Earnings Review and Free Research Report: Service Corp.’s Q3 Bottom-line Topped Expectations
Research Desk Line-up: Weight Watchers Post Earnings Coverage
LONDON, UK / ACCESSWIRE / November 17, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on Service Corp. International (NYSE: SCI), which can be viewed by registering at http://protraderdaily.com/optin/?symbol=SCI, following the Company's disclosure of its financial results on October 25, 2017, for the third quarter fiscal 2017 (Q3 FY17). The Houston, Texas-based Company reported a 27% y-o-y growth in its adjusted earnings per share; outperforming market expectations. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member's account at:
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Get more of our free earnings reports coverage from other constituents of the Personal Services industry. Pro-TD has currently selected Weight Watchers International, Inc. (NYSE: WTW) for due-diligence and potential coverage as the Company announced on November 06, 2017, its financial results for Q3 2017 and also raised its full-year FY17 earnings guidance. Register for a free membership today, and be among the early birds that get access to our report on Weight Watchers when we publish it.
At Pro-TD, we make it our mission to bring you news that matter about the stock you follow. Today, our research desk covers a blog story on SCI; also brushing on WTW. With the links below you can directly download the report of your stock of interest free of charge at:
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Earnings Reviewed
For the three months ended on September 30, 2017, Service Corp. reported revenues of $731.35 million, which came in above the $721.47 million recorded at the end of Q3 FY16. However, revenues for the reported missed market forecasts of $736.7 million.
The funeral home and cemetery operator's net income attributable to common stockholders of $56.16 million, or $0.29 per diluted share, in Q3 FY17 compared to $47.73 million, or $0.24 per diluted share, in Q3 FY16. Excluding special items, the Company's net income was $63.0 million, or $0.33 per diluted share, for Q3 FY17, up from $51.6 million, or $0.26 per diluted share, in the same quarter last year. Meanwhile, Wall Street had expected adjusted net income of $0.26 per diluted share for Q3 FY17.
Operating Metrics
In the three months ended on September 30, 2017, the Company spent $581.64 million on costs and expenses compared to $580.72 million in Q3 FY16. The Company's operating profit improved during Q3 FY17 to $149.70 million from $140.75 million in the prior year same quarter.
During the reported quarter, general and administrative (G&A) expenses came in at $39.21 million versus $26.92 million in the last year quarter. The Company reported operating income of $109.06 million for Q3 FY17 versus $114.39 million in the previous year's comparable quarter.
Segment-Wise
The Company's Funeral segment's total revenue was $437.5 million compared to $445.5 million in last year's comparable quarter. The segment posted operating profit of $70.1 million, or 16.0% of the segment's revenues, in Q3 FY17 compared to $74.5 million, or 16.7% of the segment's revenues, in Q3 FY16. Furthermore, the Company performed 72,049 funeral services in Q3 FY17 at average revenues per service of $5,305 versus 72,680 funeral services at average revenues per service of $5,322 in the prior year's comparable quarter.
The Company's quarterly total revenues from its Cemetery segment rose to $293.8 million in Q3 FY17 from $276.0 million in Q3 FY16. Meanwhile, the segment's operating profit stood at $79.6 million, or 27.1% of the segment's revenues, in Q3 FY17 compared to $66.2 million, or 24.0% of the segment's revenues, in Q3 FY16.
Cash Flow & Balance Sheet
During the third quarter ended on September 30, 2017, Service Corp. generated $165.4 million in cash from operations versus $133.0 million in the third-quarter of fiscal 2016. The Company spent $56.3 million as capital expenditures, up from $48.0 million spent during the previous year's corresponding quarter.
Service Corp. had $267.96 million in cash and cash equivalents as on September 30, 2017, compared to compared to $194.99 million as on December 31, 2016. Furthermore, the Company's long-term debt increased to $3.29 billion on September 30, 2017, from $3.20 billion as on December 31, 2016.
Dividend
In a separate press release on November 08, 2017, the Company's Board of Directors announced a quarterly cash dividend of $0.15 per share of common stock. The quarterly cash dividend is payable on December 29, 2017, to shareholders of record at the close of business on December 15, 2017.
Outlook
The Company updated its outlook for FY17, it now expects adjusted EPS to be in the range of $1.48 to $1.54 compared to previously provided guidance range of $1.42 to $1.52. Service Corp.'s management has now projected adjusted operating cash flow for FY17 to be in the range of $485 million to $515 million.
Stock Performance
On Thursday, November 16, 2017, the stock closed the trading session at $35.60, climbing 2.27% from its previous closing price of $34.81. A total volume of 878.74 thousand shares have exchanged hands. Service Corp. International's stock price soared 3.94% in the last one month, 11.42% in the past six months, and 37.19% in the previous twelve months. Furthermore, since the start of the year, shares of the Company have surged 25.35%. The stock is trading at a PE ratio of 18.76 and has a dividend yield of 1.69%. The stock currently has a market cap of $6.79 billion.
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