Service Corp Intl recently announced its quarterly earnings, reporting adjusted earnings per share of $0.79, exceeding analyst expectations. The company also shared that net cash provided by operating activities, excluding special items, amounted to $269 million. Despite missing the sales estimate for the quarter, CEO Tom Ryan expressed enthusiasm about the growth in funeral revenue stemming from a new marketing agreement with a preneed insurance provider launched during the period. Furthermore, he noted the stability in both funeral and cemetery gross profit compared to the previous year's third quarter.
Looking ahead, the company projected a fourth-quarter adjusted loss of $1.00-1.10 per share, a deviation from analysts' earlier forecast of 77 cents per share. Despite the mixed results, Service Corp Intl's shares saw a slight increase of 0.2% trading at $81.79 following the announcement. Post-earnings, several analysts revised their price targets for Service Corp Intl, indicating their outlook on the company's performance. Raymond James analyst, John Ransom, maintained an Outperform rating and raised the price target from $80 to $85. Similarly, Truist Securities analyst Tobey Sommer upheld a Buy recommendation and adjusted the price target from $84 to $92. These adjustments reflect the analysts' assessments post the earnings disclosure and provide insight into the market's sentiment towards Service Corp Intl's future outlook.