Carriage Services (CSV) closed the last trading session at $45.19, gaining 6.4% over the past four weeks, but there could be plenty of upside left in the stock if short-term price targets set by Wall Street analysts are any guide. The mean price target of $60.25 indicates a 33.3% upside potential.The mean estimate comprises four short-term price targets with a standard deviation of $3.69. While the lowest estimate of $56.00 indicates a 23.9% increase from the current price level, the most optimistic analyst ...

Core Insights - Carriage Services, Inc. reported strong financial performance for Q4 and the full year 2025, with significant growth in both funeral and cemetery operations [3][4]. Financial Highlights - In Q4 2025, total funeral operating revenue increased by 9.6%, while total cemetery operating revenue grew by 18.4% [3]. - Operating income rose by 16.8%, and adjusted consolidated EBITDA increased by 11.0%, with an adjusted consolidated EBITDA margin of 30.8%, up 80 basis points year-over-year [3][4]. - For the full year 2025, GAAP diluted EPS grew nearly 55% to $3.25, and adjusted diluted EPS increased by 21% to $3.20 [6][4]. - Total revenue for the year reached $417.4 million, a 6.1% increase from 2024, driven by higher contract volumes and improved pricing discipline [4][15]. Operational Metrics - The company completed strategic acquisitions of two businesses generating over $15 million in annual revenue and divested non-core assets, resulting in a leverage ratio of 4.0x [4][6]. - Preneed cemetery sales production increased by 13.4% year-over-year, contributing to the overall revenue growth [4][6]. - The average price per preneed interment right sold was $5,643, up from $5,264 in the previous year [7]. Outlook for 2026 - The company projects total revenue between $440 million and $450 million, with adjusted consolidated EBITDA expected to be between $135 million and $140 million [10]. - Adjusted diluted EPS is forecasted to be in the range of $3.35 to $3.55, with adjusted free cash flow anticipated between $40 million and $50 million [10].

Core Viewpoint - Park Lawn Corporation has successfully acquired the assets of Vondel L. Smith & Sons Mortuaries and Crematoriums along with Heritage Burial Park at South Lakes, enhancing its presence in the Oklahoma City market [1] Group 1: Acquisition Details - The acquisition became effective on January 12, 2026 [1] - The assets acquired include substantially all of the operations of Vondel L. Smith & Sons Mortuaries and Crematoriums [1] - Heritage Burial Park at South Lakes is also part of the acquisition [1]

Financial Data and Key Metrics Changes - The company reported adjusted earnings per share (EPS) of $1.14 for Q4 2025, an 8% increase from $1.06 in the prior year [4] - For the full year 2025, adjusted EPS was $3.85, a 9% increase compared to $3.53 in 2024 [5] - The effective tax rate increased, which negatively impacted EPS growth by $0.06 for the year [5][6] Business Line Data and Key Metrics Changes - Comparable funeral revenues increased by $3 million, or less than 1%, in Q4 2025, with core funeral revenue up by $6 million, or just over 1% [6][7] - Non-funeral home revenue increased by over $2 million, primarily due to an 11% increase in average revenue per service [8] - Comparable cemetery revenue increased by $5 million, or about 1%, driven by an $8 million increase in other revenue [11] Market Data and Key Metrics Changes - The company experienced a decline in core funeral services performed by 1.9% in Q4 2025 [6] - For the full year 2025, comparable funeral volume declined less than 1% [7] - Pre-need cemetery sales production increased by about 2% in Q4 2025, with core sales accounting for a $13 million increase [12] Company Strategy and Development Direction - The company aims to grow pre-need cemetery sales production in the low to mid-single-digit percentage range for 2026, resulting in cemetery revenue growth of about 2%-5% [15] - The focus is on managing inflationary costs and leveraging scale to drive profit growth [15] - The company plans to continue returning capital to shareholders through dividends and share repurchase programs [28] Management's Comments on Operating Environment and Future Outlook - Management expects flat to slightly down funeral volume in 2026, with average revenue per case growing at inflationary rates [14] - The company anticipates a normalized EPS range of $4.05-$4.35 for 2026, reflecting 5%-13% growth [13] - Management expressed confidence in the momentum carried into 2026, particularly in pre-need sales and core customer engagement [14][38] Other Important Information - The company generated strong adjusted operating cash flow of $213 million in Q4 2025, exceeding guidance [18] - Capital investments for Q4 2025 totaled $174 million, with a full-year total of $508 million [20] - The company returned $107 million to shareholders in Q4 2025 through share repurchases and dividends [23] Q&A Session Summary Question: Can you break down your assumptions for cemetery pre-sales production growth for 2026? - Management indicated a slight increase of 2%-3% for large sales and a more robust increase for core sales, expressing confidence in momentum [33][34] Question: How are sales tracking so far this year, particularly in the Rose Hills location? - Management reported positive trends in pre-need cemetery and funeral sales, with a focus on improving lead conversion rates [35][38] Question: What are the plans for developing and selling premium cemetery inventory? - The company plans to invest in tiered inventory offerings to cater to different customer segments, leveraging existing cemetery capacity [67][69] Question: Can you discuss the drivers of lower than inflation expense growth? - Management attributed this to effective cost management strategies, including labor efficiency and supply chain improvements [56][58] Question: What is the outlook for perpetual care trust revenue in 2026? - The company expects continued strong performance in trust funds, with a typical market return model of about 7% [85][86]

