Service Corp. cuts FY23 EPS $3.40-$3.60 from $3.45-$3.75, consensus $3.53

The company said, “Our revised guidance ranges for 2023 detailed below have been updated to reflect our outlook for the rest of the year as a result of the inflationary environment and the related impact on consumer discretionary spending as well as the impact of higher than expected interest rates… For these reasons, we are revising our full-year adjusted earnings per share guidance to $3.40 to $3.60 from $3.45 to $3.75. We are also raising our adjusted operating cash flow guidance to $830 million to $880 million from $740 million to $800 million which reflects the continued strength of our operating cash flow as well as an expected decrease in cash taxes. The decrease in cash taxes is related to a change in tax accounting method related to our cemetery segment, which will defer cash taxes into future years. Our outlook for net cash provided by operating activities also excludes special items relating to the payments of certain estimated legal charges of $64.6 million recognized in the fourth quarter of 2022.”