Funeral services company Carriage Services (NYSE:CSV) will be announcing earnings results tomorrow after market close. Here’s what investors should know.
Carriage Services beat analysts’ revenue expectations by 8.1% last quarter, reporting revenues of $100.7 million, up 11.3% year on year. It was a very strong quarter for the company, with a solid beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.
Is Carriage Services a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Carriage Services’s revenue to decline 2.1% year on year to $96.72 million, a reversal from the 5.2% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.51 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Carriage Services has only missed Wall Street’s revenue estimates once over the last two years, exceeding top-line expectations by 4.2% on average.
Looking at Carriage Services’s peers in the specialized consumer services segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Pool’s revenues decreased 1.6% year on year, beating analysts’ expectations by 2.4%, and LKQ reported a revenue decline of 4.1%, falling short of estimates by 2%. Pool’s stock price was unchanged after the results, while LKQ was up 2.8%.
Read our full analysis of Pool’s results here and LKQ’s results here.
Valuation multiples for many growth stocks have not yet reverted to their early 2021 highs, but the market has been optimistic as of late due to a soft landing. This is an economic situation where rate hikes successfully quelled inflation but did not send the economy into a recession. Furthermore, recent rate cuts and Donald Trump's triumph in the 2024 Presidential election have been tailwinds for the market, and while some of the specialized consumer services stocks have shown solid performance, the group has generally underperformed, with share prices down 3.3% on average over the last month. Carriage Services is up 1.3% during the same time and is heading into earnings with an average analyst price target of $50.75 (compared to the current share price of $40.33).
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