Financial Data and Key Metrics Changes - The company reported adjusted earnings per share (EPS) of $1.14 for Q4 2025, an 8% increase from $1.06 in the prior year [4] - For the full year 2025, adjusted EPS was $3.85, a 9% increase compared to $3.53 in 2024 [5] - The effective tax rate increased, which negatively impacted EPS growth by $0.06 for the year [5][6] Business Line Data and Key Metrics Changes - Comparable funeral revenues increased by $3 million, or less than 1%, in Q4 2025, with core funeral revenue up by $6 million, or just over 1% [6] - Non-funeral home revenue increased by $3 million, primarily due to an 11% increase in average revenue per service [7] - Comparable cemetery revenue increased by $5 million, or about 1%, driven by an $8 million increase in other revenue [11] Market Data and Key Metrics Changes - The company experienced a decline in core funeral services performed by 1.9% in Q4 2025 [6] - For the full year 2025, comparable funeral volume declined less than 1% [7] - Pre-need cemetery sales production increased by $8 million, or about 2%, for Q4 2025 [12] Company Strategy and Development Direction - The company aims to grow pre-need cemetery sales production in the low to mid-single-digit percentage range for 2026 [15] - The strategy includes managing inflationary costs and expanding gross margin percentages by 30-60 basis points compared to 2025 [15] - The company is focused on enhancing customer experience through capital investments in funeral homes and cemeteries [20][22] Management's Comments on Operating Environment and Future Outlook - Management expects flat to slightly down funeral volume in 2026, with average revenue per case growing at inflationary rates [14] - The company anticipates a normalized EPS range of $4.05-$4.35 for 2026, reflecting 5%-13% growth [13] - Management expressed confidence in the momentum carried into 2026, particularly in pre-need sales and core customer engagement [14][38] Other Important Information - The company generated strong adjusted operating cash flow of $213 million in Q4 2025, exceeding guidance [18] - Capital investments for the year totaled $508 million, with $174 million invested in Q4 alone [20] - The company returned $645 million to shareholders in 2025 through share repurchases and dividends [24] Q&A Session Summary Question: Can you break down your assumptions for cemetery pre-sales production growth? - Management indicated a slight increase in large sales and a more robust increase in core sales for 2026, with confidence in momentum [33][34] Question: How are sales tracking in your Rose Hills location? - Management reported positive trends in pre-need cemetery and funeral sales, with a focus on improving lead conversion rates [35][38] Question: What are the opportunities for growing cemetery sales for cremation customers? - The company is piloting initiatives to enhance visibility and awareness for cremation customers, with plans to roll out more broadly [40] Question: What drove the better performance on G&A expenses? - Management explained that fluctuations in short-term and long-term compensation plans impacted G&A expenses, with expectations of $40-$42 million per quarter moving forward [44][45] Question: Can you discuss the dynamics driving GA revenue in the funeral segment? - Management noted that the introduction of a flex product with lower commission rates and higher cancellation rates impacted GA revenue [76][80]

