Service International (SCI) Q4 Earnings Report Preview: What To Look For

StockStory
02-11
Service International (SCI) Q4 Earnings Report Preview: What To Look For

Funeral services company Service International (NYSE:SCI) will be reporting earnings tomorrow afternoon. Here’s what you need to know.

Service International met analysts’ revenue expectations last quarter, reporting revenues of $1.01 billion, up 1.2% year on year. It was a mixed quarter for the company, with a narrow beat of analysts’ funeral services performed. It reported 85,743 funeral services performed, flat year on year.

Is Service International a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting Service International’s revenue to grow 2.7% year on year to $1.08 billion, in line with the 2.7% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.05 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 2.1% on average.

Looking at Service International’s peers in the specialized consumer services segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Matthews’s revenues decreased 10.7% year on year, missing analysts’ expectations by 5.9%, and H&R Block reported flat revenue, topping estimates by 1.4%. Matthews traded down 10% following the results while H&R Block’s stock price was unchanged.

Read our full analysis of Matthews’s results here and H&R Block’s results here.

There has been positive sentiment among investors in the specialized consumer services segment, with share prices up 3.2% on average over the last month. Service International is down 1.1% during the same time and is heading into earnings with an average analyst price target of $88.05 (compared to the current share price of $76.60).

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