Brf Sa Expected To Post Earnings Of 10 Cents A Share - Earnings

BRF BRFS is likely to register growth in top and bottom lines when it reports third-quarter 2024 earnings on Nov. 13. The Zacks Consensus Estimate for revenues is pegged at $2.90 billion, which indicates a 2.6% increase from the year-ago level. The consensus mark for quarterly earnings has remained unchanged in the past 30 days at 13 cents per share, indicating an improvement from a loss of 5 cents in the year-ago quarter.

BRF, which produces and slaughters poultry and pork livestock for the production, processing and sale of fresh meat, meat products, pasta, margarine, pet food and other products, delivered an earnings surprise of 57.1% in the last reported quarter.

Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.

BRF’s Upcoming Results: Factors to Consider

BRF has been reaping benefits from its successful transformation strategy, fueling growth across domestic and international markets. The increase in demand for BRF's products, particularly in the processed food categories, has been a key driver of this growth. Ongoing investments in brand development and enhanced commercial execution have also played a significant role in strengthening BRF's market position.

In addition, the company's focus on innovation and the expansion of value-added products is yielding positive results. The implementation of the BRF+ 2.0 program has led to greater operational efficiencies, further boosting profitability and supporting the company's continued growth trajectory. The continuation of these upsides bodes well for the to-be-reported quarter.

BRF S.A. Price and Consensus

BRF S.A. price-consensus-chart | BRF S.A. Quote

Earnings Whispers for BRF

Our proven model doesn’t conclusively predict an earnings beat for BRF this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

BRF carries a Zacks Rank #3 and has an Earnings ESP of -20.00%.

Some Stocks With Favorable Combination

Here are some companies worth considering, as our model shows that these have the correct combination to beat on earnings this time around.

CAVA Group, Inc. CAVA currently has an Earnings ESP of +3.38% and a Zacks Rank of 2 at present. The company is likely to register growth in top and bottom lines when it reports third-quarter 2024 results. The Zacks Consensus Estimate for CAVA’s quarterly revenues is pegged at $235.1 million, which indicates growth of 33.9% from the figure reported in the prior-year quarter.

You can see the complete list of today’s Zacks #1 Rank stocks here.

The consensus estimate for CAVA Group’s quarterly earnings has remained unchanged over the past 30 days at 11 cents per share. The figure indicates growth of 83.3% from the year-ago quarter’s number. CAVA delivered an average earnings surprise of 257.7% in the trailing four quarters.

Ollie's Bargain Outlet Holdings, Inc. OLLI currently has an Earnings ESP of +1.50% and a Zacks Rank of 3. OLLI's top line is anticipated to increase year over year when it reports third-quarter 2024 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $519 million, which implies 8.1% growth from the year-ago quarter’s reported figure.

The company is expected to register an increase in the bottom line. The consensus estimate for Ollie's Bargain’s third-quarter earnings is pegged at 57 cents per share, indicating 11.8% growth from the year-ago quarter. OLLI has a trailing four-quarter earnings surprise of 7.9%, on average.

Jack in the Box Inc. JACK has an Earnings ESP of +0.76% and a Zacks Rank of 3. The company is likely to register a top-line decline when it reports fourth-quarter fiscal 2024 results. The Zacks Consensus Estimate for JACK’s quarterly revenues is pegged at $357.9 million, which indicates a dip of 3.9% from the figure reported in the prior-year quarter.

The consensus estimate for Jack in the Box’s quarterly earnings has moved down by 3 cents over the past 30 days to $1.12 per share. The figure indicates growth of 2.8% from the year-ago quarter’s number. JACK delivered an average earnings surprise of 1.7% in the trailing four quarters.

Zacks Investment Research

MGP Ingredients, Inc. MGPI posted third-quarter 2024 results, wherein the top line met the Zacks Consensus Estimate, while the bottom line surpassed the same. However, the company’s sales and earnings decreased year over year.