Financial Data and Key Metrics Changes - For Q4 2025, the company reported adjusted earnings per share (EPS) of $1.14, an 8% increase from $1.06 in the prior year [4] - For the full year 2025, adjusted EPS was $3.85, a 9% increase compared to $3.53 in 2024 [5] - The company experienced solid increases in revenue, gross profit, and comparable margin percentages in both funeral and cemetery segments [5][6] Business Line Data and Key Metrics Changes - Comparable funeral revenues increased by $3 million, or less than 1%, with core funeral revenue up by $6 million, or just over 1% [6] - Non-funeral home revenue increased by $3 million, primarily due to an 11% increase in average revenue per service [7] - Comparable cemetery revenue increased by $5 million, or about 1%, driven by an $8 million increase in other revenue [12] Market Data and Key Metrics Changes - The company noted a decline in core funeral services performed by 1.9% for Q4 2025, while comparable funeral volume for the full year declined less than 1% [7] - The average revenue per service in the funeral segment grew by 3.2%, despite a modest increase in the cremation rate [6] - Pre-need cemetery sales production increased by $8 million, or about 2%, with core sales accounting for a $13 million increase [13] Company Strategy and Development Direction - The company anticipates a normalized EPS range of $4.05-$4.35 for 2026, indicating a growth of 5%-13% [14] - The strategy includes managing fixed costs below inflationary levels while focusing on productivity to drive profit growth [15] - The company plans to continue returning capital to shareholders through dividends and share repurchase programs [29] Management's Comments on Operating Environment and Future Outlook - Management expects flat to slightly down funeral volume in 2026, with average revenue per case growing at inflationary rates [15] - The company is optimistic about pre-need sales production growth in both core and SCI Direct businesses [16] - Management highlighted a strong financial position and liquidity, allowing for opportunistic investments in 2026 [30] Other Important Information - The company generated strong adjusted operating cash flow of $213 million in Q4 2025, exceeding guidance [20] - Capital investments for the quarter totaled $174 million, with a full-year total of $508 million [22] - The company returned $107 million to shareholders in Q4 2025 through share repurchases and dividends [24] Q&A Session Summary Question: Can you break down your assumptions for cemetery pre-sales production growth? - Management indicated a slight increase of 2%-3% for large sales and a more robust increase for core sales, expressing confidence in momentum heading into 2026 [34] Question: How are sales tracking in your Rose Hills location? - Management reported positive trends in pre-need cemetery and funeral sales, with a focus on improving lead conversion rates [36] Question: What are the opportunities for growing cemetery sales for cremation customers? - The company is piloting initiatives to enhance visibility and awareness for cremation customers, with plans to roll out these efforts across more markets [41] Question: Can you discuss the drivers of lower than inflation expense growth? - Management attributed this to effective supply chain management and labor efficiency initiatives, allowing for better cost control [56] Question: What is the outlook for perpetual care trust revenue? - The company expects continued strong performance in trust funds, with a typical market return modeled at around 7% [84]

Core Insights - Service Corp. (SCI) reported revenue of $1.11 billion for the quarter ended December 2025, reflecting a year-over-year increase of 1.7% [1] - Earnings per share (EPS) for the quarter was $1.14, up from $1.06 in the same quarter last year [1] - The reported revenue was slightly below the Zacks Consensus Estimate of $1.12 billion, resulting in a revenue surprise of -0.69% [1] - The company experienced an EPS surprise of -0.18%, with the consensus EPS estimate being $1.14 [1] Performance Metrics - Total comparable funeral average revenue per service was $5,880.00, slightly above the average estimate of $5,877.90 [4] - The number of funeral services performed was 89,117, which was lower than the estimated 89,910 [4] - Cemetery revenue was reported at $510.9 million, compared to the estimated $516.82 million, representing a year-over-year change of +1.1% [4] - Funeral revenue reached $600.6 million, slightly below the estimated $602.35 million, with a year-over-year increase of +2.2% [4] - Gross profit from funeral services was $126.2 million, below the average estimate of $132.55 million [4] - Gross profit from cemetery services was $185.5 million, exceeding the average estimate of $180.36 million [4] Stock Performance - Shares of Service Corp. have returned +4.4% over the past month, contrasting with a -0.3% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market in the near term [3]

