Service Corp. International
The 10-second takeaway
For the quarter ended June 30 (Q2), Service Corp. International beat expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue increased. Non-GAAP earnings per share grew. GAAP earnings per share shrank.
Margins dropped across the board.
Service Corp. International logged revenue of $625.5 million. The three analysts polled by S&P Capital IQ anticipated sales of $610.8 million on the same basis. GAAP reported sales were the same as the prior-year quarter's.
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 three earnings estimates compiled by S&P Capital IQ predicted $0.20 per share. Non-GAAP EPS of $0.19 for Q2 were 5.6% higher than the prior-year quarter's $0.18 per share. GAAP EPS of $0.16 for Q2 were 5.9% lower than the prior-year quarter's $0.17 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 20.1%, 140 basis points worse than the prior-year quarter. Operating margin was 15.1%, 140 basis points worse than the prior-year quarter. Net margin was 5.4%, 80 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $600.9 million. On the bottom line, the average EPS estimate is $0.18.
Next year's average estimate for revenue is $2.51 billion. The average EPS estimate is $0.89.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 192 members out of 211 rating the stock outperform, and 19 members rating it underperform. Among 58 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 53 give Service Corp. International a green thumbs-up, and five 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 $22.20.
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