Carriage Services delivered first quarter results that exceeded Wall Street’s expectations for both revenue and non-GAAP earnings, while the market response was muted. Management attributed the performance to higher funeral home volumes and increased average revenue per contract, with CEO Carlos Quezada highlighting that a shift in the flu season pulled some demand into Q1. Cemetery revenue also rose, supported by ongoing preneed sales strategies, while the company made progress on its Trinity system rollout and supply chain optimization initiatives.
Is now the time to buy CSV? Find out in our full research report (it’s free).
Carriage Services (CSV) Q1 CY2025 Highlights:
- Revenue: $107.1 million vs analyst estimates of $104.2 million (3.5% year-on-year growth, 2.8% beat)
- Adjusted EPS: $0.96 vs analyst estimates of $0.84 (14.3% beat)
- Adjusted EBITDA: $32.9 million vs analyst estimates of $32.86 million (30.7% margin, in line)
- The company reconfirmed its revenue guidance for the full year of $405 million at the midpoint
- Management reiterated its full-year Adjusted EPS guidance of $3.20 at the midpoint
- EBITDA guidance for the full year is $130.5 million at the midpoint, below analyst estimates of $131.4 million
- Operating Margin: 24.1%, up from 20.3% in the same quarter last year
- Market Capitalization: $694.3 million
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions Carriage Services’s Q1 Earnings Call
- Alex Paris (Barrington Research) asked about funeral segment performance in March and April; CEO Carlos Quezada confirmed momentum continued through April, driven by volume and modest price increases.
- Alex Paris (Barrington Research) inquired whether the impact of COVID-19 has fully normalized; Quezada replied the company believes volumes have now leveled out, expecting a “wash off” effect in 2025.
- Alex Paris (Barrington Research) questioned the decline in preneed cemetery property sales; Quezada attributed this to inventory delays at key cemeteries, not consumer demand, and expects growth to rebound as projects complete.
- John Franzreb (Sidoti & Company) asked about cost-saving initiatives; CFO John Enwright described ongoing supply chain projects in caskets, fleet, and digital services, with meaningful savings expected by year-end.
- George Kelly (ROTH Capital Partners) requested details on upcoming property divestitures and acquisition timing; Enwright indicated additional sales and reinvestment into new businesses are planned for the back half of the year.
Catalysts in Upcoming Quarters
In the coming quarters, the StockStory team will monitor (1) the pace at which Carriage Services completes and monetizes new cemetery inventory, (2) execution and realized savings from ongoing supply chain and Trinity system initiatives, and (3) progress on the company’s acquisition strategy as divestiture proceeds are redeployed. Trends in funeral home volume and pricing, along with resilience in preneed sales amid economic uncertainty, will also be important signposts.
Carriage Services currently trades at $44.24, up from $39.90 just before the earnings. In the wake of this quarter, is it a buy or sell? See for yourself in our full research report (it’s free).
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