Service Corp International: Analysts Raise Targets Post Earnings
Service Corp International Sees Positive Growth Signs
Service Corp International (NYSE: SCI) recently announced their third-quarter earnings, reporting results that exceeded expectations and sparked optimism among analysts. The company revealed adjusted earnings per share (EPS) of 79 cents, surpassing the average analyst estimate of 77 cents.
Overview of Earnings Report
In addition to a strong EPS beat, Service Corp International reported quarterly revenues of $1.014 billion. While this figure fell slightly short of the analyst consensus of $1.016 billion, the overall performance was still noteworthy.
Leadership Insights
Tom Ryan, the Company’s Chairman and CEO, expressed his satisfaction with the results. He highlighted the adjusted EPS of $0.79, along with net cash from operations excluding special items amounting to $269 million. Ryan noted the significant benefits from a new marketing agreement with their preneed insurance provider, which has positively influenced funeral revenue. He remarked, “Both funeral and cemetery gross profits have remained stable compared to last year, showcasing our commitment to managing fixed costs effectively.”
Future Projections
Looking ahead, Service Corp International is projecting an adjusted loss of $1.00 to $1.10 per share for the fourth quarter, which contrasts sharply with the analyst estimate of a profit at 77 cents.
Market Response and Analyst Adjustments
In reaction to the recently announced earnings, Service Corp International shares saw a modest increase of 0.2%, settling at $81.79 on the following trading day. This positive market sentiment reflects analysts' renewed confidence in the company.
Analysts Updating Price Targets
Following the earnings report, several analysts adjusted their price targets for Service Corp International:
- Raymond James analyst John Ransom has maintained an Outperform rating, raising the price target from $80 to an impressive $85.
- Truist Securities analyst Tobey Sommer also retained a Buy rating and increased the price target from $84 to $92, emphasizing strong future growth potential.
Conclusion
As Service Corp International navigates the complexities of the market with innovative strategies and sound management practices, the outlook remains positive. The company’s recent earnings beat strengthens its position in the industry and encourages investor confidence as they prepare for the final quarter of the fiscal year.
Frequently Asked Questions
What were the adjusted EPS results for Service Corp International?
Service Corp International reported an adjusted EPS of 79 cents for the third quarter, surpassing the analyst estimate of 77 cents.
How did the company's revenues perform this quarter?
The company reported quarterly revenues of $1.014 billion, slightly missing the expected $1.016 billion but indicating stable business operations.
What is the company's forecast for the fourth quarter?
Service Corp International anticipates an adjusted loss of $1.00 to $1.10 per share for the fourth quarter, contrasting with the profit expectations of analysts.
What have analysts said about Service Corp International after the earnings report?
Analysts have responded positively, with Raymond James raising their price target to $85 and Truist Securities increasing theirs to $92.
What factors contributed to the decrease in gross profits?
The decrease in gross profits was attributed to the company’s focus on managing fixed costs and stable revenues from funeral and cemetery services.
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