The third-quarter performance is prompting strategic adjustments in response to softening trends in the American whiskey category and high barrel inventories. Plans for 2025 include lowering net aging whiskey put away, reducing whiskey production and optimizing the cost structure to address decreased production volumes, which are expected to significantly affect sales and profitability in the Distilling Solutions segment.

Despite these challenges, ongoing investments in the brand portfolio are anticipated to drive organic growth and strengthen the long-term competitive positioning of the brown goods business. Furthermore, stronger performance is expected in the Ingredient Solutions segment in 2025, even amid current transitory headwinds.

MGP Ingredients, Inc. Price, Consensus and EPS Surprise

MGP Ingredients, Inc. price-consensus-eps-surprise-chart | MGP Ingredients, Inc. Quote

MGPI’s Quarterly Performance: Key Insights

MGPI posted adjusted earnings of $1.29 per share, which surpassed the Zacks Consensus Estimate of $1.27. However, the bottom line decreased from $1.34 in the year-ago quarter.

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

Total sales of $161.5 million decreased 23.7% year over year. Excluding the impact of the Atchison distillery, total sales declined 14% year over year. This reflects lower sales in each of the three operating segments.

Gross profit was $65.8 million, down 10.4% year over year. We note that the adjusted gross margin increased 30 basis points (bps) year over year to 40.8%, mainly due to significant margin growth in the Branded Spirits segment.

Advertising and promotion expenses rose 1.5% year over year to $9.6 million. Corporate selling, general, and administrative (SG&A) expenses decreased 20.2% year over year to $17.2 million.

Adjusted EBITDA was $45.7 million, down 8.8% year over year. The company’s adjusted EBITDA margin increased 460 bps year over year to 28.3%.

MGP Ingredients’ Q3 Segmental Details

Sales for the Zacks Rank #5 (Strong Sell) company’s Distilling Solutions segment fell 36% year over year to $71.9 million. Excluding the impact of the Atchison distillery, the segment’s sales declined 18%, primarily due to a 22% drop in brown goods sales, which included lower sales of aged and new distillates. Reported segment gross profit decreased 14% year over year to $28.6 million.

Sales in the Branded Spirits segment decreased 6% year over year to $62.6 million, mainly due to a decline in sales from the mid and value-priced portfolio. However, premium plus sales increased 1% as the company continued to implement targeted initiatives in the American whiskey and tequila categories. Gross profit for Branded Spirits rose 12% to $32.4 million.

The Ingredient Solutions segment experienced an 18% decrease in sales, totaling $26.9 million, primarily due to the ongoing impact of a stronger U.S. dollar on its specialty protein sales as well as reduced sales volume of commodity wheat starches amid heightened domestic competition.

Gross profit fell 57.5% to $4.7 million. Excluding the effects of the Atchison distillery and the related intercompany credit for the waste starch slurry by-product, gross profit decreased to $4.7 million from $9.4 million in the third quarter of 2023.

MGPI’s Financial Health Snapshot

The company ended the reported quarter with cash and cash equivalents of $20.8 million, long-term debt (less of current maturities) of $87.8 million and total equity of $912.9 million.

MGP Ingredients’ 2024 Outlook

The company expects 2024 sales to be between $695 million and $705 million, following the closure of the Atchison distillery in December 2023. It reported total sales of $836.5 million in 2023. Adjusted EBITDA is projected to be in the range of $196- $200 million, which includes the addition of share-based compensation expenses.

MGPI anticipates adjusted earnings to be in the range of $5.55-$5.65 per share. The company reported adjusted earnings of $5.90 per share in 2023. Total capital expenditures for the full year are estimated at $78 million.

The stock has lost 44.8% in the past three months compared with the industry’s 0.5% decline.

Key Picks

Here, we have highlighted three better-ranked stocks in the broader consumer staple sector, namely BRF Brasil Foods SA BRFS, Vital Farms Inc. VITL and Ingredion Incorporated INGR.

