Service Corp. reports Q2 adjusted EPS 79c, consensus 87c

Reports Q2 revenue $1.034B, consensus $1.03B. Comparable core funeral sales average grew 1.3% in the current quarter. CEO Tom Ryan said, “Today we reported adjusted earnings per share of $0.79 and net cash provided by operating activities excluding special items of $220 million. Revenue grew $21 million due in part to the performance of the cemetery segment, resulting in slight growth in margins over the prior year quarter. During the latter part of the quarter, we experienced a higher than anticipated decline in funeral services performed, which in light of our high fixed cost structure, impacted our quarterly performance. On a positive note, we generated strong cash flow from operations that met expectations, which allowed us to reinvest and grow our business, as well as return capital to shareholders, through share repurchases and dividends during the quarter. We believe our long-term growth strategy is on track as we continue to grow revenue, leverage our unparalleled scale, and allocate our capital wisely to enhance shareholder value. I would like to thank our 25,000 associates for their dedicated service to our client families.”