SCI Earnings Prediction
The chart below shows how SCI performed 10 days before and after its earnings report, based on data from the past quarters. Typically, SCI sees a +0.32% change in stock price 10 days leading up to the earnings, and a +2.05% change 10 days following the report. On the earnings day itself, the stock moves by +0.15%. This data can give you a slight idea of what to expect for the next quarter's release.
SCI Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
1.01B
1.21%
-1.94%
Gross Margin
24.92%
-1.58%
-0.08%
Operating Margin
20.60%
-6.41%
-2.69%
Net Margin
11.62%
-4.60%
1.66%
EPS
0.81
1.25%
0.00%
No Data Available
SCI Earnings Analysis
Service Corporation International Corporation (SCI.N) Earnings Conference Call
Positive
Earnings Per Share Increase: 1. Increased Adjusted Earnings Per Share: SCI reported adjusted earnings per share of $0.79 for Q3 2024, a slight increase from $0.78 in the same quarter last year, demonstrating stable financial performance.
Cash Flow Increase: 2. Strong Cash Flow Growth: The company achieved adjusted operating cash flow of $269 million, an increase of over $41 million or 18% compared to the prior year, driven by favorable working capital sources.
Capital Investment Surge: 3. Significant Capital Investments: SCI invested a total of $320 million in Q3 2024, the highest quarterly investment rate for the year, which included $123 million in acquisitions and $31 million in real estate transactions.
Q4 2024 Earnings Forecast: 4. Positive Outlook for Q4 2024: The company anticipates adjusted earnings per share for Q4 2024 to be between $1.00 and $1.10, representing an expected growth of 8% to 18% compared to the previous year.
Strong Liquidity Position: 5. Robust Liquidity Position: At the end of Q3 2024, SCI had liquidity of approximately $1.5 billion, consisting of $185 million in cash and $1.3 billion available on its long-term bank credit facility, ensuring financial flexibility for future growth.
Negative
Pre-Need Sales Decline: 1. Decline in Pre-Need Funeral Sales: Pre-need funeral sales production decreased by $22 million, or about 7%, compared to the third quarter of 2023, primarily due to a transition to a new insurance provider.
Cemetery Revenue Stability: 2. Flat Comparable Cemetery Revenue: Comparable cemetery revenue was flat year-over-year, with a $5 million increase in other revenue offset by a $5 million decrease in core revenue, primarily due to a $4 million decline in at-need revenue.
Funeral Gross Profit Decline: 3. Decrease in Core Funeral Gross Profit: Funeral gross profit declined slightly by about $2 million, with the gross profit percentage decreasing by 50 basis points to just over 19%, attributed to inflationary increases in fixed costs outpacing revenue growth.
Rising G&A Expenses: 4. Increased Corporate G&A Expenses: Corporate general and administrative expenses rose to $44 million in the quarter, exceeding the expected range of $38 million to $40 million, primarily due to higher long-term incentive compensation costs.
Increased Cash Tax Payments: 5. Higher Anticipated Cash Tax Payments: Looking ahead, cash taxes are expected to revert to a more normalized level, resulting in an anticipated increase of about $150 million in annual cash tax payments in 2025 compared to 2024.
SCI FAQs
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SCI Earning Call Sentiment
Service Corporation International (SCI) Q3 2024 Earnings Call Transcript
1.0x
00:00
00:00
SCI.N
-0.46%Positive
The earnings call presents mixed signals. Financial performance shows slight EPS growth but is offset by declining funeral volumes and gross profit margins. The Q&A reveals optimism for future growth, especially with new insurance contracts and acquisitions. However, the flat cemetery revenue, increased corporate expenses, and unclear hurricane impact create uncertainties. The shareholder return plan is positive but not significantly impactful. Overall, the sentiment is neutral, with balanced positive and negative factors, leading to a likely neutral stock price movement in the absence of a market cap to further assess volatility.
