Loading...
•
Dec 31, 2021
Service Corp Intl Q4 2021 Earnings Report
Service Corp Intl reported Q4 2021 earnings with revenue growth and EPS exceeding expectations, driven by elevated funeral services, burials, and preneed sales.
Key Takeaways
Service Corporation International (SCI) reported strong Q4 2021 results, with revenue growing by 8% to $1,043 million and adjusted earnings per share increasing by $0.04 to $1.17. The company benefited from elevated levels of funeral services, burials, and preneed sales, while managing inflationary cost pressures. SCI invested $112 million in acquisitions and expressed pride in its team's performance during the COVID-19 pandemic.
Revenue grew $73 million, or 8%, over the prior year quarter to $1,043 million.
GAAP earnings per share were $1.24.
Adjusted earnings per share grew $0.04 over the prior year quarter to $1.17, which was higher than our expectations driven by higher than expected revenue and a reduced share count.
Comparable funeral preneed sales production grew $30 million, or 14%.
Revenue by Segment
Forward Guidance
SCI expects adjusted earnings per share for the full year 2022 to be in the range of $2.80 to $3.20, with a midpoint of $3.00. Net cash provided by operating activities is expected to be between $675 million and $725 million. Capital improvements and cemetery development expenditures are projected to be between $270 million and $290 million.
Positive Outlook
- Expectations for adjusted earnings per share for the full year of 2022 have improved from the $2.80 we provided last quarter on our earnings call to a midpoint of $3.00, primarily due to the continued impacts of the COVID-19 pandemic.
- Expect net cash provided by operating activities excluding special items and cash taxes to be $825 - $875 million.
- Expect capital improvements at existing locations and cemetery development expenditures to be $270 - $290 million
- Expect cash taxes in 2022 to be $150 million.
- SCI anticipates a trend of year-over-year growth as we approach an aging baby boomer cohort with a leaner and more technologically efficient and effective operating model.
Challenges Ahead
- The guidance provided below has a wider range than usual due to the continued uncertainty around the impact of the COVID-19 pandemic.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
Loading earnings performance data...
Loading earnings reaction data...