Service Corporation International SCI is likely to register top-and-bottom line when it reports third-quarter 2024 earnings on Oct. 30. The Zacks Consensus Estimate for revenues is pegged at $1.01 billion, suggesting an increase of 1.1% from the prior-year quarter’s reported figure. The consensus mark for third-quarter earnings has remained unchanged in the past 30 days at 79 cents per share, indicating a rise of 1.3% from the figure reported in the year-ago quarter. SCI has a trailing four-quarter earnings surprise of 3.1%, on average.
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Things to Consider Ahead of SCI’s Upcoming Results
Service Corporation has been gaining from increased Cemetery segment revenues. In the second quarter of 2024, core revenues in the particular segment increased by $6.9 million due to a $7.5 million rise in total recognized preneed revenues, which was driven by growth in recognized merchandise and service preneed revenues. The sustained revenue growth in the segment signals a positive trajectory for the company’s upcoming performance.
Service Corporation International Price, Consensus and EPS Surprise
Service Corporation International price-consensus-eps-surprise-chart | Service Corporation International Quote
However, the company has been bearing the brunt of weakness in the Funeral segment for a while. The trend continued in the second quarter, with total comparable funeral revenues declining 0.9%. The downside was caused by a fall in core funeral revenues and non-funeral home preneed sales revenues. Core revenues went down 1.4% due to a 2.7% drop in the number of core funeral services performed. The persistence of this trend, along with a high-cost environment, raises concerns.
That said, Service Corporation’s focus on constructing new funeral homes and expanding existing facilities has been enhancing its business. The company has been investing in high-return cemetery inventory development projects aimed at boosting future preneed sales. Funds have also been allocated toward maintaining and upgrading facilities and advancing digital systems and initiatives. Benefits from these endeavors are likely to have aided performance.
Earnings Whispers for SCI
Our proven model doesn’t conclusively predict an earnings beat for Service Corporation this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here.
Service Corporation carries a Zacks Rank #3 and it has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks With the Favorable Combination
Here are some companies worth considering, as our model shows that these have the correct combination to beat on earnings this time around.
Clorox CLX currently has an Earnings ESP of +2.41% and a Zacks Rank of 2. The company is likely to register top-and-bottom-line growth when it reports first-quarter fiscal 2025 numbers. The Zacks Consensus Estimate for Clorox’s quarterly revenues is pegged at $1.62 billion, which indicates an increase of 17.2% from the figure reported in the prior-year quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Clorox’s quarterly earnings of $1.36 per share indicates growth of 177.6% from the year-ago quarter’s levels. CLX has a trailing four-quarter earnings surprise of 122.9%, on average.
Colgate-Palmolive CL currently has an Earnings ESP of +0.96% and a Zacks Rank #3. The company is expected to register top-and-bottom-line growth when it reports third-quarter 2024 results. The Zacks Consensus Estimate for quarterly revenues is pegged at $5 billion, suggesting a rise of 1.9% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for quarterly earnings has remained unchanged at 88 cents per share in the past 30 days. The consensus mark for CL’s earnings indicates growth of 2.3% from the year-ago quarter’s reported number. CL has delivered an earnings surprise of 4.8%, on average, in the trailing four quarters.
Mondelez International MDLZ has an Earnings ESP of +0.80% and a Zacks Rank of 3 at present. MDLZ is likely to register top-and-bottom line growth when it releases second-quarter 2024 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $9.1 billion, implying a rise of 0.4% from that reported in the year-ago quarter.
The consensus estimate for Mondelez’s quarterly earnings has been unchanged in the past 30 days at 84 cents per share, indicating growth of 2.4% from the year-ago quarter’s reported number. MDLZ has a trailing four-quarter average earnings surprise of 7.8%.
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Today, See These 5 Potential Home Runs >>Colgate-Palmolive Company (CL) : Free Stock Analysis Report
The Clorox Company (CLX) : Free Stock Analysis Report
Mondelez International, Inc. (MDLZ) : Free Stock Analysis Report
Service Corporation International (SCI) : Free Stock Analysis Report
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