It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors. Luckily, Zacks Premium offers several different ways to do both.
The research service features daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, all of which will help you become a smarter, more confident investor.
It also includes access to the Zacks Style Scores.
What are the Zacks Style Scores? Developed alongside the Zacks Rank, the Zacks Style Scores are a group of complementary indicators that help investors pick stocks with the best chances of beating the market over the next 30 days.
Each stock is given an alphabetic rating of A, B, C, D or F based on their value, growth, and momentum qualities. With this system, an A is better than a B, a B is better than a C, and so on, meaning the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value ScoreFor value investors, it's all about finding good stocks at good prices, and discovering which companies are trading under their true value before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to help pick out the most attractive and discounted stocks.
Growth ScoreGrowth investors are more concerned with a stock's future prospects, and the overall financial health and strength of a company. Thus, the Growth Style Score analyzes characteristics like projected and historic earnings, sales, and cash flow to find stocks that will see sustainable growth over time.
Momentum ScoreMomentum trading is all about taking advantage of upward or downward trends in a stock's price or earnings outlook, and these investors live by the saying "the trend is your friend." The Momentum Style Score can pinpoint good times to build a position in a stock, using factors like one-week price change and the monthly percentage change in earnings estimates.
VGM ScoreIf you want a combination of all three Style Scores, then the VGM Score will be your friend. It rates each stock on their combined weighted styles, helping you find the companies with the most attractive value, best growth forecast, and most promising momentum. It's also one of the best indicators to use with the Zacks Rank.
How Style Scores Work with the Zacks Rank The Zacks Rank, which is a proprietary stock-rating model, employs earnings estimate revisions, or changes to a company's earnings expectations, to make building a winning portfolio easier.
#1 (Strong Buy) stocks have produced an unmatched +23.7% average annual return since 1988, which is more than double the S&P 500's performance over the same time frame. However, the Zacks Rank examines a ton of stocks, and there can be more than 200 companies with a Strong Buy rank, and another 600 with a #2 (Buy) rank, on any given day.
This totals more than 800 top-rated stocks, and it can be overwhelming to try and pick the best stocks for you and your portfolio.
That's where the Style Scores come in.
To maximize your returns, you want to buy stocks with the highest probability of success. This means picking stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you find yourself looking at stocks with a #3 (Hold) rank, make sure they have Scores of A or B as well to ensure as much upside potential as possible.
The direction of a stock's earnings estimate revisions should always be a key factor when choosing which stocks to buy, since the Scores were created to work together with the Zacks Rank.
A stock with a #4 (Sell) or #5 (Strong Sell) rating, for instance, even one with Scores of A and B, will still have a declining earnings forecast, and a greater chance its share price will fall too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Encompass Health (EHC - Free Report) Encompass Health Corporation is a provider of integrated healthcare services. It offers facility-based patient care through its network of inpatient rehabilitation hospitals. Through its extensive network of 173 hospitals across 39 states and Puerto Rico, the company delivers high-quality, cost-effective, integrated care in the healthcare space. It provides a continuum of facility-based for its patients and their families, which will gain more prevalence as coordinated care and integrated delivery payment models, such as accountable care organizations and bundled payment arrangements.
EHC is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.
It also boasts a Value Style Score of B thanks to attractive valuation metrics like a forward P/E ratio of 18; value investors should take notice.
For fiscal 2026, five analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.07 to $5.97 per share. EHC boasts an average earnings surprise of +9.8%.
With a solid Zacks Rank and top-tier Value and VGM Style Scores, EHC should be on investors' short list.
, /PRNewswire/ -- Encompass Health Corp. (NYSE: EHC) today announced the pricing of a private offering of $500 million in aggregate principal amount of 5.875% senior notes due 2034 (the "Notes") at a price of 100% of the principal amount thereof. The Company will pay interest on the Notes semiannually in arrears on June 1 and Dec. 1 of each year, beginning on Dec. 1, 2026. The Notes will be jointly and severally guaranteed on a senior unsecured basis by all of its existing and future subsidiaries that guarantee borrowings under the Company's credit agreement and other capital markets debt. This offering is expected to close on May 29, 2026, subject to customary closing conditions.
