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Service Corp (SCI) Announces Stock Repurchase Program Expansion
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Service Corporation International (SCI - Free Report) has announced a significant expansion of its share repurchase program. Management gave a nod to additional share buybacks of nearly $477 million.
This, along with the $123 million left under the existing program, brings the total share repurchase authority to a substantial $600 million, effective Nov 8.
Share repurchases are often viewed as a strategic approach to demonstrate a company's belief in its value and commitment to enhancing shareholder returns. By buying back its stock, a company signals to the market that it perceives the current stock price as undervalued and sees a positive trajectory for future earnings.
In the third quarter of 2023, the company returned approximately $132 million to shareholders. This included dividends totaling $44 million and share buybacks amounting to $88 million. The company returned about $565 million to shareholders in the first nine months of 2023.
Image Source: Zacks Investment Research
What’s More?
Service Corp, the leading provider of deathcare products and services in North America, also declared a quarterly cash dividend of 29 cents per common stock share. This dividend is scheduled for payment on Dec 29, 2023, benefiting shareholders of record as of Dec 15, 2023.
SCI’s regular dividend payments align with its strategy of providing value to its shareholders, alongside reflecting the company's confidence in its ongoing financial strength.
Wrapping Up
SCI’s total comparable funeral revenues experienced a 1.3% decline in the third quarter of 2023, primarily attributed to a decrease in core funeral revenues. Looking into 2023, the company anticipates a low to mid-single-digit decrease in funeral volumes due to the pandemic’s pull-forward impact. Shares of this Zacks Rank #5 (Strongly Sell) company have fallen 18.5% in the past year compared to the industry’s decline of 14.7%.
Nonetheless, Service Corp has been seeing a rise in Cemetery segment revenues for a while now. In the third quarter of 2023, consolidated Cemetery revenues came in at $447.1 million, up from the $423.8 million reported in the year-ago quarter. Management expects preneed cemetery sales production growth of flat to an increase at a low-single-digit rate in the fourth quarter.
Service Corp’s holistic approach, combining share repurchases and regular dividends, goes in tandem with its overarching strategy of providing value to shareholders while maintaining financial prudence. These proactive measures underscore the company’s growth prospects.
Some Better-Ranked Staple Bets
Here, we have highlighted three better-ranked stocks, namely Lamb Weston Holdings, Inc. (LW - Free Report) , Vital Farms Inc. (VITL - Free Report) and MGP Ingredients, Inc. (MGPI - Free Report) .
Lamb Weston is a leading global manufacturer, marketer and distributor of value-added frozen potato products. It currently sports a Zacks Rank #1 (Strong Buy). LW has a trailing four-quarter earnings surprise of 46.2%, on average. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Lamb Weston’s current fiscal-year sales and earnings suggests growth of 28.3% and 24.8%, respectively, from the year-ago reported figures.
Vital Farms offers a range of produced pasture-raised foods. It currently has a Zacks Rank #2 (Buy). VITL has a trailing four-quarter earnings surprise of 143.3%, on average.
The Zacks Consensus Estimate for Vital Farms’ current financial-year sales suggests growth of 29.6% from the year-ago reported figure.
MGP Ingredients produces and markets ingredients and distillery products to the packaged goods industry. The company currently has a Zacks Rank #2. MGPI has a trailing four-quarter earnings surprise of 20.6%, on average.
The Zacks Consensus Estimate for MGP Ingredients’ current financial-year sales and earnings suggests growth of 5.8% and 13.8%, respectively, from the year-ago reported figures.
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Service Corp (SCI) Announces Stock Repurchase Program Expansion
Service Corporation International (SCI - Free Report) has announced a significant expansion of its share repurchase program. Management gave a nod to additional share buybacks of nearly $477 million.
This, along with the $123 million left under the existing program, brings the total share repurchase authority to a substantial $600 million, effective Nov 8.
Share repurchases are often viewed as a strategic approach to demonstrate a company's belief in its value and commitment to enhancing shareholder returns. By buying back its stock, a company signals to the market that it perceives the current stock price as undervalued and sees a positive trajectory for future earnings.
In the third quarter of 2023, the company returned approximately $132 million to shareholders. This included dividends totaling $44 million and share buybacks amounting to $88 million. The company returned about $565 million to shareholders in the first nine months of 2023.
Image Source: Zacks Investment Research
What’s More?
Service Corp, the leading provider of deathcare products and services in North America, also declared a quarterly cash dividend of 29 cents per common stock share. This dividend is scheduled for payment on Dec 29, 2023, benefiting shareholders of record as of Dec 15, 2023.
SCI’s regular dividend payments align with its strategy of providing value to its shareholders, alongside reflecting the company's confidence in its ongoing financial strength.
Wrapping Up
SCI’s total comparable funeral revenues experienced a 1.3% decline in the third quarter of 2023, primarily attributed to a decrease in core funeral revenues. Looking into 2023, the company anticipates a low to mid-single-digit decrease in funeral volumes due to the pandemic’s pull-forward impact. Shares of this Zacks Rank #5 (Strongly Sell) company have fallen 18.5% in the past year compared to the industry’s decline of 14.7%.
Nonetheless, Service Corp has been seeing a rise in Cemetery segment revenues for a while now. In the third quarter of 2023, consolidated Cemetery revenues came in at $447.1 million, up from the $423.8 million reported in the year-ago quarter. Management expects preneed cemetery sales production growth of flat to an increase at a low-single-digit rate in the fourth quarter.
Service Corp’s holistic approach, combining share repurchases and regular dividends, goes in tandem with its overarching strategy of providing value to shareholders while maintaining financial prudence. These proactive measures underscore the company’s growth prospects.
Some Better-Ranked Staple Bets
Here, we have highlighted three better-ranked stocks, namely Lamb Weston Holdings, Inc. (LW - Free Report) , Vital Farms Inc. (VITL - Free Report) and MGP Ingredients, Inc. (MGPI - Free Report) .
Lamb Weston is a leading global manufacturer, marketer and distributor of value-added frozen potato products. It currently sports a Zacks Rank #1 (Strong Buy). LW has a trailing four-quarter earnings surprise of 46.2%, on average. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Lamb Weston’s current fiscal-year sales and earnings suggests growth of 28.3% and 24.8%, respectively, from the year-ago reported figures.
Vital Farms offers a range of produced pasture-raised foods. It currently has a Zacks Rank #2 (Buy). VITL has a trailing four-quarter earnings surprise of 143.3%, on average.
The Zacks Consensus Estimate for Vital Farms’ current financial-year sales suggests growth of 29.6% from the year-ago reported figure.
MGP Ingredients produces and markets ingredients and distillery products to the packaged goods industry. The company currently has a Zacks Rank #2. MGPI has a trailing four-quarter earnings surprise of 20.6%, on average.
The Zacks Consensus Estimate for MGP Ingredients’ current financial-year sales and earnings suggests growth of 5.8% and 13.8%, respectively, from the year-ago reported figures.