BRF Brasil Foods, formerly Perdigao S.A., is a Brazil-based food company. It presently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

BRFS has a trailing four-quarter average earnings surprise of 73.8%. The Zacks Consensus Estimate for current financial-year earnings and sales indicates growth of 256.7% and 14.7%, respectively, from the year-ago reported numbers.

Vital Farms offers a range of produced pasture-raised foods. It sports a Zacks Rank of 1 at present.

The Zacks Consensus Estimate for Vital Farms’ current financial-year earnings and sales indicates growth of 88.1% and 27%, respectively, from the year-ago registered numbers. VITL has a trailing four-quarter average earnings surprise of 82.5%.

Ingredion is an ingredients solutions provider, specializing in nature-based sweeteners, starches and nutrition ingredients. The company currently carries a Zacks Rank #2 (Buy). INGR has a trailing four-quarter earnings surprise of 11%, on average.

The Zacks Consensus Estimate for INGR’s current financial-year earnings indicates growth of 6.7% from the year-ago reported number.

Zacks Investment Research

Here are three stocks with buy ranks and strong growth characteristics for investors to consider today November 1st:

BRF BRFS: This Brazil-based food company focused on the production and sale of poultry, pork, beef cuts, milk, dairy products, and processed food products, carries a Zacks Rank #1 (Strong Buy), and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 9.3% over the last 60 days.

BRF S.A. Price and Consensus

BRF S.A. price-consensus-chart | BRF S.A. Quote

BRF has a PEG ratio of 0.26 compared with 2.09 for the industry. The company possesses a Growth Score of A.

BRF S.A. PEG Ratio (TTM)

BRF S.A. peg-ratio-ttm | BRF S.A. Quote

The Greenbrier Companies GBX: This company which is a leading supplier of transportation equipment and services to the railroad and related industries, carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 18.2% over the last 60 days.

Greenbrier Companies, Inc. (The) Price and Consensus

Greenbrier Companies, Inc. (The) price-consensus-chart | Greenbrier Companies, Inc. (The) Quote

The Greenbrier Companies has a PEG ratio of 0.49 compared with 1.6 for the industry. The company possesses a Growth Score of A.

Greenbrier Companies, Inc. (The) PEG Ratio (TTM)

Greenbrier Companies, Inc. (The) peg-ratio-ttm | Greenbrier Companies, Inc. (The) Quote

ZIM Integrated Shipping Services ZIM: This company provides container shipping and related services, carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 2.7% over the last 60 days.

ZIM Integrated Shipping Services Ltd. Price and Consensus

ZIM Integrated Shipping Services Ltd. price-consensus-chart | ZIM Integrated Shipping Services Ltd. Quote

ZIM Integrated Shipping Services has a PEG ratio of 0.04 compared with 0.30 for the industry. The company possesses a Growth Score of B.

ZIM Integrated Shipping Services Ltd. PEG Ratio (TTM)

ZIM Integrated Shipping Services Ltd. peg-ratio-ttm | ZIM Integrated Shipping Services Ltd. Quote

See the full list of top ranked stocks here.

Learn more about the Growth score and how it is calculated here.

Zacks Investment Research

Kellanova K delivered third-quarter 2024 results, with both the top and bottom lines coming ahead of the Zacks Consensus Estimate and earnings increasing year over year. While sales declined year over year, the company saw an increase in organic sales. Kellanova’s robust third-quarter results underscore the success of its growth-focused and profitable portfolio strategy.

On Aug. 14, 2024, Kellanova unveiled a deal with Mars, Incorporated (a global leader in pet care, snacking, and food), per which Mars will acquire Kellanova for $83.50 per share in cash. The transaction is anticipated to close in the first half of 2025, subject to various approvals. Kellanova is not issuing any guidance due to its pending deal with Mars, Incorporated.

K’s Quarterly Performance: Key Insights

Kellanova reported adjusted earnings of 91 cents per share, which increased 18.2% year over year, driven by increased operating profit. On a currency-neutral basis, adjusted earnings per share (EPS) rose 19.5% to 92 cents. The bottom line surpassed the Zacks Consensus Estimate of 85 cents.

