Service Corp. International
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Service Corp. International met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew slightly and GAAP earnings per share expanded significantly.
Gross margins grew, operating margins dropped, net margins increased.
Service Corp. International booked revenue of $586.6 million. The four analysts polled by S&P Capital IQ hoped for a top line of $590.5 million. GAAP sales were 2.7% higher than the prior-year quarter's $571.3 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 $0.19. The four earnings estimates compiled by S&P Capital IQ predicted $0.18 per share on the same basis. GAAP EPS of $0.20 for Q4 were 33% higher than the prior-year quarter's $0.15 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 22.2%, 30 basis points better than the prior-year quarter. Operating margin was 17.7%, 10 basis points worse than the prior-year quarter. Net margin was 7.6%, 120 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $596.6 million. On the bottom line, the average EPS estimate is $0.19.
Next year's average estimate for revenue is $2.35 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 42 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 41 give Service Corp. International a green thumbs-up, and one give 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.
Over the decades, small-cap stocks, like Service Corp. International have provided market-beating returns, provided they're value priced and have solid businesses. Read about a pair of companies with a lock on their markets in "Too Small to Fail: Two Small Caps the Government Won't Let Go Broke." Click here for instant access to this free report.
- Add Service Corp. International to My Watchlist.
Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.