Service Corporation International (SCI) recently reported Q2 earnings, with shares running over 8% since the release. Results were good, although management kept bottom-line guidance the same for FY18.
One of the key areas we have emphasized was the potential in M&A, and how perhaps this would be the best value driver going forward (as opposed to buybacks and dividends). This past quarter, management revealed that M&A and new construction was in fact a strong value driver, having blown past their capital allocation guidance by a considerable amount.
Going forward, we favor M&A as