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SCI · Analysis updated Nov 10, 2026, 6:00 PM ET
Why is Service Corporation International (SCI) stock moving?
SCI fell sharply after its Oct 28 third-quarter report. Q3 adjusted EPS of $0.97 missed the $0.99 estimate, though sales of $1.107B beat, and the company cut FY2026 adjusted EPS guidance to $3.94-$4.04 from $4.10-$4.30, below the $4.19 consensus. Q4 guidance of $1.10-$1.20 sat well under the $1.33 estimate. The stock closed at $82.33 on Oct 28, then opened at $72.76 on Oct 29, hit a low of $68.89 and closed at $75.17, down about 8.7% on roughly 4.8M shares, about 4-5 times the prior average volume near 1.0M. Since then the stock has traded in a $72.66-$78.43 range and closed at $74.36 on Nov 10, while daily volume has stayed elevated at 1.5-2.3M shares. JP Morgan kept its Overweight rating and cut its target to $95, still well above the current price. The company declared a $0.36 quarterly dividend, about a 1.9% yield at the current price, and extended five executives' employment agreements through Dec 31, 2027. A law firm announced an investigation on Nov 9 after the guidance cut; it is a notice rather than a court action. The data provided does not include multi-year fundamentals, so the longer-term view depends mainly on whether 2027 earnings can recover from the weaker Q4 outlook.
News behind the analysis
- Bronstein, Gewirtz & Grossman, LLC Investigates Service Corporation InternationalA law firm announced an investigation into SCI following its third-quarter results and lowered earnings guidance. This is an investigation notice, not a court filing.
- Service Corporation International Extends Executive Employment Agreements and Announces Director RetirementFive named executives have employment agreements extended through December 31, 2027. Director Victor L. Lund plans to retire at the 2027 Annual Shareholder Meeting after 27 years of service.
- Service Corporation International Declares Quarterly Cash DividendSCI declared a quarterly cash dividend of $0.36 per share, payable to holders of record in December 2026. At the Nov 10 close of $74.36, that annualizes to a yield of about 1.9%.
- JP Morgan Maintains Overweight on Service Corp Intl, Lowers Price Target to $95JP Morgan kept its Overweight rating on SCI and lowered its price target to $95. The target sits well above the recent trading range near $73-$75.
- Service Corporation International Reports Third Quarter 2026 Financial ResultsSCI reported higher GAAP and adjusted earnings per share for the third quarter of 2026 compared with the same period in 2025. The company also updated its fourth-quarter outlook.
- Service Corp Intl Lowers FY2026 Adj EPS Guidance from $4.10-$4.30 to $3.94-$4.04 vs $4.19 EstSCI cut its full-year 2026 adjusted EPS guidance to $3.94-$4.04, below the $4.19 consensus estimate. The prior range was $4.10-$4.30.
- Service Corp Intl Sees Q4 Adj EPS $1.10-$1.20 vs $1.33 EstSCI guided fourth-quarter 2026 adjusted EPS to $1.10-$1.20, well below the $1.33 analyst estimate. This guidance drove the weaker full-year outlook.
- Service Corp Intl Q3 Adj. EPS $0.97 Misses $0.99 Estimate, Sales $1.107B Beat $1.101B EstimateSCI reported third-quarter adjusted EPS of $0.97, missing the $0.99 estimate, while sales of $1.107B beat the $1.101B estimate. The earnings miss and guidance cut drove the sharp price drop on Oct 29.
About Service Corporation International
Service Corporation International is North America's largest funeral home and cemetery operator, based in Houston. It runs about 1,490 funeral locations and 506 cemeteries across 44 states, Canada, DC and Puerto Rico (as of September 2026), mostly under the Dignity Memorial brand, and serves roughly 700,000 families a year.
How it makes money
Revenue comes from two segments. Funeral services, roughly 55–60% of revenue (approximate), cover funerals, cremations, caskets, urns and related merchandise, plus commissions earned from selling preneed funeral insurance policies. Cemeteries, roughly 40–45% (approximate), sell burial plots, mausoleum spaces, markers and interment services. A large share of cemetery property is sold in advance ('preneed'). SCI also manages large trust and insurance-backed portfolios that hold customers' prepaid funds. Total yearly revenue is about $4.3 billion (approximate).
What usually moves SCI
- Funeral call volumes and death rates
- Shift toward cremation and lower average spending per service
- Preneed cemetery property sales
- Returns on preneed trust investments and interest rates
- Earnings guidance changes, share buybacks and acquisitions
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