Service Corp (NYSE: SCI) reported Q2 EPS of $0.11, $0.13 worse than the analyst estimate of $0.24. Revenue for the quarter came in at $820 million versus the consensus estimate of $708.31 million.

Second Quarter Highlights:

• GAAP earnings per share were $0.59.
• Adjusted earnings per share grew $0.11, or 23%, over the prior year quarter to $0.58.
• Net cash provided by operating activities increased $106 million, or 136%, aided by tax payment deferrals.
• Revenue grew $7.4 million over the prior year quarter.
• Comparable funeral gross profit grew 23.4% and margin expanded 480 basis points.
• Cemetery preneed sales grew $25.1 million, or 10.4%.

"Our world and our Company have been transformed in many ways due to the COVID-19 pandemic yet we have remained resilient and committed to meeting the needs of our client families. We've found creative ways to serve our customers safely by harnessing technology to hold virtual services and sales seminars, mastering the skills to work remotely, and learning that anything is possible with the solid foundation of our teams. We have continued to add measures to help ensure client families can safely visit our locations and celebrate the life of their loved ones.

Our preneed sales teams have continued to overcome social distancing obstacles in certain areas of the country by leveraging technology with customers who may prefer to purchase cemetery property and merchandise from the safety of their home or setting up outdoor pop-up tents to discuss pre-planning from a safe distance. As local governments began to reopen in the back half of the quarter, we experienced an increase in the velocity of our preneed cemetery sales.

As we look forward, we will continue to embrace the improvements we have made with our customers in using technology and virtual platforms. We believe these solutions have brought value and efficiency to the customer experience. I am confident that we can build on this experience to become an even stronger company."

GUIDANCE:

Service Corp sees FY2020 EPS of $1.78-$2.00, versus the consensus of $1.50.

For earnings history and earnings-related data on Service Corp (SCI) click here.