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Service Corporation (SCI) to Report Q4 Earnings: Factors to Note
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Service Corporation International (SCI - Free Report) is likely to register top and bottom-line deteriorations when it reports fourth-quarter 2023 earnings on Feb 12. The Zacks Consensus Estimate for quarterly revenues is pegged at $1 billion, indicating a decline of 0.7% from the prior-year quarter’s reported figure. The consensus mark for 2023 revenues is pegged at $4.1 billion, implying a decline of 1.1% from the previous year’s reported figure.
The Zacks Consensus Estimate for quarterly earnings has remained unchanged in the past 30 days at 89 cents per share. The projection indicates a decline of 3.3% from the figure reported in the year-ago quarter. The consensus mark for 2023 earnings is pegged at $3.44 per share, indicating a decline of 9.5% from the prior-year period’s level.
This deathcare products and services company has a trailing four-quarter earnings surprise of 9%, on average. SCI delivered an earnings surprise of 11.4% in the last reported quarter.
Service Corporation International Price and EPS Surprise
Service Corporation is battling the adverse impact of moderation in consumer discretionary spending, stemming from rising inflation. In addition, a high-interest rate environment remains a concern for the company. Soft revenues in the Funeral business are likely to have hurt SCI’s top-line performance in the to-be-reported quarter. Our model suggests fourth-quarter total funeral revenues of $560.8 million, down 3.3% year over year.
For 2023, Service Corporation expects adjusted earnings per share (EPS) to be in the range of $3.40-$3.60 compared with $3.80 in 2022. For full-year funeral volumes, management expects a low-to-mid single-digit decline, thanks to the pandemic’s pull-forward impact.
That said, management remains committed to pursuing strategic buyouts for both its segments and building new funeral homes to generate greater returns. The continuation of these trends bodes well for the to-be-reported quarter.
What the Zacks Model Unveils
Our proven model doesn’t conclusively predict an earnings beat for Service Corporation this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Service Corporation has an Earnings ESP of 0.00% and a Zacks Rank #3 at present.
Stocks With a Favorable Combination
Here are some companies worth considering, as our model shows that these have the right combination of elements to beat on earnings this reporting cycle.
The Zacks Consensus Estimate for revenues is pegged at $926.9 million, indicating an almost 7% decline from the prior-year quarter’s reported actuals. The consensus mark for earnings is pegged at 71 cents per share, implying a 27.6% decline from the year-ago quarter’s level. THS has a trailing four-quarter average earnings surprise of 26.5%.
Inter Parfums (IPAR - Free Report) currently has an Earnings ESP of +11.27% and a Zacks Rank of 2. The company is likely to register a top-line increase when it reports fourth-quarter 2023 numbers. The Zacks Consensus Estimate for Inter Parfums’ quarterly revenues is pegged at $329.1 million, indicating a rise of 5.9% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for earnings is pinned at 35 cents per share, indicating a decline of 50.7% from the year-ago quarter’s level. IPAR has a trailing four-quarter average earnings surprise of 45.7%.
Coca-Cola (KO - Free Report) has an Earnings ESP of +0.76% and a Zacks Rank of 3 at present. KO is likely to register top and bottom-line growth when it reports fourth-quarter 2023 numbers. The Zacks Consensus Estimate for its quarterly revenues is pegged at $10.6 billion, indicating growth of 5% from that reported in the prior-year quarter.
The Zacks Consensus Estimate for Coca-Cola’s quarterly earnings has remained unchanged in the past 30 days at 48 cents per share, indicating 6.7% growth from the year-ago quarter’s reported number. KO has a trailing four-quarter average earnings surprise of 5.1%.
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Service Corporation (SCI) to Report Q4 Earnings: Factors to Note
Service Corporation International (SCI - Free Report) is likely to register top and bottom-line deteriorations when it reports fourth-quarter 2023 earnings on Feb 12. The Zacks Consensus Estimate for quarterly revenues is pegged at $1 billion, indicating a decline of 0.7% from the prior-year quarter’s reported figure. The consensus mark for 2023 revenues is pegged at $4.1 billion, implying a decline of 1.1% from the previous year’s reported figure.
The Zacks Consensus Estimate for quarterly earnings has remained unchanged in the past 30 days at 89 cents per share. The projection indicates a decline of 3.3% from the figure reported in the year-ago quarter. The consensus mark for 2023 earnings is pegged at $3.44 per share, indicating a decline of 9.5% from the prior-year period’s level.
This deathcare products and services company has a trailing four-quarter earnings surprise of 9%, on average. SCI delivered an earnings surprise of 11.4% in the last reported quarter.
Service Corporation International Price and EPS Surprise
Service Corporation International price-eps-surprise | Service Corporation International Quote
Things to Note
Service Corporation is battling the adverse impact of moderation in consumer discretionary spending, stemming from rising inflation. In addition, a high-interest rate environment remains a concern for the company. Soft revenues in the Funeral business are likely to have hurt SCI’s top-line performance in the to-be-reported quarter. Our model suggests fourth-quarter total funeral revenues of $560.8 million, down 3.3% year over year.
For 2023, Service Corporation expects adjusted earnings per share (EPS) to be in the range of $3.40-$3.60 compared with $3.80 in 2022. For full-year funeral volumes, management expects a low-to-mid single-digit decline, thanks to the pandemic’s pull-forward impact.
That said, management remains committed to pursuing strategic buyouts for both its segments and building new funeral homes to generate greater returns. The continuation of these trends bodes well for the to-be-reported quarter.
What the Zacks Model Unveils
Our proven model doesn’t conclusively predict an earnings beat for Service Corporation this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Service Corporation has an Earnings ESP of 0.00% and a Zacks Rank #3 at present.
Stocks With a Favorable Combination
Here are some companies worth considering, as our model shows that these have the right combination of elements to beat on earnings this reporting cycle.
TreeHouse Foods (THS - Free Report) currently has an Earnings ESP of +7.04% and a Zacks Rank #2. THS is likely to record top and bottom-line declines when it reports fourth-quarter 2023 results. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for revenues is pegged at $926.9 million, indicating an almost 7% decline from the prior-year quarter’s reported actuals. The consensus mark for earnings is pegged at 71 cents per share, implying a 27.6% decline from the year-ago quarter’s level. THS has a trailing four-quarter average earnings surprise of 26.5%.
Inter Parfums (IPAR - Free Report) currently has an Earnings ESP of +11.27% and a Zacks Rank of 2. The company is likely to register a top-line increase when it reports fourth-quarter 2023 numbers. The Zacks Consensus Estimate for Inter Parfums’ quarterly revenues is pegged at $329.1 million, indicating a rise of 5.9% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for earnings is pinned at 35 cents per share, indicating a decline of 50.7% from the year-ago quarter’s level. IPAR has a trailing four-quarter average earnings surprise of 45.7%.
Coca-Cola (KO - Free Report) has an Earnings ESP of +0.76% and a Zacks Rank of 3 at present. KO is likely to register top and bottom-line growth when it reports fourth-quarter 2023 numbers. The Zacks Consensus Estimate for its quarterly revenues is pegged at $10.6 billion, indicating growth of 5% from that reported in the prior-year quarter.
The Zacks Consensus Estimate for Coca-Cola’s quarterly earnings has remained unchanged in the past 30 days at 48 cents per share, indicating 6.7% growth from the year-ago quarter’s reported number. KO has a trailing four-quarter average earnings surprise of 5.1%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.