Service Corp (SCI) Misses Q3 EPS by 1c, Revenues Beat; Narrows FY18 EPS Outlook, Remains Below Consensus

Service Corp (NYSE: SCI) reported Q3 EPS of $0.35, $0.01 worse than the analyst estimate of $0.36. Revenue for the quarter came in at $778.8 million versus the consensus estimate of $762.6 million.

"We are pleased to report strong operating performance in the third quarter highlighted by producing mid-single digit percentage growth in revenue and double-digit percentage growth in operating profit. Revenue grew $47.5 million, or 6.5%, and operating profit grew $16.4 million, or 11%, quarter over quarter. This strong operating performance was partially offset by increases in adjusted general and administrative expenses for our long-term incentive compensation plan that is tied to increases in total shareholder return as we experienced a significant increase in our share price during the quarter compared to market indices.

We look forward to carrying our operating performance momentum into the fourth quarter and finishing the year strong. We are narrowing the range of our full year guidance for adjusted earnings per share to $1.77 to $1.85 per share and are confirming the midpoint of $595 million of our existing adjusted operating cash flow range. Our results could not have been achieved without the hard work and dedication of our entire team, and I thank all 23,000 associates for their efforts and continued focus on delivering extraordinary service to our client families. We believe our long-term growth strategy is on track as we continue to grow revenue, leverage our unparalleled scale, and deploy our capital wisely to enhance shareholder value."

GUIDANCE:

Service Corp sees FY2018 EPS of $1.77-$1.85, versus the consensus of $1.85.

For earnings history and earnings-related data on Service Corp (SCI) click here.

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