Funeral services company Carriage Services (NYSE:CSV) reported results ahead of analysts' expectations in Q1 CY2024, with revenue up 8.4% year on year to $103.5 million. It made a GAAP profit of $0.45 per share, down from its profit of $0.57 per share in the same quarter last year.
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Carriage Services (CSV) Q1 CY2024 Highlights:
- Revenue: $103.5 million vs analyst estimates of $98.8 million (4.8% beat)
- Adjusted EBITDA: $33.6 million vs analyst estimates of $29.7 million (13.1% beat)
- EPS: $0.45 vs analyst expectations of $0.61 (26.5% miss)
- Gross Margin (GAAP): 36%, in line with the same quarter last year
- Free Cash Flow of $20.9 million, up 63.3% from the previous quarter
- Market Capitalization: $387.5 million
Established in 1991, Carriage Services (NYSE:CSV) is a provider of funeral and cemetery services in the United States.
Specialized Consumer ServicesSome consumer discretionary companies don’t fall neatly into a category because their products or services are unique. Although their offerings may be niche, these companies have often found more efficient or technology-enabled ways of doing or selling something that has existed for a while. Technology can be a double-edged sword, though, as it may lower the barriers to entry for new competitors and allow them to do serve customers better.
Sales GrowthReviewing a company's long-term performance can reveal insights into its business quality. Any business can have short-term success, but a top-tier one sustains growth for years. Carriage Services's annualized revenue growth rate of 7.9% over the last five years was weak for a consumer discretionary business. Within consumer discretionary, a long-term historical view may miss a company riding a successful new product or emerging trend. That's why we also follow short-term performance. Carriage Services's recent history shows the business has slowed as its annualized revenue growth of 1.7% over the last two years is below its five-year trend.
This quarter, Carriage Services reported solid year-on-year revenue growth of 8.4%, and its $103.5 million of revenue outperformed Wall Street's estimates by 4.8%. Looking ahead, Wall Street expects revenue to remain flat over the next 12 months, a deceleration from this quarter.
Cash Is KingIf you've followed StockStory for a while, you know we emphasize free cash flow. Why, you ask? We believe that in the end, cash is king, and you can't use accounting profits to pay the bills.
Over the last two years, Carriage Services has shown solid cash profitability, giving it the flexibility to reinvest or return capital to investors. The company's free cash flow margin has averaged 15.1%, above the broader consumer discretionary sector.
Carriage Services's free cash flow came in at $20.9 million in Q1, equivalent to a 20.2% margin and down 13% year on year.
Key Takeaways from Carriage Services's Q1 Results We enjoyed seeing Carriage Services exceed analysts' revenue and adjusted EBITDA expectations this quarter. The stock is up 3% after reporting and currently trades at $26.6 per share.