SCI - SCI trades lower despite Q4 estimates beat

Service ([[SCI]] -3.3%) Q4 comparable preneed cemetery sales production continued to be strong and was higher by $40M, or 16% Y/Y due to a higher velocity of contracts sold.Comparable funeral gross profit grew 44% and margin expanded 640 bps to 27.5%.Comparable cemetery gross profit grew 42% and margin expanded 680 bps to 39%.Net cash provided by operating activities grew ~$88M Y/Y, primarily due to increased operating profit.“The growth was driven by elevated COVID-19 mortality which resulted in an increase in both funeral services performed and burials in our cemeteries.” said Tom Ryan, President, Chairman, and CEO.2021 Outlook: The guidance provided has a wider range than usual due to the continued uncertainty around the impact of the COVID-19 pandemic with Adj. EPS of $2.50-$2.90; Adj. Net cash provided by operating activities of $600-700M; Capital improvements at existing locations and cemetery development expenditures of $235-255M.Previously: Service EPS beats by $0.22, beats on revenue (Feb. 15)

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SCI trades lower despite Q4 estimates beat