in its funeral and cemetery segments, with volumes normalizing despite initial expectations of a decline [1] - The third quarter showed a 3% decline in volume, which aligned with the company's anticipated seasonal trends, indicating stability in volume fluctuations [1] - The company anticipates continued foundational strength moving forward, suggesting a positive outlook for future performance [2]

Core Viewpoint - Carriage Services (CSV) has been upgraded to a Zacks Rank 1 (Strong Buy) due to an upward trend in earnings estimates, indicating a positive earnings outlook that could lead to increased stock prices [1][3]. Earnings Estimates and Stock Performance - The Zacks rating system is based on changes in a company's earnings picture, which is a significant factor influencing stock prices [2][4]. - Rising earnings estimates for Carriage Services suggest an improvement in the company's underlying business, likely resulting in higher stock prices as investors respond positively [5][8]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [7]. - Only the top 5% of Zacks-covered stocks receive a "Strong Buy" rating, indicating superior earnings estimate revisions and potential for market-beating returns [9][10]. Recent Performance of Carriage Services - For the fiscal year ending December 2025, Carriage Services is expected to earn $3.27 per share, with a 3.3% increase in the Zacks Consensus Estimate over the past three months [8].

Core Viewpoint - Carriage Services (CSV) has received an upgrade to a Zacks Rank 2 (Buy), indicating a positive outlook driven by rising earnings estimates, which significantly influence stock prices [1][3]. Earnings Estimates and Stock Performance - The Zacks rating system emphasizes the importance of earnings estimate revisions, which are strongly correlated with near-term stock price movements [4][6]. - For the fiscal year ending December 2025, Carriage Services is projected to earn $3.21 per share, reflecting a 21.1% increase from the previous year, with a 13.8% rise in the Zacks Consensus Estimate over the past three months [8]. Institutional Investor Influence - Institutional investors utilize earnings estimates to determine the fair value of stocks, leading to buying or selling actions that affect stock prices [4][5]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with a strong historical performance, particularly for Zacks Rank 1 stocks, which have averaged a +25% annual return since 1988 [7]. - Carriage Services' upgrade to Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, suggesting potential for market-beating returns in the near term [10].

Group 1 - Service Corporation International (SCI) operates in the funeral and cemetery services sector in North America, holding approximately 17% of the total market share [1] - The company is well positioned to benefit from the recovery of the funeral business following the global pandemic [1]

Core Viewpoint - Carriage Services (CSV) has been upgraded to a Zacks Rank 1 (Strong Buy), indicating a positive outlook based on rising earnings estimates, which significantly influence stock prices [1][3]. Earnings Estimates and Stock Performance - The Zacks rating system emphasizes the correlation between changes in earnings estimates and stock price movements, particularly influenced by institutional investors [4]. - For the fiscal year ending December 2025, Carriage Services is expected to earn $3.20 per share, reflecting a 20.8% increase from the previous year [8]. - Over the past three months, the Zacks Consensus Estimate for Carriage Services has risen by 13.2% [8]. Zacks Rating System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [7]. - The upgrade of Carriage Services to Zacks Rank 1 places it in the top 5% of Zacks-covered stocks, suggesting potential for near-term price increases [10].