The Company intends to use the net proceeds from this offering, together with available cash on hand, to redeem at par $400 million in aggregate principal amount of its outstanding 4.500% Senior Notes due 2028, to repay $100 million of the outstanding amounts under the Company's senior secured revolving credit facility and to pay certain related fees and expenses in connection with the foregoing.
The Notes have been offered in the United States only to persons reasonably believed to be qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the "Securities Act"), and to certain non-U.S. persons in transactions outside the United States pursuant to Regulation S under the Securities Act. The offer and any sale of the Notes and the related guarantees have not been and will not be registered under the Securities Act or any state securities laws, and the Notes may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act and applicable state securities laws.
This press release is for informational purposes only and does not constitute an offer to sell or a solicitation of an offer to buy any security and does not constitute an offer, solicitation or sale of any security in any jurisdiction in which such offer, solicitation or sale would be unlawful. This press release shall not constitute a notice of redemption with respect to the notes to be redeemed.
About Encompass Health
Encompass Health (NYSE: EHC) is the largest owner and operator of inpatient rehabilitation hospitals in the United States. With a national footprint that includes 175 hospitals in 39 states and Puerto Rico, the Company provides high-quality, compassionate rehabilitative care for patients recovering from a major injury or illness, using advanced technology and innovative treatments to maximize recovery. Encompass Health is recognized as America's Most Awarded Leader in Inpatient Rehabilitation by Newsweek and Statista and is ranked among Fortune's World's Most Admired Companies™, Forbes' America's Best Companies and Becker's Healthcare's Top Places to Work in Healthcare. For more information, visit encompasshealth.com, or follow us on our newsroom, X, Instagram and Facebook.
Forward-looking statements
Statements contained in this press release which are not historical facts, such as the completion of the private offering of the Notes and the use of proceeds from the offering, are forward-looking statements. In addition, Encompass Health, through its senior management, may from time to time make forward-looking public statements concerning the matters described herein. All such estimates, projections, and forward-looking information speak only as of the date hereof, and Encompass Health undertakes no duty to publicly update or revise such forward-looking information, whether as a result of new information, future events, or otherwise. Such forward-looking statements are necessarily estimates based upon current information and involve a number of risks and uncertainties. Actual events or results may differ materially from those anticipated in these forward-looking statements as a result of a variety of factors. While it is impossible to identify all such factors, factors which could cause actual events or results to differ materially from those estimated by Encompass Health include, but are not limited to, Encompass Health's ability to complete the offering of the Notes; potential disruptions, breaches, or other incidents affecting the proper operation, availability, or security of Encompass Health's information systems, including unauthorized access to or theft of patient, business associate, or other sensitive information; changes, delays in (including in connection with resolution of Medicare payment reviews or appeals), or suspension of reimbursement for Encompass Health's services by governmental or private payors; a significant disruption in the capital markets or economy; and other factors which may be identified from time to time in Encompass Health's SEC filings and other public announcements, including its Form 10-K for the year ended Dec. 31, 2025 and Form 10-Q for the quarter ended March 31, 2026.
Media contact:
Polly Manuel | 205.970.5912
[email protected]
Investor relations contact:
Mark Miller | 205.970.5860
[email protected]
, /PRNewswire/ -- Encompass Health Corp. (NYSE: EHC) today issued notice for redemption of $400 million of the outstanding principal balance of its 4.500% senior notes due 2028 (the "2028 Notes"). The redemption price will be 100.0% of par, plus accrued and unpaid interest to the redemption date of June 13, 2026, pursuant to the terms of the 2028 Notes. Since June 13, 2026 is not a business day, the redemption price will be paid on the next business day, June 15, 2026. As a result of this redemption, the Company expects to record an approximate $3.2 million loss on early extinguishment of debt in the second quarter of 2026. As of May 14, 2026, the aggregate principal amount of the 2028 Notes outstanding was $800 million.
