Service Corp. International Beats on Both Top and Bottom Lines

Service Corp. International (NYSE: SCI  ) reported earnings on Feb. 12. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Service Corp. International beat expectations on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue increased and GAAP earnings per share contracted significantly.

Gross margins increased, operating margins contracted, net margins contracted.

Revenue details
Service Corp. International tallied revenue of $629.4 million. The four analysts polled by S&P Capital IQ expected to see revenue of $598.1 million on the same basis. GAAP reported sales were 7.3% higher than the prior-year quarter's $586.6 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.22. The four earnings estimates compiled by S&P Capital IQ predicted $0.20 per share. GAAP EPS of $0.12 for Q4 were 40% lower than the prior-year quarter's $0.20 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 23.5%, 130 basis points better than the prior-year quarter. Operating margin was 16.9%, 80 basis points worse than the prior-year quarter. Net margin was 4.2%, 340 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $625.1 million. On the bottom line, the average EPS estimate is $0.23.

Next year's average estimate for revenue is $2.45 billion. The average EPS estimate is $0.84.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 188 members out of 206 rating the stock outperform, and 18 members rating it underperform. Among 49 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 48 give Service Corp. International a green thumbs-up, and one give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Service Corp. International is buy, with an average price target of $16.50.

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