Funeral services company Service International (NYSE: SCI) will be reporting earnings this Wednesday after the bell. Here’s what you need to know.
Service International met analysts’ revenue expectations last quarter, reporting revenues of $1.10 billion, up 2.1% year on year. It was a mixed quarter for the company, with full-year EPS guidance meeting analysts’ expectations but a significant miss of analysts’ EPS estimates. It reported 93,686 funeral services performed, down 4.3% year on year.
Is Service International a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Service International’s revenue to grow 1.7% year on year, slowing from the 3% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Service International has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Service International’s peers in the consumer discretionary segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Pool delivered year-on-year revenue growth of 2.2%, meeting analysts’ expectations, and AMC Entertainment reported revenues up 14.2%, topping estimates by 8.7%. Pool traded down 6.3% following the results while AMC Entertainment was up 13.4%.
Read our full analysis of Pool’s results here and AMC Entertainment’s results here.
In the last year or so, investors have shifted their focus from one macro dynamic to the next (AI disintermediation and AI investment to geopolitical conflict, interest rates, and the health of the wider economy). While some of the consumer discretionary stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 2% on average over the last month. Service International is up 8.2% during the same time and is heading into earnings with an average analyst price target of $96.33 (compared to the current share price of $82.80).
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