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.
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