Carriage Services (CSV) Stock Forecast & Price Target

Carriage Services Inc. demonstrated strong financial performance with a 5.2% year-over-year increase in operating revenue, largely fueled by a significant 21.4% rise in cemetery preneed sales. The company's adjusted free cash flow rose 9.5% to $39.3 million, accompanied by a 27.2% increase in financial revenue, which underscores the effectiveness of its sales strategies in preneed insurance contracts. Furthermore, operational metrics, such as EBITDA growth of 23.5% in financial operations and 11.3% in cemetery operations, reflect robust profitability and support a positive outlook for the company.

Carriage Services Inc. experienced a notable decline in its financial performance, with funeral operating EBITDA decreasing 4.8% to $20.6 million and operating income falling 23.5% to $17.5 million, attributed to increased losses from divestitures and impairment charges. Additionally, net income decreased by 33.4% to $6.6 million, missing both internal estimates and consensus expectations, further signaling weakness in profitability. The funeral revenue, which constitutes a significant portion of total revenues, decreased 1.3% driven largely by a decline in funeral contract volume, a trend likely exacerbated by macroeconomic pressures affecting consumer discretionary spending and a decrease in at-need funeral volumes due to lower death rates since 2021.