Service Corporation Q2 beats estimates on higher prices; narrows FY profit view

Overview

• US deathcare provider's Q2 revenue rose 4% yr/yr, beating analyst expectations

• Adjusted EPS for Q2 beat analyst expectations

• Company confirmed 2026 adjusted EPS guidance midpoint and raised cash flow outlook

Outlook

• Service Corporation confirms 2026 adj EPS guidance midpoint at $4.20, narrows range to $4.10-$4.30

• Company raises 2026 cash flow guidance midpoint by $50 mln to $1,085 mln

• Service Corporation increases 2026 maintenance capital expenditures guidance to $335 mln

Result Drivers

• FUNERAL SEGMENT PRICING - Higher average revenue per funeral service offset a decline in services performed, driven by consumer preferences for enhanced offerings and increased trust fund income

• CEMETERY PRENEED GROWTH - Higher recognized preneed merchandise and service revenue, along with increased trust fund income, drove cemetery revenue growth

• OPERATING CASH FLOW - Increased operating cash flow was primarily due to reduced cash taxes and strong preneed cemetery sales receipts

Company press release: ID:nPn6fQCFwa

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 7 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the personal services peer group is "buy"

• Wall Street's median 12-month price target for Service Corporation International is $95.00, about 11.8% above its July 28 closing price of $84.98

• The stock recently traded at 19 times the next 12-month earnings vs. a P/E of 19 three months ago

Reuters Recommended Reads

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)