Service Corporation International (NYSE:SCI) shareholders are probably feeling a little disappointed, since its shares fell 2.4% to US$76.55 in the week after its latest quarterly results. The result was positive overall - although revenues of US$1.1b were in line with what the analysts predicted, Service Corporation International surprised by delivering a statutory profit of US$0.98 per share, modestly greater than expected. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

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Taking into account the latest results, Service Corporation International's six analysts currently expect revenues in 2025 to be US$4.28b, approximately in line with the last 12 months. Per-share earnings are expected to accumulate 2.9% to US$3.83. In the lead-up to this report, the analysts had been modelling revenues of US$4.28b and earnings per share (EPS) of US$3.86 in 2025. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

View our latest analysis for Service Corporation International

The analysts reconfirmed their price target of US$88.72, showing that the business is executing well and in line with expectations. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. There are some variant perceptions on Service Corporation International, with the most bullish analyst valuing it at US$98.00 and the most bearish at US$83.34 per share. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. It's pretty clear that there is an expectation that Service Corporation International's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 2.2% growth on an annualised basis. This is compared to a historical growth rate of 4.0% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 11% per year. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Service Corporation International.

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The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Service Corporation International's revenue is expected to perform worse than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple Service Corporation International analysts - going out to 2027, and you can see them free on our platform here.

Even so, be aware that  Service Corporation International is showing  2 warning signs in our investment analysis, you should know about...

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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