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Carriage Services Q3 adjusted and EBITDA miss estimates on additional trust taxes

By Reuters News


Overview

  • U.S. funeral and cemetery operator's Q3 revenue fell and missed analyst expectations

  • Adjusted EPS and adjusted EBITDA for Q3 also missed analyst expectations

  • Company cited weaker cemetery preneed sales and trust taxes for lower results


Outlook

  • Company lowers 2026 revenue outlook to $415 mln-$420 mln from $435 mln-$445 mln

  • Company cuts 2026 adjusted consolidated EBITDA forecast to $125 mln-$130 mln from $135 mln-$140 mln

  • Company trims 2026 adjusted diluted EPS guidance to $2.90-$3.05 from $3.35-$3.55


Result Drivers

  • FUNERAL SEGMENT GROWTH - Co said funeral contract volume rose 2.5% and average revenue per contract increased 1.9% in Q3

  • CEMETERY PRENEED WEAKNESS - Co said cemetery comparable revenue fell 7.8% due to lower preneed sales production

  • TRUST TAXES - Additional trust taxes from sale of certain MLP investments weighed on financial revenue and adjusted EBITDA


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Revenue

Miss

$100.30 mln

$109.66 mln (5 Analysts)

Q3 Adjusted EPS

Miss

$0.59

$0.81 (5 Analysts)

Q3 EPS

$0.56

Q3 Net Income

$8.90 mln

Q3 Adjusted EBITDA

Miss

$27.70 mln

$33.29 mln (5 Analysts)

Q3 Adjusted EBITDA Margin

27.60%


Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the personal services peer group is "buy"

  • Wall Street's median 12-month price target for Carriage Services Inc is $50.00, about 45.9% above its November 3 closing price of $34.26

  • The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 11 three months ago


Reuters Recommended Reads

  • Nov 3 - PACS Group Q3 revenue beats on higher occupancy rates

  • Nov 3 - Senior care provider InnovAge's Q1 revenue beats as participants increase

  • Nov 4 - CVS beats Q3 revenue, profit estimates, outlook raised; to split into two


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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