Kellanova Price, Consensus and EPS Surprise

Kellanova price-consensus-eps-surprise-chart | Kellanova Quote

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

The company recorded net sales of $3,233 million, which surpassed the Zacks Consensus Estimate of $3,154 million. However, the top line fell 0.7% year over year. The downside can be attributed to unfavorable currency movements, which offset the favorable price/mix and volume. Organic net sales (excluding currency impacts) grew 6%.

The company's impressive organic net sales growth was largely fueled by volume expansion and currency-driven price/mix gains in emerging markets. Developed markets also witnessed organic growth with volumes improving sequentially despite a slower-than-expected industry demand recovery. This, along with support from productivity gains and easing cost inflation, enabled Kellanova to enhance its profit margins.

Kellanova’s adjusted operating profit increased 16.1% to $441 million while rising 19.4% to $453 million on a currency-neutral basis.

Decoding Kellanova’s Segment-Wise Results

Sales in the North America segment amounted to $1,673 million, up 1.1% year over year and 1.2% on an organic basis due to improved pricing/mix, partly offset by lower volumes.

Revenues in the Europe segment totaled $616 million, up 7.2% year over year. Organic net sales rose 3.6%. Revenue growth initiatives and favorable currency translation contributed positively, though these gains were partially offset by a volume decline, which showed moderation compared to recent quarters.

Revenues in Latin America totaled $329 million, down 5.5% year over year due to currency headwinds, partly made up by favorable price/mix and volumes. Organic sales ascended 4.1%.

Revenues in the Asia Pacific and the Middle East & Africa segment totaled $657 million, down 10.2% year over year. Unfavorable foreign currency rates caused the downside. However, the favorable price/mix and volume growth were upsides. Organic sales jumped 21.6%.

Kellanova Stock: Other Updates

The company ended the reported quarter with cash and cash equivalents of $569 million, long-term debt of $5,051 million and total equity of $3,758 million.

Kellanova generated net cash from operating activities of $1,293 million for the year-to-date period. Capital expenditures amounted to $440 million, and free cash flow was $853 million during this time.

Shares of this Zacks Rank #2 (Buy) company have rallied 30% in the past three months compared with the industry’s growth of 10.8%.

Stocks to Consider

Freshpet FRPT manufactures, distributes and markets natural fresh meals and treats for dogs and cats. It currently sports a Zacks Rank of 1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for FRPT’s current financial-year sales and earnings indicates advancements of 26.1% and 202.9%, respectively, from the prior-year figures. Freshpet has a trailing four-quarter earnings surprise of 132.9%, on average.

BRF BRFS, which produces and slaughters poultry and pork for processing, production and sale of fresh meat, processed products, pasta, margarine, pet food and other products, currently sports a Zacks Rank #1. BRFS delivered a positive earnings surprise of 57.1% in the last reported quarter.

The Zacks Consensus Estimate for BRF’s current financial-year sales and earnings implies growth of 14.7% and 256.7%, respectively, from the year-ago reported numbers.

McCormick & Company, Inc. MKC is a leading manufacturer, marketer and distributor of spices, seasonings, specialty foods and flavors. It currently carries a Zacks Rank #2.

The Zacks Consensus Estimate for McCormick & Company’s current fiscal-year sales and earnings indicates advancements of 0.6% and 8.2%, respectively, from the year-ago reported figures. MKC has a trailing four-quarter earnings surprise of 13.8%, on average.

Zacks Investment Research

Altria Group Inc. MO posted third-quarter 2024 results, wherein the bottom line improved year over year and beat the Zacks Consensus Estimate, whereas revenues dipped due to the smokeable products segment. However, the smokeable products segment saw robust operating income growth, driven by Marlboro's strong performance. In the oral tobacco category, MST brands sustained profitability, and on! continued its upward momentum in the market.

