Service Corporation beats earnings estimates by $0.17

Trending News 🌥️

Service Corporation ($NYSE:SCI) International , the largest provider of funeral and cemetery services in North America, reported third-quarter earnings that beat analyst expectations. Non-GAAP EPS for the quarter was $0.68, beating estimates by $0.17. The company attributed the strong results to cost-cutting measures and higher demand for its services. “We are pleased with our third-quarter results, which demonstrate the continued progress we are making to generate shareholder value,” said CEO Tom Ryan in a statement. Both of these figures are slightly ahead of analyst expectations. SCI has been struggling in recent years as the death rate in the US has declined.

However, the company has been working to cut costs and grow its business in other ways, and these efforts seem to be paying off.

Earnings

Service Corporation announced their earnings for the second quarter of their 2022 fiscal year and beat expectations by $0.17. Their total revenue was $4180.9M, and they had a net income of $768.5M. Compared to the previous year, this is a 0.9% increase in total revenue, but a 4.3% decrease in net income. However, over the last three years, SC’s total revenue has increased from $3511.5M to $4180.9M.

Share Price

On Tuesday, Service Corporation stock opened at $61.2 and closed at $61.2, up by 0.9% from prior closing price of 60.6. This was after the company announced it had beaten earnings estimates by $0.17. Service Corporation is a leading provider of deathcare products and services in North America. It has a diversified product and service portfolio that includes funeral homes, cremation centers, cemeteries, and related businesses. The company has a strong presence in the United States and Canada, and is the largest provider of deathcare products and services in North America.

Service Corporation has a diversified product and service portfolio that includes funeral homes, cremation centers, cemeteries, and related businesses. Service Corporation’s strong performance was driven by growth in its funeral and cemetery businesses. This was driven by cost savings initiatives and higher revenue.

VI Analysis

The company’s fundamentals reflect its long-term potential, with a strong cash position and low debt levels. Based on the VI Star Chart, SCI has a high health score of 7/10, indicating that it is capable of paying off its debt and funding future operations. The company is also strong in dividend growth and medium in profitability.

However, it is weak in asset growth. SCI is classified as a “gorilla” company, meaning that it has achieved stable and high revenue or earnings growth due to its strong competitive advantage. This makes it an attractive investment for long-term investors seeking companies with strong fundamentals and growth potential.

VI Peers

Service Corp International is the largest provider of death care services and products in North America. The company operates more than 2,000 funeral homes and crematories in the United States and Canada. LE Lavoir Ltd is a provider of funeral and cremation services in Japan. HEIAN CEREMONY SERVICE Co Ltd is a leading provider of funeral services in China.

– Park Lawn Corp ($TSX:PLC)

Park Lawn Corporation is a provider of death care products and services in North America. The Company owns and operates cemeteries, funeral homes, crematoria, burial vaults, urn gardens, memorialization products and services, and cemetery property. Park Lawn’s products and services include interment rights, such as graves, crypts or niches in cemeteries, and funeral and cremation services.

– LE Lavoir Ltd ($BSE:539814)

In 2022, the market capitalization of Lavoir Ltd was 108.86 million, with a return on equity of 1.66%. The company provides laundry and dry-cleaning services.

– HEIAN CEREMONY SERVICE Co Ltd ($TSE:2344)

The Heian Ceremony Service Co Ltd has a market capitalization of 9.16 billion as of 2022. The company has a return on equity of 4.27%. Heian Ceremony Service Co Ltd is a company that provides services for ceremonies.

Summary

Investors who are looking for a potential outperformer in the funeral services industry may want to keep an eye on Service Corporation International . The company has a history of beating earnings estimates and its share price has reflected that, rising nearly 30% over the past year. The company attributed its results to “continued operational improvements” and said that it is well-positioned for the future.

Investors who believe that Service Corporation can continue to outperform may want to consider buying shares. And with a dividend yield of 2%, it also offers some income potential.