The information contained in this press release does not constitute a notice of redemption of the 2028 Notes. Holders of the 2028 Notes should refer to the notice of redemption delivered to the registered holders of the 2028 Notes by Computershare Trust Company, National Association, the trustee with respect to the 2028 Notes.
About Encompass Health
Encompass Health (NYSE: EHC) is the largest owner and operator of inpatient rehabilitation hospitals in the United States. With a national footprint that includes 175 hospitals in 39 states and Puerto Rico, the Company provides high-quality, compassionate rehabilitative care for patients recovering from a major injury or illness, using advanced technology and innovative treatments to maximize recovery. Encompass Health is recognized as America's Most Awarded Leader in Inpatient Rehabilitation by Newsweek and Statista and is ranked among Fortune's World's Most Admired Companies™, Forbes' America's Best Companies and Becker's Healthcare's Top Places to Work in Healthcare. For more information, visit encompasshealth.com, or follow us on our newsroom, X, Instagram and Facebook.
Forward-looking statements
Statements contained in this press release which are not historical facts are forward-looking statements. In addition, Encompass Health, through its senior management, may from time to time make forward-looking public statements concerning the matters described herein. All such estimates, projections, and forward-looking information speak only as of the date hereof, and Encompass Health undertakes no duty to publicly update or revise such forward-looking information, whether as a result of new information, future events, or otherwise. Such forward-looking statements are necessarily estimates based upon current information and involve a number of risks and uncertainties. Actual events or results may differ materially from those anticipated in these forward-looking statements as a result of a variety of factors. While it is impossible to identify all such factors, factors which could cause actual events or results to differ materially from those estimated by Encompass Health include, but are not limited to, potential disruptions, breaches, or other incidents affecting the proper operation, availability, or security of Encompass Health's information systems, including unauthorized access to or theft of patient, business associate, or other sensitive information; changes, delays in (including in connection with resolution of Medicare payment reviews or appeals), or suspension of reimbursement for Encompass Health's services by governmental or private payors; a significant market disruption; and other factors which may be identified from time to time in Encompass Health's SEC filings and other public announcements, including its Form 10-K for the year ended Dec. 31, 2025 and Form 10-Q for the quarter ended March 31, 2026.
Media contact:
Polly Manuel | 205-970-5912
[email protected]
Investor relations contact:
Mark Miller | 205-970-5860
[email protected]
It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors. Luckily, Zacks Premium offers several different ways to do both.
The research service features daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, all of which will help you become a smarter, more confident investor.
Zacks Premium also includes the Zacks Style Scores.
What are the Zacks Style Scores? The Zacks Style Scores, developed alongside the Zacks Rank, are complementary indicators that rate stocks based on three widely-followed investing methodologies; they also help investors pick stocks with the best chances of beating the market over the next 30 days.
Based on their value, growth, and momentum characteristics, each stock is assigned a rating of A, B, C, D, or F. The better the score, the better chance the stock will outperform; an A is better than a B, a B is better than a C, and so on.
The Style Scores are broken down into four categories:
Value ScoreFor value investors, it's all about finding good stocks at good prices, and discovering which companies are trading under their true value before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to help pick out the most attractive and discounted stocks.
Growth ScoreGrowth investors, on the other hand, are more concerned with a company's financial strength and health, and its future outlook. The Growth Style Score examines things like projected and historic earnings, sales, and cash flow to find stocks that will experience sustainable growth over time.
Momentum ScoreMomentum investors, who live by the saying "the trend is your friend," are most interested in taking advantage of upward or downward trends in a stock's price or earnings outlook. Utilizing one-week price change and the monthly percentage change in earnings estimates, among other factors, the Momentum Style Score can help determine favorable times to buy high-momentum stocks.
VGM ScoreIf you like to use all three kinds of investing, then the VGM Score is for you. It's a combination of all Style Scores, and is an important indicator to use with the Zacks Rank. The VGM Score rates each stock on their shared weighted styles, narrowing down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank The Zacks Rank, which is a proprietary stock-rating model, employs earnings estimate revisions, or changes to a company's earnings expectations, to make building a winning portfolio easier.
