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What's in Store for Service Corporation (SCI) in Q2 Earnings?

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Service Corporation International (SCI - Free Report) is likely to register a top and bottom-line decline when it reports second-quarter 2022 earnings on Aug 2. The Zacks Consensus Estimate for quarterly revenues is pegged at $956 million, suggesting a decline of 3.2% from the prior-year quarter’s reported figure.

The Zacks Consensus Estimate for quarterly earnings has remained unchanged in the past 30 days at 82 cents per share, suggesting a drop of 10.9% from the figure reported in the prior-year quarter. This deathcare products and services company has a trailing four-quarter earnings surprise of around 44%, on average. SCI delivered an earnings surprise of 35.4% in the last reported quarter.

Factors to Note

Service Corporation has been benefiting from increased funeral revenues. A rise in velocity and sales averages has been working well for the company as it continues to gain on elevated leads. On its last earnings call, management stated that the percentage of families opting to have funerals has reverted to pre-pandemic levels. Also, the funeral sales average is being boosted by a rise in other revenues, including flowers and catering. The continuation of such trends bodes well for the segment in the quarter under review.

However, the company saw modest cost inflation related to normalized staffing and service levels and increased incentive compensations in the last reported quarter. The persistence of these factors might have affected profits in the quarter to be reported.

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 carries a Zacks Rank #3 and has 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 you may want to consider as our model shows that these have the right combination of elements to post an earnings beat.

Corteva (CTVA - Free Report) currently has an Earnings ESP of +0.20% and a Zacks Rank of 1. The company is likely to register an increase in the bottom line when it reports second-quarter 2022 results. The Zacks Consensus Estimate for quarterly earnings has risen by a penny over the past seven days to $1.47 per share in the past 30 days. The consensus mark for CTVA’s earnings suggests 5% growth from the year-ago quarter’s reported number. You can see the complete list of today’s Zacks #1 Rank stocks here.

Corteva’s top line is expected to rise year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $6.2 billion, which suggests a rise of 9.8% from the figure reported in the prior-year quarter. CTVA delivered an earnings beat of 22.3%, on average, in the trailing four quarters.

Kellogg (K - Free Report) currently has an Earnings ESP of +2.01% and a Zacks Rank of 3. The company is likely to register an increase in the top line when it reports second-quarter 2022 results. The Zacks Consensus Estimate for quarterly revenues is pegged at $3.7 billion, which suggests a rise of 2.6% from the figure reported in the prior-year quarter.

The Zacks Consensus Estimate for K’s quarterly earnings has remained unchanged in the past 30 days at $1.05 per share. The consensus mark indicates a 7.9% decline from the year-ago quarter’s reported number. Kellogg delivered an earnings beat of 12.8%, on average, in the trailing four quarters.

Tyson Foods (TSN - Free Report) currently has an Earnings ESP of +5.71% and a Zacks Rank of 3. The company is likely to register a rise in the top line when it reports third-quarter fiscal 2022 results. The Zacks Consensus Estimate for TSN’s quarterly revenues is pegged at $13.4 billion, which suggests a jump of 7% from the figure reported in the prior-year quarter.

The consensus mark for Tyson Foods’ quarterly earnings has moved down from $1.92 to $1.88 per share in the past 30 days. The consensus estimate for TSN’s third-quarter earnings suggests a decline of 30.4% from the year-ago quarter’s reported figure. Tyson Foods delivered an earnings beat of 33.3%, on average, in the trailing four quarters.

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