Service International Earnings: Here’s Why Investors are Not Excited Now

Service Corp. International (NYSE:SCI) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are down 0.13%.

Service Corp. International Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 15.79% to $0.22 in the quarter versus EPS of $0.19 in the year-earlier quarter.

Revenue: Rose 7.3% to $629.4 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Service Corp. International reported adjusted EPS income of $0.22 per share. By that measure, the company beat the mean analyst estimate of $0.2. It beat the average revenue estimate of $598.11 million.

Quoting Management: Tom Ryan, the Company’s President and Chief Executive Officer, commented on the fourth quarter of 2012 “We are very pleased with the solid operating performance of our business during the fourth quarter which capped-off an impressive 23% improvement in full-year EPS from continuing operations excluding special items. Strong cemetery sales production and an increase in funeral services performed drove earnings above the high-end of our expectations. This operating momentum, when combined with an expanding footprint and growing preneed backlog, creates an exciting opportunity to continue to grow the company into the future and to enhance shareholder value. Our successes could not have been achieved without the hard work and dedication of our 21,000 associates, and I thank them for their continued focus on delivering extraordinary service to our client families.”

Key Stats (on next page)…

Revenue increased 8.3% from $581.18 million in the previous quarter. EPS increased 15.79% from $0.19 in the previous quarter.

Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a profit of $0.23 and has not changed. For the current year, the average estimate is a profit of $0.77, which is the same with that ninety days ago.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)