We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
What to Note Ahead of Service Corp's (SCI) Q2 Earnings?
Read MoreHide Full Article
Service Corporation International (SCI - Free Report) is expected to register declines in its top and bottom lines when it reports second-quarter 2023 earnings on Aug 1. The Zacks Consensus Estimate for quarterly revenues is pegged at $972.8 million, suggesting a decline of 1.8% from the prior-year quarter’s reported figure.
The Zacks Consensus Estimate for quarterly earnings has been unchanged in the past 30 days at 80 cents per share, suggesting a decline of 4.8% from the figure reported in the prior-year quarter. This deathcare products and services company has a trailing four-quarter earnings surprise of 14.1%, on average. SCI delivered an earnings surprise of 5.7% in the last reported quarter.
Factors to Note
Service Corp has been grappling with inflationary pressure and rising costs for a while now. The trend persisted in the first quarter of 2023, with the cost of revenues and corporate, general and administrative expenses increasing by 0.6% and 5.9%, respectively, on a year-over-year basis. Its cost of revenue as a percentage of total revenues expanded 580 basis points (bps) year over year to 71.9% in the quarter.
The company’s high capital expenditures related to the construction of new facilities, purchase of real estate and expansion of its funeral homes and cemeteries might have hampered its second-quarter 2023 margin performance. We anticipate Service Corp’s gross margin to contract by 170 bps year over year in the second quarter.
Service Corp has been experiencing continued pressure from increasing interest costs on its floating-rate debt, which is expected to be reflected in the second quarter. An increase in the number of cremations as another option to the traditional funeral service poses threats to funeral service companies. For the second quarter, our model indicates consolidated funeral revenues to decline 2.6% to $534.3 million on a year-over-year basis.
However, the company has been benefiting from robust preened cemetery sales, which is expected to be reflected in the second-quarter results. The company remains focused on building new funeral homes and improving the existing facilities to cater to strong service demand. This is likely to have enabled the company to generate higher returns in the quarter under review.
What the Zacks Model Unveils
Our proven model doesn’t conclusively predict an earnings beat for Service Corp 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 International Price and EPS Surprise
Service Corp currently has a Zacks Rank #4 (Sell) 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 you may want to consider, as our model shows that these have the right combination of elements to deliver an earnings beat.
The company’s top and bottom lines are expected to increase year over year when it reports second-quarter 2023 results. The Zacks Consensus Estimate for Celsius Holdings’ quarterly revenues is pegged at $278.9 million, calling for growth of 81.1% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for the quarterly EPS is pegged at 31 cents, indicating an improvement from 12 cents reported in the year-ago quarter. CELH had an earnings surprise of 81.8% in the last reported quarter.
Coty (COTY - Free Report) currently has an Earnings ESP of +28.57% and a Zacks Rank #2. The company’s top and bottom lines are expected to increase year over year when it reports its upcoming quarterly results. The Zacks Consensus Estimate for Coty’s quarterly revenues is pegged at $1.3 billion, suggesting a rise of 13.4% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for the quarterly EPS is pegged at 2 cents, which indicates 300% growth from the year-ago period figure. COTY has a trailing four-quarter earnings surprise of 145%, on average.
Church & Dwight Co. (CHD - Free Report) currently has an Earnings ESP of +1.14% and a Zacks Rank #2. CHD is likely to register top-line growth when it reports second-quarter results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $1.42 billion, which suggests growth of 7.3% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for Church & Dwight’s quarterly earnings is pegged at 79 cents per share, suggesting an increase of 4% from the year-ago quarter’s reported number. CHD has delivered an earnings beat of 9.8%, on average, in the trailing four quarters.
Image: Bigstock
What to Note Ahead of Service Corp's (SCI) Q2 Earnings?
Service Corporation International (SCI - Free Report) is expected to register declines in its top and bottom lines when it reports second-quarter 2023 earnings on Aug 1. The Zacks Consensus Estimate for quarterly revenues is pegged at $972.8 million, suggesting a decline of 1.8% from the prior-year quarter’s reported figure.
The Zacks Consensus Estimate for quarterly earnings has been unchanged in the past 30 days at 80 cents per share, suggesting a decline of 4.8% from the figure reported in the prior-year quarter. This deathcare products and services company has a trailing four-quarter earnings surprise of 14.1%, on average. SCI delivered an earnings surprise of 5.7% in the last reported quarter.
Factors to Note
Service Corp has been grappling with inflationary pressure and rising costs for a while now. The trend persisted in the first quarter of 2023, with the cost of revenues and corporate, general and administrative expenses increasing by 0.6% and 5.9%, respectively, on a year-over-year basis. Its cost of revenue as a percentage of total revenues expanded 580 basis points (bps) year over year to 71.9% in the quarter.
The company’s high capital expenditures related to the construction of new facilities, purchase of real estate and expansion of its funeral homes and cemeteries might have hampered its second-quarter 2023 margin performance. We anticipate Service Corp’s gross margin to contract by 170 bps year over year in the second quarter.
Service Corp has been experiencing continued pressure from increasing interest costs on its floating-rate debt, which is expected to be reflected in the second quarter. An increase in the number of cremations as another option to the traditional funeral service poses threats to funeral service companies. For the second quarter, our model indicates consolidated funeral revenues to decline 2.6% to $534.3 million on a year-over-year basis.
However, the company has been benefiting from robust preened cemetery sales, which is expected to be reflected in the second-quarter results. The company remains focused on building new funeral homes and improving the existing facilities to cater to strong service demand. This is likely to have enabled the company to generate higher returns in the quarter under review.
What the Zacks Model Unveils
Our proven model doesn’t conclusively predict an earnings beat for Service Corp 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 International Price and EPS Surprise
Service Corporation International price-eps-surprise | Service Corporation International Quote
Service Corp currently has a Zacks Rank #4 (Sell) 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 you may want to consider, as our model shows that these have the right combination of elements to deliver an earnings beat.
Celsius Holdings, Inc. (CELH - Free Report) currently has an Earnings ESP of +50.64% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
The company’s top and bottom lines are expected to increase year over year when it reports second-quarter 2023 results. The Zacks Consensus Estimate for Celsius Holdings’ quarterly revenues is pegged at $278.9 million, calling for growth of 81.1% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for the quarterly EPS is pegged at 31 cents, indicating an improvement from 12 cents reported in the year-ago quarter. CELH had an earnings surprise of 81.8% in the last reported quarter.
Coty (COTY - Free Report) currently has an Earnings ESP of +28.57% and a Zacks Rank #2. The company’s top and bottom lines are expected to increase year over year when it reports its upcoming quarterly results. The Zacks Consensus Estimate for Coty’s quarterly revenues is pegged at $1.3 billion, suggesting a rise of 13.4% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for the quarterly EPS is pegged at 2 cents, which indicates 300% growth from the year-ago period figure. COTY has a trailing four-quarter earnings surprise of 145%, on average.
Church & Dwight Co. (CHD - Free Report) currently has an Earnings ESP of +1.14% and a Zacks Rank #2. CHD is likely to register top-line growth when it reports second-quarter results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $1.42 billion, which suggests growth of 7.3% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for Church & Dwight’s quarterly earnings is pegged at 79 cents per share, suggesting an increase of 4% from the year-ago quarter’s reported number. CHD has delivered an earnings beat of 9.8%, on average, in the trailing four quarters.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.