Service Corporation International (NYSE:SCI) Shares Gap Down on Disappointing Earnings

Shares of Service Corporation International (NYSE:SCI) gapped down before the market opened on Thursday following a weaker than expected earnings announcement. The stock had previously closed at $82.33, but opened at $72.76. Service Corporation International shares last traded at $72.6010, with a volume of 757,387 shares.

The company reported $0.97 earnings per share for the quarter, missing the consensus estimate of $0.99 by ($0.02). The company had revenue of $1.11 billion for the quarter, compared to the consensus estimate of $1.10 billion. Service Corporation International had a return on equity of 34.38% and a net margin of 12.30%. The business’s revenue was up 4.6% compared to the same quarter last year. During the same period in the prior year, the business earned $0.87 earnings per share.

Service Corporation International Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Wednesday, September 30th. Shareholders of record on Tuesday, September 15th were issued a $0.36 dividend. This represents a $1.44 annualized dividend and a yield of 2.0%. The ex-dividend date of this dividend was Tuesday, September 15th. Service Corporation International’s payout ratio is 37.60%.

More Service Corporation International News

Here are the key news stories impacting Service Corporation International this week:

• Positive Sentiment: Third-quarter revenue rose approximately 5% year over year to $1.107 billion, exceeding the $1.10 billion consensus estimate. Comparable funeral and cemetery preneed sales production increased 6% and 5%, respectively, supporting the company’s underlying demand trends. SCI Third-Quarter Revenue Report
• Positive Sentiment: Operating performance improved year over year: reported diluted EPS increased to $1.03 from $0.84, operating cash flow rose 18% to $296.8 million, and year-to-date dividends and share repurchases totaled $464 million. SCI also maintained its full-year adjusted operating cash-flow midpoint of $1.085 billion. SCI Third-Quarter Operating Results
• Neutral Sentiment: SCI issued fourth-quarter adjusted diluted EPS guidance of $1.10 to $1.20. The maintained cash-flow outlook provides some support, but investors are weighing it against the company’s broader full-year guidance update. SCI Updates Full-Year 2026 Guidance
• Negative Sentiment: Quarterly adjusted EPS was $0.97, below analyst expectations of roughly $0.98-$0.99, even though revenue beat estimates. The combination of the earnings shortfall and a reported reduction to full-year earnings guidance is the primary reason for the negative stock reaction. SCI Q3 Earnings and Revenue Report

Wall Street Analyst Weigh In

Several analysts have commented on the stock. Weiss Ratings upgraded shares of Service Corporation International from a “buy (b-)” rating to a “buy (b)” rating in a research report on Wednesday, October 21st. Wall Street Zen raised Service Corporation International from a “sell” rating to a “hold” rating in a research report on Sunday, September 20th. Finally, UBS Group increased their price target on Service Corporation International from $93.00 to $105.00 and gave the company a “buy” rating in a research report on Friday, July 31st. Four investment analysts have rated the stock with a Buy rating. According to data from MarketBeat.com, Service Corporation International has an average rating of “Buy” and a consensus price target of $100.67.

Insiders Place Their Bets

In other Service Corporation International news, CEO Thomas Ryan sold 253,391 shares of the firm’s stock in a transaction on Friday, July 31st. The shares were sold at an average price of $85.25, for a total value of $21,601,582.75. Following the completion of the sale, the chief executive officer directly owned 1,006,212 shares in the company, valued at approximately $85,779,573. This trade represents a 20.12% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. 3.40% of the stock is owned by corporate insiders.

Institutional Trading of Service Corporation International

Institutional investors have recently modified their holdings of the business. Peterson Wealth Services grew its stake in Service Corporation International by 10.5% in the 3rd quarter. Peterson Wealth Services now owns 17,011 shares of the company’s stock worth $1,295,000 after buying an additional 1,619 shares in the last quarter. Root Financial Partners LLC purchased a new position in Service Corporation International during the 3rd quarter valued at about $41,000. GAMMA Investing LLC grew its position in shares of Service Corporation International by 20.0% in the 3rd quarter. GAMMA Investing LLC now owns 3,204 shares of the company’s stock worth $244,000 after buying an additional 533 shares during the last quarter. Farther Finance Advisors LLC raised its holdings in Service Corporation International by 5.0% in the 3rd quarter. Farther Finance Advisors LLC now owns 7,527 shares of the company’s stock worth $573,000 after purchasing an additional 361 shares in the last quarter. Finally, CX Institutional raised its position in shares of Service Corporation International by 7.3% in the 3rd quarter. CX Institutional now owns 12,345 shares of the company’s stock worth $940,000 after acquiring an additional 838 shares in the last quarter. 85.53% of the stock is currently owned by hedge funds and other institutional investors.

Service Corporation International Trading Down 11.6%

The company has a quick ratio of 0.49, a current ratio of 0.53 and a debt-to-equity ratio of 3.32. The stock’s fifty day simple moving average is $80.31 and its two-hundred day simple moving average is $80.02. The firm has a market cap of $9.92 billion, a PE ratio of 19.03, a PEG ratio of 1.85 and a beta of 0.81.

About Service Corporation International

Service Corporation International (NYSE:SCI) is a Houston-based provider of funeral, cremation and cemetery services. The company operates funeral homes, cemeteries and cremation facilities, offering arrangements for traditional funerals, memorial services and cremations, as well as cemetery property, burial services and related merchandise.

SCI serves families primarily in the United States and Canada through a network of locations and a portfolio of brands that includes Dignity Memorial, Funeraria del Angel and Neptune Society.