Why Service International (SCI) shares are getting obliterated today
What happened?
Shares of funeral services company Service International (NYSE:SCI) fell 11.4% in the afternoon session after the company updated its full-year adjusted earnings per share outlook after third-quarter results, citing lower funeral volumes and higher costs. According to a company press release, Service Corporation International expects fourth-quarter adjusted earnings per share of $1.10 to $1.20 and now expects full-year adjusted earnings per share of $3.94 to $4.04. The outlook reflects lower funeral volumes than the company had anticipated, along with higher healthcare costs and higher selling compensation and advertising tied to preneed sales. Third-quarter adjusted earnings per share rose 11% to 97 cents from 87 cents. GAAP earnings per share rose 24% to $1.03 from 83 cents. Consolidated revenue increased $49.2 million, or 5%.
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What is the market telling us
Service International’s shares are not very volatile and have only had 2 moves greater than 5% over the last year. Moves this big are rare for Service International and indicate this news significantly impacted the market’s perception of the business.
The biggest move we wrote about over the last year was 12 months ago when the stock gained 5.4% on the news that the company reported third-quarter 2025 financial results that surpassed analyst expectations for revenue and profit. The funeral services provider announced adjusted earnings per share of $0.87, a 10.1% increase from the prior year and ahead of the $0.83 analysts had projected. Revenue grew 4.4% year-on-year to $1.06 billion, also topping Wall Street's forecasts. While the company's free cash flow margin declined from the prior year, management maintained its full-year earnings guidance. The stronger-than-expected quarterly performance appeared to be the main driver for the stock, signaling to investors that the company is effectively navigating the current market.
Service International is down 6.3% since the beginning of the year, and at $72.34 per share, it is trading 17.5% below its 52-week high of $87.73 from April 2026. Despite the year-to-date decline, investors who bought $1,000 worth of Service International’s shares 5 years ago would now be looking at an investment worth $1,056.
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