Service Corporation International (NYSE:SCI) Share Price Crosses Below 200 Day Moving Average Following Weak Earnings

Key Points

• SCI shares fell below their 200-day moving average after the company reported third-quarter EPS of $0.97, missing the $0.99 consensus estimate, despite revenue rising 4.6% year over year to $1.11 billion.
• Management cut its full-year 2026 earnings guidance and issued a weak fourth-quarter outlook, citing lower funeral volumes and higher costs that pressured profitability.
• The company maintained its quarterly dividend at $0.36 per share, equivalent to a 1.9% yield, while analysts remained broadly positive with a consensus “Buy” rating and a $100.67 price target.

Service Corporation International (NYSE:SCI - Get Free Report)'s share price crossed below its 200-day moving average during trading on Thursday following a weaker than expected earnings announcement. The stock has a 200-day moving average of $79.99 and traded as low as $68.89. Service Corporation International shares last traded at $75.0750, with a volume of 4,767,793 shares.

The company reported $0.97 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.99 by ($0.02). Service Corporation International had a net margin of 12.70% and a return on equity of 34.90%. The business had revenue of $1.11 billion during the quarter, compared to the consensus estimate of $1.10 billion. During the same quarter last year, the company earned $0.87 EPS. The firm's revenue for the quarter was up 4.6% compared to the same quarter last year.

Service Corporation International Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Wednesday, September 30th. Shareholders of record on Tuesday, September 15th were issued a dividend of $0.36 per share. This represents a $1.44 dividend on an annualized basis and a yield of 1.9%. The ex-dividend date of this dividend was Tuesday, September 15th. Service Corporation International's payout ratio is presently 37.60%.

More Service Corporation International News

Here are the key news stories impacting Service Corporation International this week:

• Positive Sentiment: Third-quarter revenue increased approximately 5% year over year to $1.11 billion, exceeding analysts’ $1.10 billion estimate. Net income, operating cash flow and preneed sales production also improved, while the company continued returning capital through dividends and share repurchases. Service Corporation Q3 Earnings Miss Estimates, Revenues Rise 5% Y/Y
• Neutral Sentiment: Reported EPS rose from $0.87 a year earlier to $0.97, although the exact comparison varies by reporting measure across the coverage. The result still represented year-over-year growth, but it fell short of Wall Street expectations of roughly $0.98-$0.99. Service Corporation International Earnings Results
• Negative Sentiment: Third-quarter EPS missed estimates, indicating that revenue growth did not fully translate into profit growth. Higher costs pressured margins and contributed to the weaker earnings performance. Service Corp. Q3 Earnings and Revenues Miss Estimates
• Negative Sentiment: Management reduced its full-year 2026 earnings guidance and issued a weak fourth-quarter outlook, including adjusted EPS guidance of $1.10 to $1.20. The company cited lower funeral volumes and higher costs, raising concerns about demand and profitability heading into the next quarter. Service Shares Fall After Q3 EPS Miss, 2026 Guidance Cut

Wall Street Analysts Forecast Growth

A number of equities research analysts have recently issued reports on the stock. UBS Group increased their price target on shares of Service Corporation International from $93.00 to $105.00 and gave the stock a "buy" rating in a report on Friday, July 31st. Weiss Ratings raised shares of Service Corporation International from a "buy (b-)" rating to a "buy (b)" rating in a report on Wednesday, October 21st. Finally, Wall Street Zen raised shares of Service Corporation International from a "sell" rating to a "hold" rating in a report on Sunday, September 20th. Four equities research analysts have rated the stock with a Buy rating. According to data from MarketBeat, the company presently has an average rating of "Buy" and a consensus target price of $100.67.

Insider Buying and Selling at Service Corporation International

In other news, CEO Thomas Ryan sold 253,391 shares of Service Corporation International stock in a transaction dated Friday, July 31st. The stock was sold at an average price of $85.25, for a total transaction of $21,601,582.75. Following the completion of the sale, the chief executive officer owned 1,006,212 shares in the company, valued at approximately $85,779,573. This trade represents a 20.12% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. 3.40% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Institutional investors have recently modified their holdings of the stock. Bank of New York Mellon Corp bought a new position in Service Corporation International in the second quarter worth approximately $80,965,000. Turtle Creek Asset Management Inc. lifted its holdings in Service Corporation International by 12.0% during the first quarter. Turtle Creek Asset Management Inc. now owns 1,161,496 shares of the company's stock worth $95,835,000 after buying an additional 124,151 shares during the period. Aureus Asset Management LLC lifted its holdings in Service Corporation International by 196.8% during the first quarter. Aureus Asset Management LLC now owns 112,192 shares of the company's stock worth $9,257,000 after buying an additional 74,387 shares during the period. Public Employees Retirement System of Ohio bought a new stake in Service Corporation International during the 2nd quarter valued at $2,904,000. Finally, Handelsbanken Fonder AB boosted its position in Service Corporation International by 3.8% during the 2nd quarter. Handelsbanken Fonder AB now owns 881,985 shares of the company's stock valued at $66,996,000 after acquiring an additional 32,137 shares in the last quarter. 85.53% of the stock is currently owned by institutional investors.

Service Corporation International Price Performance

The firm has a 50-day simple moving average of $80.14 and a 200-day simple moving average of $79.99. The firm has a market cap of $10.23 billion, a P/E ratio of 18.63, a PEG ratio of 1.83 and a beta of 0.81. The company has a current ratio of 0.53, a quick ratio of 0.49 and a debt-to-equity ratio of 3.32.

Service Corporation International Company Profile

Service Corporation International NYSE: SCI is a Houston-based provider of funeral, cremation and cemetery services. The company operates funeral homes, cemeteries and cremation facilities, offering arrangements for traditional funerals, memorial services and cremations, as well as cemetery property, burial services and related merchandise.

SCI serves families primarily in the United States and Canada through a network of locations and a portfolio of brands that includes Dignity Memorial, Funeraria del Angel and Neptune Society.

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