Along with the earnings release, Altria has unveiled a new initiative, Optimize & Accelerate, aimed at modernizing processes to drive faster progress toward its Vision. This initiative is designed to enhance organizational speed, efficiency and effectiveness by consolidating tasks, rationalizing and regulating processes, expanding the use of generative AI and automation and outsourcing certain transactional activities. The initial phases of the initiative are projected to yield cumulative cost savings of at least $600 million over five years, which will be reinvested to support the Vision and 2028 Enterprise Goals.

MO’s Quarterly Performance: Key Insights

Adjusted earnings came in at $1.38 per share, which advanced 7.8% year over year and beat the Zacks Consensus Estimate of $1.36. Increased adjusted operating companies income (OCI) and lesser number of shares outstanding drove the bottom-line growth.

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

This Zacks Rank #4 (Sell) company posted net revenues of $6,259 million, which dipped 0.4% year over year. The downside can mainly be attributed to reduced net revenues in the smokeable products unit and the all other category, somewhat made up by increased net revenues across the oral tobacco products segment. Revenues, net of excise taxes, grew 1.3% to $5,344 million. The consensus mark stood at $5,288 million.

Altria Group, Inc. Price, Consensus and EPS Surprise

Altria Group, Inc. price-consensus-eps-surprise-chart | Altria Group, Inc. Quote

Decoding Altria’s Segment-Wise Results

Smokeable Products: Net revenues in the category fell 0.6% year over year to $5,540 million due to reduced shipment volume and increased promotional investments. These were somewhat offset by higher pricing. Revenues, net of excise taxes, rose 1.2%.

Domestic cigarette shipment volumes tumbled 8.6% due to the industry’s decline rate and retail share losses. The industry’s decline was a result of persistent discretionary income challenges on Adult Tobacco Consumers (“ATC”) and increases in illegitimate e-vapor products. Altria’s reported cigar shipment volumes dipped 1.6%.

Adjusted OCI in the segment jumped 7.1% to $2,935 million due to improved pricing and reduced selling, general and administrative (SG&A) costs. This was somewhat negated by reduced shipment volume, increased promotional investments and escalated per unit settlement charges. The adjusted OCI margins grew 3.5 percentage points to 63.1%.

Oral Tobacco Products: Net revenues in the segment rose 5.4% to $722 million. The upside can be attributed to improved pricing and an increased percentage of on! shipment volumes in comparison to MST. Revenues, net of excise taxes, grew 5.8%.

Domestic shipment volumes grew 1.2% due to the industry’s growth rate, calendar differences and other aspects. This was partly negated by retail share losses and trade inventory movements.

Adjusted OCI increased 2% to $464 million due to increased pricing, somewhat negated by a mix change, elevated SG&A costs and reduced shipment volume. Adjusted OCI margins contracted by 1.7 percentage points to 67.2%.

Altria Stock: Other Updates

Altria ended the quarter with cash and cash equivalents of $1,897 million, long-term debt of $23,570 million and a total stockholders’ deficit of $3,468 million.

In the third quarter, Altria repurchased 13.5 million shares for $680 million. Through the first nine months, the company bought back 67.6 million shares for $3.1 billion. As of Sept. 30, 2024, the company had shares worth $310 million remaining under its existing authorized $3.4 billion share buyback program.

Altria paid dividends worth $1.7 billion in the third quarter and $5.1 billion in the first nine months of 2024, respectively. In August 2024, management hiked its quarterly dividend by 4.1%. The company retained its progressive dividend target, expecting dividend per share growth in mid-single digits annually through 2028.

What to Expect From MO in 2024?

For 2024, MO envisions adjusted earnings per share (EPS) in the range of $5.07-$5.15, which suggests 2.5-4% growth from the $4.95 recorded in 2023. Management expects the bottom-line growth to be skewed toward the second half of 2024. The guidance includes the impact of two extra shipping days in 2024. Also, the guidance considers the limited effect on combustible and e-vapor product volumes from the enforcement initiatives in the illicit e-vapor market.

As the external landscape remains dynamic, Altria continues assessing economic factors like inflation, ATC dynamics (such as purchasing patterns and the adoption of smoke-free products), illegal e-vapor enforcement and regulatory developments.

