Cremation Trends and Revenue Projections: Contradictions in Q1 2025 Earnings Call

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Revenue and Earnings Growth:
- Service Corporation International (SCI) reported adjusted earnings per share of $0.96, up from $0.89 in the prior year, driven by a 4% increase in funeral revenue and a 2% decrease in cemetery revenue.
- The earnings growth was partially offset by a higher effective tax rate due to the loss of deductibility of certain excess tax benefits.

Funeral Revenue Performance:
- Total comparable funeral revenue increased by $23 million or about 4% over the prior year quarter, with core funeral revenue increasing by $18 million or about 4%.
- This increase was primarily due to a healthy 2.5% growth in the core average revenue per service and a 1% increase in core funeral services performed.

Cemetery Revenue and Production:
- Comparable cemetery revenue decreased by $8 million or about 2%, with the core revenue decline of $10 million partially offset by a $2 million increase in other revenue.
- The decline in core revenue was mainly due to a $12 million decrease in recognized preneed property revenue, while comparable preneed cemetery sales production declined by $8 million or about 3%.

Capital Investment and Shareholder Returns:
- SCI invested $95 million in existing locations and acquisitions in the first quarter, including $15 million towards business acquisitions.
- The company returned $176 million to shareholders, with $46 million in dividends and $130 million in share repurchases, representing a 17% decrease in shares outstanding to approximately 143 million shares.