Service Corporation International SCI is likely to witness top-and bottom-line growth when it reports third-quarter 2026 earnings on Oct. 28. The Zacks Consensus Estimate for revenues is pegged at $1.1 billion, indicating a 5% increase from the year-ago reported number.
The consensus mark for earnings has remained unchanged over the past 30 days at 98 cents a share, which suggests 12.6% growth from the year-ago period’s figure. SCI has a trailing four-quarter surprise of 0.7%, on average.
Service Corporation International Price, Consensus and EPS Surprise
Service Corporation International price-consensus-eps-surprise-chart | Service Corporation International Quote
Factors Likely to Influence SCI’s Upcoming Results
Service Corporation’s third-quarter results are likely to benefit from improving funeral volume trends and higher average revenue per service. On its last earnings call, management indicated that July funeral volumes were approximately flat year over year, suggesting stabilization. Revenues from maturing preneed contracts may have provided additional support.
The cemetery segment is likely to have benefited from strong preneed sales momentum. Management expects mid-to-high-single-digit growth in cemetery preneed sales production during the second half, primarily driven by core sales. Improved sales effectiveness, preneed seminars and the July expansion of cemetery offerings to cremation customers may have supported performance.
SCI’s profitability may have gained from the recognition of deferred, higher-margin cemetery property sales and trust fund income. Funeral margins are likely to have benefited from easing accounting-related pressures associated with insurance-funded preneed contracts and selling compensation changes. Disciplined cost management is likely to have provided additional support.
However, lingering funeral volume softness, rising cremation penetration and the timing of cemetery revenue recognition could have weighed on performance.
Earnings Whispers for SCI
Our proven model predicts an earnings beat for Service Corporation this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is the case here.
Service Corporation currently carries a Zacks Rank #3 and has an Earnings ESP of +0.76%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Other Stocks With the Favorable Combination
Here are some other companies worth considering, as our model shows that these also have the right combination of elements to beat on earnings this reporting cycle.
Altria Group, Inc. MO currently has an Earnings ESP of +0.26% and a Zacks Rank #2. The consensus estimate for quarterly revenues is pegged at $5.3 billion, which indicates an improvement of about 1% from the figure reported in the prior-year quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Altria’s upcoming quarter’s EPS is pegged at $1.51, which calls for 4.1% growth from the figure reported in the prior-year quarter. MO delivered a trailing four-quarter earnings surprise of 1.3%, on average.
Sysco Corporation SYY currently has an Earnings ESP of +2.46% and a Zacks Rank of 3. The consensus estimate for the quarterly revenues is pinned at $22.2 billion, which suggests 4.9% growth from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for Sysco’s upcoming quarter’s EPS is pegged at $1.17, which calls for a 1.7% increase from the year-ago period’s figure. SYY delivered a trailing four-quarter earnings surprise of nearly 1%, on average.
Archer-Daniels-Midland Company ADM currently has an Earnings ESP of +18.48% and a Zacks Rank of 3. The Zacks Consensus Estimate for its upcoming quarter’s revenues is pegged at $22.7 billion, suggesting 11.3% growth from the figure reported in the prior-year quarter.
The consensus estimate for Archer-Daniels’ earnings is pegged at $1.44 per share, implying an increase of 56.5% from the year-ago quarter. ADM delivered a trailing four-quarter earnings surprise of 11.3%, on average.
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Service Corporation International (SCI): Free Stock Analysis Report
Altria Group, Inc. (MO): Free Stock Analysis Report
Archer Daniels Midland Company (ADM): Free Stock Analysis Report
Sysco Corporation (SYY): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).