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Service Corporation (SCI) Queued for Q2 Earnings: Things to Note

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Service Corporation International (SCI - Free Report) is likely to register top and bottom-line growth, when it reports second-quarter 2021 numbers on Jul 28. The Zacks Consensus Estimate for revenues is pegged at $837 million, suggesting 2.1% growth from the prior-year quarter’s reported figure. In the last reported quarter, this deathcare products and services company witnessed a nearly 34.2% increase in revenues.

The Zacks Consensus Estimate for earnings has remained unchanged over the past 30 days at 66 cents per share, which suggests growth of 13.8% from the figure reported in the prior-year period. The company’s bottom line has outperformed the Zacks Consensus Estimate by 71.7% in the trailing four quarters, on average. In the last reported quarter, Service Corporation posted an earnings surprise of 34.7%.

Key Factors to Note

The company has been seeing increased revenues due to higher funeral services performed as well as increased burials in cemeteries amid the pandemic-led elevated mortality. This was witnessed in the last reported quarter, wherein both Funeral and Cemetery segments benefited from higher core revenues. A rise in location traffic and higher digital and direct mail leads have been working well for Service Corporation. Apart from these, a solid cost structure has been aiding the company’s bottom line.

That said, corporate general and administrative costs have been increasing year over year for a while.

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 currently has a Zacks Rank #3 and an Earnings ESP of 0.00%.

Stocks With Favorable Combinations

Here are some companies you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this season.

Medifast (MED - Free Report) has an Earnings ESP of +6.85% and a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Mondelez International (MDLZ - Free Report) has an Earnings ESP of +2.47% and a Zacks Rank #2.

B&G Foods (BGS - Free Report) has an Earnings ESP of +6.82% and a Zacks Rank #3.