Why Service Corporation International Stock Was Climbing Today
Shares of Service Corporation International (NYSE: SCI), the largest provider of deathcare services in the U.S., such as funerals, cremations, and cemeteries, were gaining after the company delivered strong results in its third-quarter earnings report. As of 3:20 p.m. ET, the stock was up 10.5%.
Overall revenue and profits were down as the company faces difficult comparisons with earlier stages of the pandemic, but results still topped expectations. Revenue in the quarter fell 5.6% to $977.7 million, but that was still well ahead of estimates at $892.6 million. Comparable pre-need cemetery sales rose 5%, while comparable pre-need funeral sales rose 2%, showing the core business continues to grow.
On the bottom line, adjusted earnings per share fell from $1.16 in the quarter a year ago to $0.68, but that also easily beat estimates of $0.51. Management said that compared to Q3 2019, adjusted earnings per share (EPS) have grown by a compound annual growth rate of 22%, compared to expectations of 8%-12% growth.
Source Fool.com
