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

Carriage Services

Wed 21:43

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: ID:nGNX317nZ0

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.)