Service Corp. International Beats on Both Top and Bottom Lines
Service Corp. International (NYS: SCI) reported earnings on Feb. 12. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Service Corp. International beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased and GAAP earnings per share contracted significantly.
Gross margins increased, operating margins contracted, net margins contracted.
Service Corp. International tallied revenue of $629.4 million. The four analysts polled by S&P Capital IQ expected to see revenue of $598.1 million on the same basis. GAAP reported sales were 7.3% higher than the prior-year quarter's $586.6 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.22. The four earnings estimates compiled by S&P Capital IQ predicted $0.20 per share. GAAP EPS of $0.12 for Q4 were 40% lower than the prior-year quarter's $0.20 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 23.5%, 130 basis points better than the prior-year quarter. Operating margin was 16.9%, 80 basis points worse than the prior-year quarter. Net margin was 4.2%, 340 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $625.1 million. On the bottom line, the average EPS estimate is $0.23.
Next year's average estimate for revenue is $2.45 billion. The average EPS estimate is $0.84.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 188 members out of 206 rating the stock outperform, and 18 members rating it underperform. Among 49 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 48 give Service Corp. International a green thumbs-up, and one give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Service Corp. International is buy, with an average price target of $16.50.
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The article Service Corp. International Beats on Both Top and Bottom Lines originally appeared on Fool.com.Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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