The bottom-line view also considers planned investments associated with enhanced smoke-free product research, development and marketplace activities to support MO’s smoke-free products.

For 2024, Altria expects capital expenditures of $125-$175 million.

Shares of MO have risen 1% in the past three months compared with the industry’s 5.4% growth.

Stocks to Consider

BRF BRFS, which produces and slaughters poultry and pork for processing, production and sale of fresh meat, processed products, pasta, margarine, pet food and other products, currently sports a Zacks Rank #1 (Strong Buy). BRFS delivered a positive earnings surprise of 57.1% in the last reported quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for BRF’s current financial-year sales and earnings implies growth of 14.7% and 256.7%, respectively, from the year-ago reported numbers.

McCormick & Company, Inc. MKC is a leading manufacturer, marketer and distributor of spices, seasonings, specialty foods and flavors. It currently sports a Zacks Rank #1.

The Zacks Consensus Estimate for McCormick & Company’s current fiscal-year sales and earnings indicates advancements of 0.6% and 8.2%, respectively, from the year-ago reported figures. MKC has a trailing four-quarter earnings surprise of 13.8%, on average.

Tobacco behemoth Philip Morris International PM currently carries a Zacks Rank of 2 (Buy).

The Zacks Consensus Estimate for PM’s current financial-year sales and earnings indicates advancements of 6.7% and 8.3%, respectively, from the prior-year figures. Philip Morris has a trailing four-quarter earnings surprise of 1.9%, on average.

Zacks Investment Research

Service Corporation International SCI posted third-quarter 2024 results, wherein the top and bottom lines increased year over year.

Management is encouraged by the favorable impact on funeral revenues resulting from its new marketing partnership with a preferred preneed insurance provider, which was launched in the third quarter. Both funeral and cemetery gross profits remained relatively stable year over year, with modest revenue improvement reflecting the company’s ongoing focus on fixed cost management.

The company also remained very proactive on the acquisition front in the quarter, with strategic additions in key metropolitan markets. The company invested $123 million to acquire 10 funeral homes and two cemeteries, including one combination location. An additional $31 million was allocated for real estate transactions to expand funeral home and cemetery locations.

For 2025, the company plans to return to the high end of its long-term growth target of 8-12%. Management remains committed to its growth strategy, focused on increasing revenues, leveraging its unmatched scale and making strategic capital investments to enhance shareholder value.

Service Corporation International Price, Consensus and EPS Surprise

Service Corporation International price-consensus-eps-surprise-chart | Service Corporation International Quote

SCI’s Quarterly Performance: Key Insights

SCI posted adjusted earnings of 79 cents per share, which came in line with the Zacks Consensus Estimate while increasing from 78 cents reported in the year-ago period. The gross profit remained flat in the cemetery and funeral segments. A lower share count and a reduced tax rate were offset by elevated corporate general and administrative expenses and slightly increased interest expenses.

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

Total revenues of $1,014 million increased from $1,001.9 million reported in the year-ago quarter. The top line beat the Zacks Consensus Estimate of $1,012 million.

The gross profit was $252.3 million compared with $253.7 million reported in the year-ago quarter. Corporate general and administrative costs were $43.7 million, higher than the year-ago period figure of $33.2 million. The uptick was mainly due to expenses related to a long-term incentive compensation plan.

The operating income of $212.4 million declined from $223 million reported in the year-ago quarter.

Decoding SCI’s Segment-Wise Results

Consolidated Funeral revenues came in at $566 million in the quarter compared with $554.8 million reported in the year-ago period. Total comparable funeral revenues rose 1.3%. The upside was backed by a $4.4 million rise in core funeral revenues and a $7.6 million increase in core general agency revenues and other revenues. This was somewhat negated by a $5.5 million drop in non-funeral home preneed sales revenues.

Core funeral revenues climbed 1% due to 2.1% growth in core average revenues, partially hurt by a 1.1% dip in core funeral services performed. The core cremation rate rose by 30 basis points (bps) to 56.8%.