#1 (Strong Buy) stocks have produced an unmatched +23.7% average annual return since 1988, which is more than double the S&P 500's performance over the same time frame. However, the Zacks Rank examines a ton of stocks, and there can be more than 200 companies with a Strong Buy rank, and another 600 with a #2 (Buy) rank, on any given day.
With more than 800 top-rated stocks to choose from, it can certainly feel overwhelming to pick the ones that are right for you and your investing journey.
That's where the Style Scores come in.
To have the best chance of big returns, you'll want to always consider stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B, which will give you the highest probability of success. If you're looking at stocks with a #3 (Hold) rank, it's important they have Scores of A or B as well to ensure as much upside potential as possible.
As mentioned above, the Scores are designed to work with the Zacks Rank, so any change to a company's earnings outlook should be a deciding factor when picking which stocks to buy.
For instance, a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one that boasts Scores of A and B, still has a downward-trending earnings forecast, and a much greater likelihood its share price will decline as well.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Encompass Health (EHC - Free Report) Encompass Health Corporation is a provider of integrated healthcare services. It offers facility-based patient care through its network of inpatient rehabilitation hospitals. Through its extensive network of 173 hospitals across 39 states and Puerto Rico, the company delivers high-quality, cost-effective, integrated care in the healthcare space. It provides a continuum of facility-based for its patients and their families, which will gain more prevalence as coordinated care and integrated delivery payment models, such as accountable care organizations and bundled payment arrangements.
EHC is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.
Additionally, the company could be a top pick for growth investors. EHC has a Growth Style Score of A, forecasting year-over-year earnings growth of 9.4% for the current fiscal year.
Five analysts revised their earnings estimate upwards in the last 60 days for fiscal 2026. The Zacks Consensus Estimate has increased $0.06 to $5.96 per share. EHC boasts an average earnings surprise of +9.8%.
With a solid Zacks Rank and top-tier Growth and VGM Style Scores, EHC should be on investors' short list.
Key Takeaways Encompass Health is expanding with new rehab hospitals and added beds to meet rising demand.EHC posted 9.1% revenue growth in Q1 2026 as discharges and patient revenues improved.Rising labor costs and $2.5B in long-term debt may pressure EHC's margins and flexibility. Encompass Health Corporation (EHC - Free Report) has been steadily expanding its inpatient rehabilitation business, driven by growing demand for rehabilitation services. The company continues to strengthen its network through de novo hospitals and additional bed capacity across existing facilities. Shares of EHC have lost 0.4% over the past three months, outperforming the industry, which declined 7.2% during the same period.
Headquartered in Bloomfield, AL, Encompass Health has a market capitalization of nearly $10.58 billion. EHC is currently trading at a forward 12-month P/E of 17.24X, higher than the industry average of 16.59X, but lower than its five-year median of 18.76X. EHC currently holds a Zacks Rank #3 (Hold) and a Value Score of B.
Zacks Estimates for EHCThe Zacks Consensus Estimate for 2026 earnings is pegged at $5.96 per share, suggesting a 9.4% year-over-year increase. Over the past month, estimates have seen five upward revisions against one movement in the opposite direction. The consensus estimate for 2026 revenues is pinned at $6.43 billion, indicating 8.3% year-over-year growth. Management expects 2026 revenues to be in the range of $6.375-$6.470 billion. Encompass beat earnings estimates in each of the trailing four quarters, with the average surprise being 9.8%.
Encompass Health Corporation Price, Consensus and EPS SurpriseEHC’s Key Growth DriversEncompass Health continues to benefit from rising demand for inpatient rehabilitation services, supported by an aging population and growing post-acute care needs. In first-quarter 2026, total discharges increased 4.3% year over year to 67,763, while same-store discharges rose 1.6%.
Capacity expansion remains a key growth driver for EHC. The company has been steadily increasing its footprint through de novo hospitals and bed additions. It opened eight de novo hospitals in 2023, seven in 2024 and eight hospitals along with a 50-bed satellite facility in 2025.
