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