Non-funeral home preneed sales revenues dropped by 17.2% due to a fall in non-funeral home preneed sales production. Comparable preneed funeral sales production tumbled 7.1%. Core preneed sales production fell 6% due to a shift to a new preneed insurance provider. Non-funeral home preneed sales production decreased 10.4% because of a shift from trust to insurance-funded contracts.

Comparable funeral gross profit came in at $107.4 million, down by $1.5 million. The gross profit contracted 50 bps to 19.3%.

Consolidated Cemetery revenues came in at $448 million compared with $447.1 million reported in the year-ago quarter. Total comparable cemetery revenues remained flat year over year as lower core revenues were countered by higher other revenues. The $4.8 million decline in core revenues stemmed from a fall in atneed revenues and decreased total recognized preneed revenues. Increased recognized preneed merchandise and service revenues were also negated by a decline in recognized preneed property revenues.

Comparable preneed cemetery sales production dropped 2.5% due to a decline in large sales. Core preneed cemetery sales production was flat year over year.

Comparable cemetery gross profit came in at $144.9 million, up $0.6 million. The gross profit margin expanded by 10 bps to 32.4%.

Service Corporation: Other Financial Aspects

The company ended the quarter with cash and cash equivalents of $185.4 million, long-term debt of $4,743.7 million and total equity of $1,627.8 million.

Net cash from operating activities amounted to nearly $681 million during the nine months ended Sept. 30, 2024. During the same period, the company incurred total capital expenditures of $276.8 million.

What to Expect From SCI in 2024?

For the fourth quarter of 2024, management envisions adjusted earnings per share (EPS) of $1-$1.10, indicating about 8-18% growth from the year-ago period’s figure of 93 cents.

Net cash provided by operating activities (excluding special items and cash taxes) is anticipated in the range of $240-$255 million in the fourth quarter. Net cash provided by operating activities (excluding special items) is expected in the range of $230-$250 million. Management expects total maintenance capital expenditures of roughly $80 million for the quarter.

For full-year 2024, Service Corporation now expects adjusted EPS in the range of $3.47-$3.57 compared with the previous guidance of the lower half of the $3.50-$3.80 band.

With an outlook of sustained robust operating cash flow and anticipated strong fourth-quarter growth in adjusted earnings per share, the company is raising its full-year 2024 adjusted operating cash flow guidance midpoint from $930 million to $950 million. The updated guidance range is now $940-$960 million, up from the previous $900 million-$960 million range.

Management continues to expect total maintenance capital expenditures of $325 million for 2024.

Shares of this Zacks Rank #3 (Hold) company have risen 6.7% in the past six months compared with the industry’s growth of 6.2%.

Stocks to Consider

Freshpet FRPT manufactures, distributes and markets natural fresh meals and treats for dogs and cats. It currently sports a Zacks Rank of 1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for FRPT’s current financial-year sales and earnings indicates advancements of 26.1% and 202.9%, respectively, from the prior-year figures. Freshpet has a trailing four-quarter earnings surprise of 132.9%, on average.

BRF BRFS, which produces and slaughters poultry and pork for processing, production and sale of fresh meat, processed products, pasta, margarine, pet food and other products, currently sports a Zacks Rank #1. BRFS delivered a positive earnings surprise of 57.1% in the last reported quarter.

The Zacks Consensus Estimate for BRF’s current financial-year sales and earnings implies growth of 14.7% and 256.7%, respectively, from the year-ago reported numbers.

McCormick & Company, Inc. MKC is a leading manufacturer, marketer and distributor of spices, seasonings, specialty foods and flavors. It currently carries a Zacks Rank #2 (Buy).

The Zacks Consensus Estimate for McCormick & Company’s current fiscal-year sales and earnings indicates advancements of 0.6% and 8.2%, respectively, from the year-ago reported figures. MKC has a trailing four-quarter earnings surprise of 13.8%, on average.

Zacks Investment Research