Service Corporation International SCI is likely to register top and bottom-line growth when it reports fourth-quarter 2024 earnings on Feb. 12. The Zacks Consensus Estimate for revenues is pegged at $1.08 billion, indicating a 2.8% increase from the prior-year quarter’s reported figure.

The consensus mark for earnings has remained unchanged in the past 30 days at $1.05 per share, which suggests a 12.9% jump from the figure reported in the year-ago quarter. SCI has a trailing four-quarter earnings surprise of 0.3%, on average.

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SCI: Key Factors to Watch

Service Corporation benefits from its recession-resilient business model and diverse portfolio of services, including pre-need and at-need funeral and cemetery offerings. Favorable demographics, including the aging baby boomer population and urbanization trends, keep the company well-positioned.  Strategic investments in high-growth regions like California, Florida and Texas, as well as acquisitions of funeral homes and cemeteries, bolster its footprint and service capabilities. These upsides are likely to aid results in the quarter under review.

However, the company faces concerns such as gross margin compression in its funeral segment due to inflation, as well as rising general and administrative expenses. Service Corporation also faces challenging year-over-year comparisons due to the pull-forward effects of the pandemic, which temporarily increased funeral volumes and pre-need sales during 2020-2022. In the third quarter of 2024, funeral volumes showed a slight decline, and management expects this to stabilize only by 2025, which raises concerns for the fourth quarter.

Earnings Whispers for SCI Stock

Our proven model doesn’t conclusively predict an earnings beat for Service Corporation this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here. 

Service Corporation carries a Zacks Rank #3 and has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Stocks With the Favorable Combination

Here are some companies worth considering, as our model shows that these have the right combination of elements to beat on earnings this reporting cycle.

US Foods Holding Corp. USFD currently has an Earnings ESP of +2.68% and a Zacks Rank of 2. The company is likely to register top and bottom-line growth when it reports fourth-quarter 2024 numbers. The Zacks Consensus Estimate for US Foods Holding’s quarterly revenues is pegged at $9.47 billion, which suggests 6% growth from the prior-year quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for US Foods Holding’s quarterly earnings per share is pegged at 80 cents, indicating a 25% increase from the year-ago period. USFD delivered an earnings surprise of 3.7% in the last reported quarter.

The Coca-Cola Company KO currently has an Earnings ESP of +0.30% and a Zacks Rank of 3. The Zacks Consensus Estimate for quarterly revenues is pegged at $10.69 billion, which indicates a decrease of 1.5% from the figure reported in the prior-year quarter.

The Zacks Consensus Estimate for Coca-Cola’s fourth-quarter 2024 EPS is pegged at 51 cents, which implies a 4.1% increase year over year. KO has a trailing four-quarter earnings surprise of 3.9%, on average. 

Walmart WMT currently has an Earnings ESP of +0.15% and a Zacks Rank of 2. The company is likely to register top and bottom-line growth when it reports fourth-quarter fiscal 2025 numbers. The Zacks Consensus Estimate for Walmart’s quarterly revenues is pegged at $179.4 billion, which suggests an increase of 3.5% from the prior-year quarter.

The Zacks Consensus Estimate for Walmart’s quarterly earnings per share is pegged at 64 cents, indicating 6.7% growth from the year-ago period. WMT has a trailing four-quarter earnings surprise of 9.3%, on average.

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CocaCola Company (The) (KO) : Free Stock Analysis Report

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