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What's in Store for Service Corporation (SCI) in Q1 Earnings?
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Service Corporation International (SCI - Free Report) is likely to witness a year-over-year decline in its top and bottom lines when it reports first-quarter 2022 earnings on May 3. The Zacks Consensus Estimate for revenues is pegged at $1,023 million, suggesting a fall of 5.1% from the prior-year quarter’s reported figure.
The Zacks Consensus Estimate for earnings has remained unchanged over the past 30 days at 99 cents per share. This indicates a decrease of 25% from the figure reported in the prior-year period. Service Corporation has a trailing four-quarter earnings surprise of 43.8%, on average. This deathcare products company delivered an earnings surprise of around 17% in the last reported quarter.
Service Corporation International Price, Consensus and EPS Surprise
Service Corporation witnessed some inflationary cost increases related to the staffing, maintenance and energy-associated expenses in the last reported quarter. SCI witnessed margin pressure in the cemetery segment from increased costs stemming from normalized staffing and service levels. During the quarter, Funeral margins were affected by increased costs stemming from normalized staffing and service levels due to more comprehensive services. Management also witnessed certain inflationary cost increases, mainly related to staffing and energy costs in the Funeral category. The persistence of these factors may have impacted results in the quarter under review.
That said, Service Corporation has been witnessing strength in the Cemetery segment for the past few quarters. The company has been seeing increased funerals and burials amid the pandemic. The funeral size has also increased with the lifting of curbs. The company has been committed to pursuing strategic buyouts for its segments (Funeral and Cemetery) and building new funeral homes to generate greater returns. On its last earnings call, management highlighted that it expects increased earnings in the first quarter of 2022 due to the pandemic as it continues to see higher funeral volumes and atneed cemetery sales.
What the Zacks Model Unveils
Our proven model doesn’t conclusively predict an earnings beat for Service Corporation this time. 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, which is not the case here.
Service Corporation currently has a Zacks Rank #3 and an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks With the Favorable Combination
Here are some companies that you may want to consider as our model shows that these have the right combination of elements to post an earnings beat in the to-be-reported quarter.
The Zacks Consensus Estimate for Inter Parfums’ bottom line stands at 85 cents per share, which suggests a decline of 2.3% from the year-ago period’s reported figure. IPAR has a trailing four-quarter earnings surprise of 46.7%, on average.
Celsius Holdings (CELH - Free Report) has an Earnings ESP of +12.50% and a Zacks Rank #3. It is anticipated to register a top and bottom-line increase when it reports first-quarter 2022 results. The Zacks Consensus Estimate for Celsius Holdings’ revenues is pegged at $117.6 million, indicating growth of 135.1% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for Celsius Holdings’ quarterly earnings is pegged at 3 cents per share, suggesting a rise of 200% from the year-ago quarter’s reported figure. CELH delivered an earnings beat of 156.3%, on average, in the trailing four quarters.
Hormel Foods (HRL - Free Report) has an Earnings ESP of +1.29% and a Zacks Rank #3. The company is expected to register top-and bottom-line growth when it reports second-quarter fiscal 2022 results. The consensus mark for Hormel Foods’ revenues is pegged at nearly $3 billion, indicating an increase of 15.1% from the year-ago quarter.
The Zacks Consensus Estimate for Hormel Foods’ quarterly earnings per share of 46 cents suggests a rise of 9.5% from the year-ago quarter’s reported figure. HRL has a trailing four-quarter earnings surprise of 1.7%, on average.
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What's in Store for Service Corporation (SCI) in Q1 Earnings?
Service Corporation International (SCI - Free Report) is likely to witness a year-over-year decline in its top and bottom lines when it reports first-quarter 2022 earnings on May 3. The Zacks Consensus Estimate for revenues is pegged at $1,023 million, suggesting a fall of 5.1% from the prior-year quarter’s reported figure.
The Zacks Consensus Estimate for earnings has remained unchanged over the past 30 days at 99 cents per share. This indicates a decrease of 25% from the figure reported in the prior-year period. Service Corporation has a trailing four-quarter earnings surprise of 43.8%, on average. This deathcare products company delivered an earnings surprise of around 17% in the last reported quarter.
Service Corporation International Price, Consensus and EPS Surprise
Service Corporation International price-consensus-eps-surprise-chart | Service Corporation International Quote
Key Factors to Consider
Service Corporation witnessed some inflationary cost increases related to the staffing, maintenance and energy-associated expenses in the last reported quarter. SCI witnessed margin pressure in the cemetery segment from increased costs stemming from normalized staffing and service levels. During the quarter, Funeral margins were affected by increased costs stemming from normalized staffing and service levels due to more comprehensive services. Management also witnessed certain inflationary cost increases, mainly related to staffing and energy costs in the Funeral category. The persistence of these factors may have impacted results in the quarter under review.
That said, Service Corporation has been witnessing strength in the Cemetery segment for the past few quarters. The company has been seeing increased funerals and burials amid the pandemic. The funeral size has also increased with the lifting of curbs. The company has been committed to pursuing strategic buyouts for its segments (Funeral and Cemetery) and building new funeral homes to generate greater returns. On its last earnings call, management highlighted that it expects increased earnings in the first quarter of 2022 due to the pandemic as it continues to see higher funeral volumes and atneed cemetery sales.
What the Zacks Model Unveils
Our proven model doesn’t conclusively predict an earnings beat for Service Corporation this time. 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, which is not the case here.
Service Corporation currently has a Zacks Rank #3 and an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks With the Favorable Combination
Here are some companies that you may want to consider as our model shows that these have the right combination of elements to post an earnings beat in the to-be-reported quarter.
Inter Parfums (IPAR - Free Report) has an Earnings ESP of +11.02% and a Zacks Rank #2. The company is expected to register top-line growth when it reports first-quarter 2022 results. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Inter Parfums’ bottom line stands at 85 cents per share, which suggests a decline of 2.3% from the year-ago period’s reported figure. IPAR has a trailing four-quarter earnings surprise of 46.7%, on average.
Celsius Holdings (CELH - Free Report) has an Earnings ESP of +12.50% and a Zacks Rank #3. It is anticipated to register a top and bottom-line increase when it reports first-quarter 2022 results. The Zacks Consensus Estimate for Celsius Holdings’ revenues is pegged at $117.6 million, indicating growth of 135.1% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for Celsius Holdings’ quarterly earnings is pegged at 3 cents per share, suggesting a rise of 200% from the year-ago quarter’s reported figure. CELH delivered an earnings beat of 156.3%, on average, in the trailing four quarters.
Hormel Foods (HRL - Free Report) has an Earnings ESP of +1.29% and a Zacks Rank #3. The company is expected to register top-and bottom-line growth when it reports second-quarter fiscal 2022 results. The consensus mark for Hormel Foods’ revenues is pegged at nearly $3 billion, indicating an increase of 15.1% from the year-ago quarter.
The Zacks Consensus Estimate for Hormel Foods’ quarterly earnings per share of 46 cents suggests a rise of 9.5% from the year-ago quarter’s reported figure. HRL has a trailing four-quarter earnings surprise of 1.7%, on average.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.