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What's in Store for Service Corporation's (SCI) Q2 Earnings?
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Service Corporation International (SCI - Free Report) is slated to release second-quarter 2018 results on Jul 30. This funeral services company delivered a positive earnings surprise in the last reported quarter and has outperformed the Zacks Consensus Estimate by an average of 16.7% over the trailing four quarters.
Let’s see if the company can keep its solid record intact this time around too.
Service Corporation International Price and EPS Surprise
The Zacks Consensus Estimate for Service Corporation’s earnings has remained stable over the past 30 days at 43 cents per share, which shows a jump of nearly 23% from the year-ago period earnings. Moreover, the Zacks Consensus Estimate for sales of $780 million indicates year-over-year growth of 1%.
Factors Impacting the Quarter
Service Corporation is likely to continue gaining from its strategic growth efforts, which are mainly aimed at increasing revenues and utilizing scale. The company remains focused on catering to the changing consumer needs and utilizing its robust scale to drive preneed sales at both its segments — funeral and cemetery. To this end, Service Corporation remains committed toward pursuing strategic buyouts for both the segments and building new funeral homes to generate greater returns. Further, buyouts in the cemetery segment are aimed at exploiting increased opportunities to cater to Baby Boomers. Service Corporation is also making technological advancements to better present its products and services to consumers.
These factors, along with the demographic landscape, remain tailwinds to the company’s revenues. Markedly, Service Corporation remains well positioned to continue gaining from the aging Baby Boomer population, which is fueling the company’s preneed cemetery sales programs and is expected to boost its preneed and atneed funeral results. These remain major drivers for the company that marked its sixth straight earnings beat in first-quarter 2018. Both top and bottom lines grew year over year, backed by solid funeral service revenues, strong flu season and strong cost management.
However, the top line marked its third straight miss. This was somewhat accountable to comparable cemetery revenues that haven’t witnessed year over year upside for two straight quarters now. In the first quarter of 2018, the metric remained flat, while it declined 2% in the fourth quarter of 2017. Also, in the first quarter, comparable preneed cemetery sales production dipped 3.2% on account of unfavorable timing of large preneed property sales and a tough year-over-year comparison. Nonetheless, management expects cemetery preneed sales production to increase at a mid-single digit rate in 2018, which bodes well for the quarter to be reported.
What Does the Zacks Model Unveil?
Our proven model doesn’t show thatService Corporationcan beat bottom-line estimates this quarter. For this to happen, a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). You can uncover the best stocks to buy or sell before they’re reported with ourEarnings ESP Filter.
Though Service Corporation carries a Zacks Rank #3 (Hold), the company’s Earnings ESP of 0.00% makes surprise prediction difficult.
Stocks Poised to Beat Earnings Estimates
Here are some companies you may want to consider, as our model shows that these have the right combination of elements to post earnings beat:
Columbia Sportswear (COLM - Free Report) has an Earnings ESP of +19.90% and a Zacks Rank of 2.
Michael Kors Holdings , a Zacks #3 Ranked stock, has an Earnings ESP of +1.13%.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
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What's in Store for Service Corporation's (SCI) Q2 Earnings?
Service Corporation International (SCI - Free Report) is slated to release second-quarter 2018 results on Jul 30. This funeral services company delivered a positive earnings surprise in the last reported quarter and has outperformed the Zacks Consensus Estimate by an average of 16.7% over the trailing four quarters.
Let’s see if the company can keep its solid record intact this time around too.
Service Corporation International Price and EPS Surprise
Service Corporation International Price and EPS Surprise | Service Corporation International Quote
What to Expect?
The Zacks Consensus Estimate for Service Corporation’s earnings has remained stable over the past 30 days at 43 cents per share, which shows a jump of nearly 23% from the year-ago period earnings. Moreover, the Zacks Consensus Estimate for sales of $780 million indicates year-over-year growth of 1%.
Factors Impacting the Quarter
Service Corporation is likely to continue gaining from its strategic growth efforts, which are mainly aimed at increasing revenues and utilizing scale. The company remains focused on catering to the changing consumer needs and utilizing its robust scale to drive preneed sales at both its segments — funeral and cemetery. To this end, Service Corporation remains committed toward pursuing strategic buyouts for both the segments and building new funeral homes to generate greater returns. Further, buyouts in the cemetery segment are aimed at exploiting increased opportunities to cater to Baby Boomers. Service Corporation is also making technological advancements to better present its products and services to consumers.
These factors, along with the demographic landscape, remain tailwinds to the company’s revenues. Markedly, Service Corporation remains well positioned to continue gaining from the aging Baby Boomer population, which is fueling the company’s preneed cemetery sales programs and is expected to boost its preneed and atneed funeral results. These remain major drivers for the company that marked its sixth straight earnings beat in first-quarter 2018. Both top and bottom lines grew year over year, backed by solid funeral service revenues, strong flu season and strong cost management.
However, the top line marked its third straight miss. This was somewhat accountable to comparable cemetery revenues that haven’t witnessed year over year upside for two straight quarters now. In the first quarter of 2018, the metric remained flat, while it declined 2% in the fourth quarter of 2017. Also, in the first quarter, comparable preneed cemetery sales production dipped 3.2% on account of unfavorable timing of large preneed property sales and a tough year-over-year comparison. Nonetheless, management expects cemetery preneed sales production to increase at a mid-single digit rate in 2018, which bodes well for the quarter to be reported.
What Does the Zacks Model Unveil?
Our proven model doesn’t show that Service Corporation can beat bottom-line estimates this quarter. For this to happen, a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Though Service Corporation carries a Zacks Rank #3 (Hold), the company’s Earnings ESP of 0.00% makes surprise prediction difficult.
Stocks Poised to Beat Earnings Estimates
Here are some companies you may want to consider, as our model shows that these have the right combination of elements to post earnings beat:
Guess? (GES - Free Report) , a Zacks #2 Ranked company, has an Earnings ESP of +4.08%. You can see the complete list of today’s Zacks #1 Rank stocks here.
Columbia Sportswear (COLM - Free Report) has an Earnings ESP of +19.90% and a Zacks Rank of 2.
Michael Kors Holdings , a Zacks #3 Ranked stock, has an Earnings ESP of +1.13%.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot trades we're targeting>>