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HOUSTON - Service Corporation International (NYSE:SCI), a prominent North American deathcare service provider, has declared a quarterly cash dividend of $0.30 per share. The dividend is scheduled for payment on September 30, 2024, to shareholders who are on record as of September 13, 2024.
Service Corporation International operates under the Dignity Memorial® brand and provides funeral, cemetery, and cremation services. As of June 30, 2024, the company manages 1,490 funeral service locations and 492 cemeteries across the United States and Canada.
In other recent news, Service Corporation International (SCI) reported a slight decrease in its adjusted earnings per share (EPS) for Q2 2024, marking $0.79, down from the prior year's figure. This decline was attributed to a 2.7% fall in funeral volumes due to a decrease in excess deaths and the impact of the COVID-19 pandemic. However, SCI maintains a positive outlook, projecting revenue and margin growth in the latter half of 2024 and a return to EPS growth in 2025.
The company's Q2 financial performance was partially offset by increased cemetery profits, with gross profits rising by $5 million. Despite the decline in funeral volumes, SCI reported an increase in adjusted operating cash flow by $62 million from the prior year, reaching $220 million.
Looking ahead, SCI expects growth in revenues and margins for both funeral and cemetery segments in the second half of 2024. For 2025, the company projects EPS growth towards the higher end of its historical annual guidance range of 8% to 12%. These recent developments indicate SCI's strategic approach to navigating the challenges within the deathcare industry and its commitment to future growth.
InvestingPro Insights
Service Corporation International (SCI) recently announced its quarterly dividend, signaling confidence in its financial stability and commitment to shareholder returns. Investors considering SCI's stock will find the following metrics and InvestingPro Tips particularly informative:
InvestingPro Data highlights that SCI's market capitalization stands at $10.76 billion, with a P/E ratio of 21.51. This valuation comes as the company has maintained a consistent revenue growth, posting a 2.21% increase in the last twelve months as of Q2 2024. Despite a modest uptick in revenue, the company's stock has experienced a significant decline over the past week, with a -8.7% one-week total return as of the latest data.
Two InvestingPro Tips offer additional insights into SCI's financial outlook:
- SCI has a longstanding history of rewarding its shareholders, having raised its dividend for 10 consecutive years and maintained payments for 20 consecutive years. This track record may provide some reassurance to income-focused investors.
- However, analysts have tempered expectations, with five analysts revising their earnings estimates downwards for the upcoming period. This could suggest potential headwinds or a conservative outlook on the company's near-term profitability.
For those looking to delve deeper into SCI's financials and future prospects, there are additional InvestingPro Tips available. These tips, which can be accessed through the InvestingPro platform, might offer further clarity on the company's performance and help investors make more informed decisions.
Service Corporation International's next earnings date is slated for October 30, 2024, which will be a key event for investors to assess the company's financial health and strategic direction.
It's worth noting that while past performance and dividend consistency are important, they do not guarantee future results. Investors should consider the company's comprehensive financial picture, including these InvestingPro Tips and metrics, before making investment decisions.
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