Service Corp slightly misses Q4 revenue estimates

Reuters
Feb 12
Service Corp slightly misses Q4 revenue estimates

Overview

  • Deathcare provider's Q4 revenue slightly missed analyst expectations

  • Adjusted EPS for Q4 missed analyst expectations

  • Company projects 2026 earnings growth within long-term target range

Outlook

  • Company expects 2026 diluted EPS excluding special items of $4.05 - $4.35

  • Company projects 2026 net cash provided by operating activities at $1,125 - $1,185 mln

  • Service Corporation plans $325 mln in capital expenditures for 2026

Result Drivers

  • PRENEED SALES GROWTH - Comparable preneed funeral sales increased by 11% and preneed cemetery sales grew by 2% over Q4 2024, contributing to revenue growth

  • CAPITAL DEPLOYMENT - Strategic acquisitions and real estate investments supported growth, with $101 mln spent on acquisitions and $79 mln on real estate and construction

  • GROSS PROFIT EXPANSION - Gross profit increased by 2% in Q4 2025, driven by strong performance across both operating segments

Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q4 Revenue

Slight Miss*

$1.11 bln

$1.12 bln (6 Analysts)

Q4 Adjusted EPS

Miss

$1.14

$1.15 (6 Analysts)

Q4 EPS

$1.13

Q4 Net Income

$159.40 mln

Q4 Operating Income

$275.60 mln

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 7 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the personal services peer group is "buy"

  • Wall Street's median 12-month price target for Service Corporation International is $94.50, about 13.3% above its February 10 closing price of $83.39

  • The stock recently traded at 20 times the next 12-month earnings vs. a P/E of 20 three months ago

Press Release: ID:nPn4xvRk5a

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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