Loading...
•
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.
Service Corp Intl
Service Corp Intl
Service Corp Intl Revenue by Segment
Revenue by Segment
Total Funeral Revenue
CapyFin.comTotal Cemetery Revenue
CapyFin.com 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.
- Decline in velocity of contracts sold in cemetery segment.
Revenue & Expenses
Visualization of income flow from segment revenue to net income