SCI expects $1.10-$1.20 Q4 2026 EPS as it targets preneed momentum despite weaker funeral volumes (NYSE:SCI)

Service Corporation International (SCI) reported Q3 revenue increases in funeral and cemetery services, with comparable funeral revenue up $19M and cemetery revenue up $19M. Gross profit rose slightly, but margins declined due to higher fixed costs and changes in sales compensation plans. SCI lowered its full-year EPS guidance to $3.99 from $4.20, citing volume and cost pressures.

Service Corp International (SCI) reported Q3 2026 pre-need sales growth mid- to high-single digits, while funeral volumes were flat to slightly up. CEO Ryan expects a return to long-term growth in 2027, citing positive trends and cost management. CFO Tanzberger attributed strong free cash flow to installment collections and pre-need cemetery sales. SCI completed four acquisitions and expects to meet its $75M-$125M target.

SCI reported Q3 revenue of $1.11 billion, slightly above estimates, and adjusted EPS of $0.97, missing expectations. Management lowered full-year EPS guidance to $1.15 at the midpoint. Cost inflation and lower funeral volumes impacted results, while pre-need sales and digital investments were highlighted as growth drivers. Operating margin improved to 22.8%.

SCI reported Q3 2026 earnings, citing lower funeral volumes and higher costs. Funeral revenue rose 3% YoY, but core volume declined 0.5%. Cemetery revenue increased 4%, with preneed sales up 5%. Full-year EPS guidance lowered to $3.99 from $4.20 due to weaker funeral volumes and higher expenses. Cemetery trust fund income and sales growth partially offset declines. Fixed costs and selling compensation rates increased, impacting gross profit.

Service Corporation International reported Q3 2026 revenue of $1.11B, up 4.6% YoY, and net income of $141.28M, up 20.3% YoY. EPS was $1.03. Funeral revenue rose 3.3%, while cemetery revenue increased 5.2%. Cremation reached 65.0% of services. SCI operates 1,491 funeral locations and 506 cemeteries.

Service Corporation International (SCI) shares fell 11.4% after the company revised its full-year adjusted earnings per share outlook to $3.94-$4.04, citing lower funeral volumes and higher costs. Q3 adjusted EPS rose 11% to $0.97, while revenue increased 5%. The stock is down 6.3% YTD and trades 17.5% below its 52-week high.