Service Corporation International Just Beat EPS By 8.1%: Here's What Analysts Think Will Happen Next

Shareholders might have noticed that Service Corporation International (NYSE:SCI) filed its first-quarter result this time last week. The early response was not positive, with shares down 2.4% to US$76.55 in the past week. The result was positive overall - although revenues of US$1.1b were in line with what the analysts predicted, Service Corporation International surprised by delivering a statutory profit of US$0.98 per share, modestly greater than expected. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

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Following last week's earnings report, Service Corporation International's six analysts are forecasting 2025 revenues to be US$4.28b, approximately in line with the last 12 months. Statutory earnings per share are predicted to rise 2.9% to US$3.83. In the lead-up to this report, the analysts had been modelling revenues of US$4.28b and earnings per share (EPS) of US$3.86 in 2025. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

View our latest analysis for Service Corporation International

The analysts reconfirmed their price target of US$88.72, showing that the business is executing well and in line with expectations. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on Service Corporation International, with the most bullish analyst valuing it at US$98.00 and the most bearish at US$83.34 per share. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. We would highlight that Service Corporation International's revenue growth is expected to slow, with the forecast 2.2% annualised growth rate until the end of 2025 being well below the historical 4.0% p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 11% annually. Factoring in the forecast slowdown in growth, it seems obvious that Service Corporation International is also expected to grow slower than other industry participants.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. The consensus price target held steady at US$88.72, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on Service Corporation International. Long-term earnings power is much more important than next year's profits. We have forecasts for Service Corporation International going out to 2027, and you can see them free on our platform here.

And what about risks? Every company has them, and we've spotted 2 warning signs for Service Corporation International you should know about.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.