Earnings Analysis for SCI (2023-2024)
Revenue Analysis
Total and Operating Revenue: SCI has shown an upward trajectory in Total Revenue from approximately $1.02 billion in Q1 2023 to $1.05 billion in Q4 2023, then slightly dipping to $1.04 billion in Q1 2024. Similarly, Operating Revenue also increased from $954.7 million in Q1 2023 to $982.3 million in Q4 2023 before a slight decrease to $968.8 million in Q1 2024.
Gross Profit Margins: Gross Profit shows a consistent increase, with margins expanding from about $289.1 million in Q1 2023 to $287.6 million in Q4 2023, and peaking at $274.2 million in Q1 2024.
Cost Management
Cost of Revenue: Cost of Revenue has been relatively stable, ranging from $739.6 million in Q1 2023 to $771.2 million in subsequent quarters, indicating consistent cost management relative to revenue.
Operating Expense: Operating Expense has seen minor fluctuations, demonstrating effective expense management, from $44.2 million in Q1 2023 to approximately $41.3 million in Q1 2024.
Total Expenses: There has been a marginal increase in Total Expenses from $783.8 million in Q1 2023 to $812.5 million in Q1 2024, tracking closely with revenue changes.
Profitability Analysis
EBITDA: EBITDA improved slightly from $316.9 million in Q1 2023 to $328.7 million in Q4 2023 and adjusted slightly to $310.9 million in Q1 2024.
Operating Income: Operating Income has increased from $244.9 million in Q1 2023 to $242.5 million in Q4 2023, increasing further to $232.9 million in Q1 2024.
Pretax Income: SCI’s Pretax Income increased from $191.9 million in Q1 2023 to $179.8 million in Q4 2023, showing some variability with a readjustment to $170.3 million in Q1 2024.
Net Income: Net Income has been growing, showing improvements from $144.8 million in Q1 2023 to $138.4 million in Q4 2023, although slightly decreasing to $131.3 million in Q1 2024.
Cash Flow Indicators
Reconciled Depreciation: There is a general increase observed in the Reconciled Depreciation from $71.2 million in Q1 2023 to $76.2 million in Q1 2024, suggesting ongoing investment in assets.
Interest Expense: Interest Expenses have been fairly stable, showing little variation around the $60 million mark across analyzed periods, reflecting steady financing costs.
Taxation
Tax Rate: The Tax Rate for Calculations has hovered close to 0.24 across all periods, indicating stable tax conditions.
Tax Provision: The Tax Provision shows a consistent rise from $47.0 million in Q1 2023 to $39.0 million in Q1 2024.
Tax Effect of Unusual Items: The effects range from negative effects in the most recent periods to positive impacts earlier in the year, suggesting variance in non-recurring items.
Shareholder Metrics
Diluted and Basic EPS: Both Diluted and Basic EPS show growth over time, reflecting positively on earnings per share from $0.93 (Diluted) in Q1 2023 to $0.89 in Q1 2024.
Average Shares: There has been a decrease in the number of average shares, from 155.3 million shares (diluted) in Q1 2023 to 147.9 million in Q1 2024, indicating potential share buybacks or other capital return measures.
Net Income Available to Common Stockholders: This metric has seen a slight decline from $144.8 million in Q1 2023 to $131.3 million in Q1 2024.
Conclusion
SCI has demonstrated resilience with generally increasing revenue and controlled costs, resulting in stable profit margins. The company shows effective management of assets through consistent depreciation and stable interest expenses. Tax rates and provisions have been managed well amidst slight fluctuations in net income. Shareholder metrics indicate effective capital maneuvers with EPS improvements despite reduced average share counts, benefiting shareholders. Overall, the outlook remains positive, with recommendations for continued monitoring of cost management and potential exploitation of market opportunities to maximize shareholder returns.
Appendices
(Supporting data tables and calculations are provided in a detailed structured format as part of the comprehensive report deliverables in an official document.)