Service International Earnings: Here’s Why the Stock is Rising 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 up 0.06%.

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Service Corp. International Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 40% to $0.28 in the quarter versus EPS of $0.20 in the year-earlier quarter.

Revenue: Rose 8.28% to $652.4 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Service Corp. International reported adjusted EPS income of $0.28 per share. By that measure, the company beat the mean analyst estimate of $0.22. It beat the average revenue estimate of $630.27 million.

Quoting Management: Tom Ryan, the Company’s President and Chief Executive Officer, commented on the first quarter of 2013:
“We are very proud of the operating performance of our businesses during the first quarter which delivered an impressive 40% improvement in EPS from continuing operations excluding special items. Strong preneed cemetery sales production and a meaningful increase in funeral services performed drove earnings to the high end of our expectations. On this strong performance, we anticipate results for the year trending toward the upper end of the earnings and cash flow guidance ranges previously provided, and we remain confident that our solid operating platform and healthy financial position will allow us to actively pursue our growth strategies throughout the year and continue our focus on increasing shareholder

Key Stats (on next page)…

Revenue increased 3.65% from $629.42 million in the previous quarter. EPS increased 27.27% from $0.22 in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $0.2 to a profit $0.21. For the current year, the average estimate has moved up from a profit of $0.84 to a profit of $0.87 over the last ninety days.

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