Core Viewpoint - Service Corp. reported quarterly earnings of $1.14 per share, matching the Zacks Consensus Estimate, and showing an increase from $1.06 per share a year ago, with a slight earnings surprise of -0.18% [1] Financial Performance - The company posted revenues of $1.11 billion for the quarter ended December 2025, which was below the Zacks Consensus Estimate by 0.69%, and a slight increase from $1.09 billion year-over-year [2] - Over the last four quarters, Service Corp. has surpassed consensus EPS estimates three times and topped consensus revenue estimates three times as well [2] Stock Performance - Service Corp. shares have increased approximately 7% since the beginning of the year, outperforming the S&P 500's gain of 1.4% [3] - The current Zacks Rank for Service Corp. is 3 (Hold), indicating that the shares are expected to perform in line with the market in the near future [6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $1.05 on revenues of $1.11 billion, while for the current fiscal year, the estimate is $4.25 on revenues of $4.47 billion [7] - The trend of earnings estimate revisions for Service Corp. was mixed ahead of the earnings release, which could change following the recent report [6] Industry Context - The Funeral Services industry, to which Service Corp. belongs, is currently ranked in the bottom 7% of over 250 Zacks industries, indicating potential challenges ahead [8] - Carriage Services, another company in the same industry, is expected to report quarterly earnings of $0.80 per share, reflecting a year-over-year increase of 29% [9]

Core Insights - Service Corporation International (SCI) reported a strong financial performance for Q4 2025, with adjusted earnings per share (EPS) growing 8% year-over-year to $1.14 and a full-year adjusted EPS increase of 9% to $3.85 [1][2] - The company generated $966 million in adjusted operating cash flow for the full year, enabling strategic investments and returning $645 million to shareholders through dividends and share repurchases [1][2] - Looking ahead to 2026, SCI anticipates adjusted EPS growth within the long-term target range of 8% to 12% [2] Financial Performance - Q4 2025 revenue increased by $19 million, or 2%, to $1,111.5 million compared to Q4 2024, with full-year revenue rising by $123 million, or 3%, to $4,309.2 million [1][3] - Gross profit for Q4 2025 was $311.7 million, a 2% increase from Q4 2024, while full-year gross profit rose by $49 million, or 5%, to $1,140.1 million [1][3] - Net cash provided by operating activities decreased by $51.2 million to $212.9 million in Q4 2025, primarily due to higher cash interest and taxes [1][3] Segment Performance - Comparable preneed cemetery sales production grew by 2% in Q4 2025, with a full-year increase of $48 million, or 4% [1][5] - Comparable total funeral sales average increased by 3% in Q4 2025, while comparable preneed funeral sales production surged by 11% [1][5] - The company experienced a 0.9% increase in comparable cemetery revenue, driven by higher other revenue, despite a decline in core revenue [6] Capital Expenditures and Investments - In 2025, SCI invested approximately $101 million in acquisitions of 22 funeral homes and 2 cemeteries, alongside $79 million in real estate and new construction [1][2] - Total capital expenditures for 2025 amounted to $388.6 million, reflecting a $19.5 million increase from the previous year [6][7] Outlook for 2026 - The 2026 outlook for diluted EPS excluding special items is projected to be between $4.05 and $4.35, with net cash provided by operating activities expected to range from $1,005 million to $1,065 million [2][3] - Capital improvements at existing locations are budgeted at $135 million, with cemetery property development at $165 million [2][3]

Core Points - A Colorado funeral home owner, Jon Hallford, was sentenced to 40 years in state prison for storing 189 decomposing bodies and providing families with fake ashes [1][2][3] - The Hallfords' actions have led to significant emotional distress for the families involved, with many reporting nightmares and feelings of guilt [8][10] - The case has prompted changes to Colorado's funeral home regulations due to the lax oversight that allowed such abuses to occur [12] Sentencing and Charges - Jon Hallford received a 40-year sentence, while his former wife, Carie Hallford, is facing 25 to 35 years in prison [4] - Both Hallfords pleaded guilty to nearly 200 counts of corpse abuse and federal fraud charges, with Jon Hallford also receiving a 20-year sentence for defrauding the government out of nearly $900,000 [7] Financial Misconduct - The Hallfords charged over $1,200 per customer and spent lavishly on luxury items, including a GMC Yukon and an Infiniti worth over $120,000, as well as $31,000 in cryptocurrency [5][6] - Prosecutors highlighted that the money spent on luxury goods could have covered the cremation costs for all the bodies multiple times [6] Investigation Findings - Bodies were stored in a building in Penrose, Colorado, from 2019 to 2023, with investigators discovering them in deplorable conditions, including being stacked and covered in decomposition fluid [9] - Families received dry concrete instead of actual ashes, leading to a profound impact on their grieving process [10] Regulatory Changes - The case has led to a review and subsequent changes in Colorado's funeral home regulations, addressing the issues that allowed the Hallfords to operate without proper oversight [12]