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Service Corporation Q2 Earnings on Deck: Factors to Watch for SCI

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Key Takeaways

  • SCI's second-quarter revenues are expected to increase about 1% to $1.1 billion.
  • Preneed cemetery sales, better leads and community outreach likely supported contract growth.
  • Pricing may lift funeral revenues, but soft volumes and higher costs could pressure margins.

Service Corporation International (SCI - Free Report) is likely to witness top-line growth when it reports second-quarter 2026 earnings on July 29. The Zacks Consensus Estimate for revenues is pegged at $1.1 billion, indicating an increase of about 1% from the prior-year quarter’s reported figure.

The consensus mark for earnings has remained unchanged over the past 30 days at 87 cents a share, which suggests a decline of 1.1% from the figure reported in the year-ago period. SCI has a trailing four-quarter surprise of 1.7%, on average.

Factors Likely to Influence SCI’s Upcoming Results

SCI’s cemetery performance is likely to have benefited from sustained preneed sales momentum. Investments in salesforce retention and hiring, improved lead quality, expanded seminars and community-based outreach are likely to have continued to support contract velocity and customer reach beyond funeral-home-generated leads.

Funeral revenues are anticipated to have benefited from disciplined pricing and favorable average revenue per service. Management previously stated that average revenue per service was expected to continue benefiting from older preneed contracts maturing, with accumulated trust earnings and newer, higher-value contracts entering the backlog.

However, funeral service volumes are likely to have remained a key headwind. Management indicated that April volumes were still down, though the decline was less severe than in the first quarter, and expected improvement only gradually through the quarter. The company’s high fixed-cost structure may also have limited margin expansion if funeral volumes remained soft. Higher selling compensation tied to preneed production and elevated cemetery maintenance costs could have added to margin pressure.

Earnings Whispers for SCI

Our proven model doesn’t conclusively predict an earnings beat for SCI 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.
 
SCI currently 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 worth considering, as our model shows that these have the right combination of elements to beat on earnings this reporting cycle.

Archer-Daniels-Midland Company (ADM - Free Report) currently has an Earnings ESP of +11.52% and a Zacks Rank of 2. The consensus estimate for ADM’s quarterly revenues is pinned at $22.4 billion, which calls for 5.7% growth from the figure reported in the prior-year quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Archer-Daniels’ upcoming quarter’s EPS is pegged at $1.27, which implies a 36.6% rise year over year. ADM delivered a trailing four-quarter earnings surprise of 5.4%, on average.

Kimberly-Clark Corporation (KMB - Free Report) currently has an Earnings ESP of +1.43% and a Zacks Rank of 3. The Zacks Consensus Estimate for Kimberly-Clark’s upcoming quarterly revenues is pegged at $4.2 billion. The figure indicates a 1.7% increase from the prior-year quarter. 

The Zacks Consensus Estimate for Kimberly-Clark’s quarterly earnings per share is pegged at $2.00, calling for a 4.2% gain from the year-ago period figure. KMB delivered a trailing four-quarter earnings surprise of 19.1%, on average.

Monster Beverage Corporation (MNST - Free Report) currently has an Earnings ESP of +2.61% and a Zacks Rank of 3. The consensus estimate for Monster Beverage’s quarterly revenues is pinned at $2.4 billion, which suggests 14.5% growth from the figure reported in the prior-year quarter. 

The Zacks Consensus Estimate for the upcoming quarter’s EPS is pegged at 59 cents, which calls for a 13.5% jump year over year. MNST delivered a trailing four-quarter earnings surprise of 9.6%, on average.

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