Service Corp. International
The 10-second takeaway
For the quarter ended March 31 (Q1), Service Corp. International met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew and GAAP earnings per share increased significantly.
Gross margins contracted, operating margins increased, net margins expanded.
Service Corp. International recorded revenue of $602.5 million. The three analysts polled by S&P Capital IQ looked for revenue of $602.1 million on the same basis. GAAP reported sales were 3.9% higher than the prior-year quarter's $579.7 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $0.20. The three earnings estimates compiled by S&P Capital IQ forecast $0.18 per share on the same basis. GAAP EPS of $0.22 for Q1 were 38% higher than the prior-year quarter's $0.16 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 21.2%, 60 basis points worse than the prior-year quarter. Operating margin was 16.9%, 10 basis points better than the prior-year quarter. Net margin was 8.0%, 130 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $601.4 million. On the bottom line, the average EPS estimate is $0.16.
Next year's average estimate for revenue is $2.39 billion. The average EPS estimate is $0.70.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 173 members out of 192 rating the stock outperform, and 19 members rating it underperform. Among 37 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 36 give Service Corp. International a green thumbs-up, and one gives it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Service Corp. International is buy, with an average price target of $13.75.
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