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Things to Consider Before Service Corporation (SCI) Q4 Earnings

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Service Corporation International (SCI - Free Report) is likely to witness growth in the top line when it reports fourth-quarter 2021 numbers on Feb 14. The Zacks Consensus Estimate for revenues is pegged at $1,012 million, suggesting an increase of 4.3% from the prior-year quarter’s reported figure. The consensus mark for 2021 revenues is pegged at $4,112 million, indicating growth of 17.1% from the year-ago period’s reported figure.

Service Corporation’s bottom line is likely to decline year over year in the fourth quarter. Although the Zacks Consensus Estimate for quarterly earnings has moved up 11.1% to $1.00 per share in the past 30 days, it projects an11.5% fall from the year-ago quarter’s reported figure. The company’s consensus mark for 2021 bottom line is pegged at $4.41 per share, indicating growth of 51.6% from the year-ago period’s reported figure. In the last reported quarter, the company delivered an earnings surprise of 84.1%. The deathcare provider has a trailing four-quarter earnings surprise of 45.6%, on average.

Service Corporation International Price, Consensus and EPS Surprise

 

Service Corporation International Price, Consensus and EPS Surprise

Service Corporation International price-consensus-eps-surprise-chart | Service Corporation International Quote

 

Things to Consider

Service Corporation is benefiting from increased funeral services performed. The company is also gaining on the solid performance of preneed cemetery property. In its last earnings call, management highlighted that it expects preneed funeral sales production growth in high single-digit percentages for fourth-quarter 2021. It expects 2021 adjusted earnings per share (EPS) in the range of $4.15-$4.45. We note that the company’s earnings came in at $2.91 per share in 2020.

In its last earnings call, management highlighted that it expects to encounter mild wage and supply chain cost pressures in the near term. For fourth-quarter 2021, Service Corporation expects adjusted EPS between 74 cents and $1.04. The midpoint of the guidance — 89 cents per share — suggests a decline from $1.13 reported in fourth-quarter 2020. Apart from this, management is expecting a year-over-year comparable volume decline in the high single-digit percentage range during the quarter under review in the funeral segment. Taking about the cemetery category, it expects atneed cemetery revenues to be comparatively flat year over year in the quarter.

What the Zacks Model Unveils

Our proven model predicts 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 carries a Zacks Rank #3 and has an Earnings ESP of +17.39%.

Other Stocks Poised to Beat Earnings Estimates

Here are some more 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:

Grocery Outlet Holding (GO - Free Report) has an Earnings ESP of +8.45% and a Zacks Rank #3. Grocery Outlet is anticipated to register a top-and bottom-line decline when it reports fourth-quarter 2021 results. The Zacks Consensus Estimate for GO’s quarterly revenues is pegged at $774.2 million, indicating a decline of nearly 4% from the figure reported in the prior-year quarter.

The Zacks Consensus Estimate for Grocery Outlet’s bottom line has remained unchanged in the past 30 days at 20 cents per share. The consensus estimate for earnings suggests a decline of 16.7% from the year-ago quarter’s reported figure. Grocery Outlet delivered an earnings beat of 4.5%, on average, in the trailing four quarters. You can see the complete list of today’s Zacks #1 Rank stocks here.

Hormel Foods (HRL - Free Report) currently has an Earnings ESP of +1.14% and a Zacks Rank of 3. The company is likely to register an increase in the top and the bottom line when it reports first-quarter fiscal 2022 results. The consensus mark for HRL's quarterly revenues is pegged at $2.87 billion, suggesting a rise of 16.6% from the figure reported in the prior-year quarter.

The Zacks Consensus Estimate has moved down 8.3% to 44 cents per share in the past 30 days. The consensus estimate indicates 7.3% growth from 41 cents reported in the year-ago quarter. HRL has delivered an earnings beat of 1.8%, on average, in the trailing four quarters.

Lamb Weston (LW - Free Report) currently has an Earnings ESP of +3.91% and a Zacks Rank of 3. The company is likely to register top-line growth when it reports third-quarter fiscal 2022 earnings. The consensus mark for LW’s quarterly revenues is pegged at $971.7 million, suggesting 8.5% growth from the figure reported in the prior-year quarter.

The consensus mark for quarterly earnings has moved down by a penny in the past 30 days to 45 cents per share. However, the consensus estimate for LW is expected to remain unchanged year over year. LW delivered an earnings beat of 51.5% in the last reported quarter.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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