Service Corp. International
The 10-second takeaway
For the quarter ended March 31 (Q1), Service Corp. International beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew. Non-GAAP earnings per share grew significantly. GAAP earnings per share expanded significantly.
Margins grew across the board.
Service Corp. International reported revenue of $652.4 million. The four analysts polled by S&P Capital IQ expected sales of $630.3 million on the same basis. GAAP reported sales were 8.3% higher than the prior-year quarter's $602.5 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 $0.28. The two earnings estimates compiled by S&P Capital IQ predicted $0.23 per share. Non-GAAP EPS of $0.28 for Q1 were 40% higher than the prior-year quarter's $0.20 per share. GAAP EPS of $0.27 for Q1 were 23% higher than the prior-year quarter's $0.22 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 24.5%, 330 basis points better than the prior-year quarter. Operating margin was 19.7%, 320 basis points better than the prior-year quarter. Net margin was 8.8%, 80 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $619.3 million. On the bottom line, the average EPS estimate is $0.20.
Next year's average estimate for revenue is $2.50 billion. The average EPS estimate is $0.87.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 190 members out of 208 rating the stock outperform, and 18 members rating it underperform. Among 50 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 47 give Service Corp. International a green thumbs-up, and three 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 $18.40.
Looking for alternatives to Service Corp. International? It takes more than great companies to build a fortune for the future. Learn the basic financial habits of millionaires next door and get focused stock ideas in our free report, "3 Stocks That Will Help You Retire Rich." Click here for instant access to this free report.
- Add Service Corp. International to My Watchlist.