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Jun 30, 2023
Service Corp Intl Q2 2023 Earnings Report
Service Corporation International reported mixed results for Q2 2023, with revenue growth offset by inflationary pressures and revised full-year guidance.
Key Takeaways
Service Corporation International (SCI) announced its Q2 2023 financial results, revealing a slight revenue increase to just over $1.0 billion, but a decrease in adjusted earnings per share to $0.83. The company is adjusting its full-year adjusted earnings per share guidance due to inflationary pressures, while increasing its adjusted operating cash flow guidance due to a tax accounting method change.
Revenue increased by $22.6 million to exceed $1.0 billion.
GAAP earnings per share rose to $0.86, while adjusted earnings per share decreased slightly to $0.83.
Net cash from operating activities grew to $144.1 million, with $157 million excluding special items.
The company narrowed its full-year adjusted EPS guidance to $3.40-$3.60 and raised adjusted operating cash flow guidance to $830-$880 million.
Revenue by Segment
Forward Guidance
Service Corporation International revised its full-year adjusted earnings per share guidance to $3.40-$3.60, while raising its adjusted operating cash flow guidance to $830-$880 million.
Positive Outlook
- Strong demand for preneed cemetery sales from mid and high price tiered consumers.
- Strength of operating cash flow.
- Expected decrease in cash taxes due to a change in tax accounting method related to the cemetery segment.
- Continued strength of operating cash flow
- Decrease in cash taxes
Challenges Ahead
- Challenging inflationary environment impacting consumer discretionary spending.
- Softness from the more price-sensitive consumer due to inflation and economic uncertainty.
- Higher than expected interest rates.
- Inflationary employee-related costs.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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