Service Corp. International
The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Service Corp. International missed slightly on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased slightly and GAAP earnings per share expanded significantly.
Margins grew across the board.
Service Corp. International booked revenue of $581.2 million. The four analysts polled by S&P Capital IQ expected a top line of $592.8 million on the same basis. GAAP reported sales were 1.4% higher than the prior-year quarter's $573.0 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.19. The four earnings estimates compiled by S&P Capital IQ averaged $0.15 per share. GAAP EPS of $0.19 for Q3 were 27% 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 20.9%, 220 basis points better than the prior-year quarter. Operating margin was 16.3%, 180 basis points better than the prior-year quarter. Net margin was 7.1%, 90 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $608.5 million. On the bottom line, the average EPS estimate is $0.20.
Next year's average estimate for revenue is $2.40 billion. The average EPS estimate is $0.75.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 179 members out of 197 rating the stock outperform, and 18 members rating it underperform. Among 46 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 44 give Service Corp. International a green thumbs-up, and two 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 $14.60.
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