Funeral services company Service International (NYSE:SCI)
will be announcing earnings results tomorrow after market close. Here’s what investors should know.
Service International beat analysts’ revenue expectations by 0.8% last quarter, reporting revenues of $1.09 billion, up 3.5% year on year. It was a mixed quarter for the company, with a decent beat of analysts’ EBITDA estimates but a miss of analysts’ funeral services performed estimates. It reported 88,934 funeral services performed, down 1.7% year on year.
This quarter, analysts are expecting Service International’s revenue to grow 1.4% year on year to $1.06 billion, in line with the 1.6% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.91 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Service International has only missed Wall Street’s revenue estimates once over the last two years, exceeding top-line expectations by 1.6% on average.
Looking at Service International’s peers in the specialized consumer services segment, some have already reported their Q1 results, giving us a hint as to what we can expect. ADT delivered year-on-year revenue growth of 6.5%, beating analysts’ expectations by 2%, and Pool reported a revenue decline of 4.4%, falling short of estimates by 2.5%. ADT’s stock price was unchanged after the resultswhile Pool was down 5.7%.
The outlook for 2025 remains clouded by potential trade policy changes and corporate tax discussions, which could impact business confidence and growth. While some of the specialized consumer services stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 5.8% on average over the last month. Service International’s stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $90.06 (compared to the current share price of $79.70).
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