Service Corp (NYSE: SCI) reported Q3 EPS of $0.42, $0.01 better than the analyst estimate of $0.41. Revenue for the quarter came in at $918.2 million versus the consensus estimate of $797.23 million.

Third Quarter Highlights:

• Revenue grew $149 million over the prior year quarter to $918 million.
• GAAP earnings per share were $0.72.
• Adjusted earnings per share grew $0.42 over the prior year quarter to $0.79.
• Cemetery preneed sales grew $95 million, or 47%.
• Comparable funeral gross profit grew 63% and margin expanded 750 basis points.
• Comparable cemetery gross profit grew 64% and margin expanded 740 basis points.

Tom Ryan, the Company's President, Chairman, and Chief Executive Officer, commented on COVID-19 and third quarter results:

"As our society continues to navigate through the doubt, fears, and uncertainty surrounding COVID-19, our dedicated team of 25,000 associates continues to display tremendous courage and resolve. Our team has continued to meet our customer's desires by delivering exemplary service in spite of increased workloads and activity, leveraging technology for social distancing, and providing a safe environment for our customers to grieve, celebrate the life of a loved one or make future plans.

Today we are reporting adjusted earnings per share of $0.79, a $0.42 increase over the prior year quarter as the impact of COVID-19 has increased the number of funeral services performed as well as the number of burials in our cemeteries. As community restrictions lifted over the last few months, we have experienced unprecedented growth in our preneed cemetery sales as well as a significant improvement in the number of families who are desiring memorial services. We view this as further evidence that a considerable number of our customers continue to value what our team does best, which is helping our client families gain closure and healing through the process of grieving, remembrance, and celebration.

We will provide further commentary regarding guidance for the remainder of the year as well as our preliminary expectations on 2021 financial performance on our conference call scheduled for Thursday, October 29th at 8 a.m. Central Time."

GUIDANCE:

Service Corp sees FY2020 EPS of $2.50-$2.75, versus the consensus of $1.95.

The guidance provided below has a wider range than usual for the three month period due to the continued uncertainty around the impact of the COVID-19 pandemic. This revised outlook assumes that the impact of COVID-19 continues throughout the fourth quarter. Additionally, our outlook for net cash provided by operating activities excluding special items reflects an estimated $40 million of payroll tax payments that would have been paid in 2020, but are being deferred until 2021 and 2022 as allowed under the CARES Act.

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