Finance

Earnings season on its way: Zacks on Service Corp

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If you watched the stock market last week you would see that it bounced around a little bit.  That happens all the time dependent on world events and the business environment, but also four times per year we get in a period where public companies report the business results for the past three month period.  And, we are in that period right now.

Funeral Director Daily will follow those reports as they come out and the first company to report that makes up part of our Death Care Index (DCI) will be Service Corporation International (SCI).  They will report earnings on Wednesday, October 28.

In anticipation of that announcement, Zacks Research came out with this statement last week.  In essence, here is what Zacks predicts of Service Corporation International:

SCI is likely to report an increase in the top and bottom lines when it reports third-quarter 2020 numbers

Zacks looks for SCI to report Revenues at $801 million which is a 4.1% increase over what the company, according to E-Trade Financial, reported in the 3rd Quarter of 2019 — $769 million.

And, here is what Zack’s said of SCI and their operations:  “Service Corporation has been gaining on increased funerals performed due to the coronavirus-led deaths. Also, the company’s strong cost management has been aiding performance. In the last reported quarter, the bottom line was backed by increased gross profit stemming from greater funeral services performed in the core funeral services business on account of the pandemic, along with solid cost management. In its last earnings call, management said that it expects higher funeral services performed due to continued effects of the pandemic, especially in the early third quarter.”

Zacks also anticipates from SCI:

  1. Softer preneed sales due to social distancing rules
  2. “Headwinds” from lower average revenue per services
  3. Escalated costs associated with COVID-19

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