In first-quarter 2026, EHC opened a new 49-bed rehabilitation hospital in Irmo, SC, and added 44 beds across existing facilities. For 2026, management plans to open eight de novos, adding nearly 389 beds, along with 150-200 additional beds at existing hospitals.Net patient revenue per discharge improved 3.7%. The company has also maintained healthy occupancy levels, supporting consistent revenue growth. Revenues grew 11.9% in 2024, 10.5% in 2025 and another 9.1% in the first quarter of 2026 to $1.6 billion.
Despite industrywide cost pressures, EHC continues to deliver healthy profitability. Adjusted EBITDA increased 11.2% year over year to $348.8 million in the first quarter of 2026, while adjusted EPS rose 16.8% to $1.60. The company also maintains a strong trailing 12-month return on invested capital (ROIC) of 10.1%, well above the industry average of 6.7%, reflecting disciplined capital deployment and efficient operations.
The company’s healthy cash-generating ability provides flexibility to support expansion initiatives and shareholder returns. Net cash from operations increased 17.9% in 2024, 17.2% in 2025 and another 8.5% in first-quarter 2026 to $313.1 million. EHC expects adjusted free cash flow between $760 million and $875 million in 2026, positioning it well to fund growth projects, dividends and share repurchases.
Key Risk Factors for EHCLabor expenses remain a major concern for EHC. Salaries and benefits increased 11.6% in 2024, 7.4% in 2025 and another 7.3% in the first quarter of 2026 to $818.1 million. Labor costs accounted for 51.6% of revenues during the first quarter. Continued shortages of nurses, therapists and other healthcare professionals may increase dependence on costly contract labor, pressuring margins.
EHC exited first-quarter 2026 with $110.5 million in cash and cash equivalents and $2.5 billion in long-term debt. Its net debt-to-capital ratio of 41.28% remained above the industry average of 39.01%, which could limit financial flexibility. Regulatory changes, including TEAM implementation and expanded RCD reviews, may increase administrative burden and temporarily affect reimbursement collections.
Key PicksWhile investors can maintain a neutral view on Encompass Health, they can consider some better-ranked stocks in the broader Medical space like Indivior Pharmaceuticals, Inc. (INDV - Free Report) , BrightSpring Health Services, Inc. (BTSG - Free Report) and Hinge Health, Inc. (HNGE - Free Report) , each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Indivior Pharmaceuticals’ 2026 earnings is pegged at $3.35 per share, indicating a 34% year-over-year improvement. INDV beat earnings estimates in each of the trailing four quarters, with the average surprise being 65.4%. The consensus estimate for 2026 revenues is pinned at $1.3 billion, implying 1.5% year-over-year growth.
The Zacks Consensus Estimate for BrightSpring Health’s 2026 earnings is pegged at $1.64 per share, which has witnessed five upward revisions in the past 30 days, with no movement in the opposite direction. BTSG beat earnings estimates in three of the trailing four quarters and missed once, with the average surprise being 14.6%. The consensus estimate for 2026 revenues is pinned at $15.1 billion, implying 16.6% year-over-year growth.
The Zacks Consensus Estimate for Hinge Health’s 2026 earnings is pegged at $2.37 per share, which has moved up 52 cent over the past 30 days. The consensus estimate for revenues is pegged at $791.8 billion, indicating 34.7% year-over-year growth. HNGE’s bottom line surpassed estimates in each of the trailing four quarters, the average surprise being 179.5%.
Taking full advantage of the stock market and investing with confidence are common goals for new and old investors, and Zacks Premium offers many different ways to do both.
The popular research service can help you become a smarter, more self-assured investor, giving you access to daily updates of the Zacks Rank and Zacks Industry Rank, the Zacks #1 Rank List, Equity Research reports, and Premium stock screens.
It also includes access to the Zacks Style Scores.
What are the Zacks Style Scores? The Zacks Style Scores is a unique set of guidelines that rates stocks based on three popular investing types, and were developed as complementary indicators for the Zacks Rank. This combination helps investors choose securities with the highest chances of beating the market over the next 30 days.
Based on their value, growth, and momentum characteristics, each stock is assigned a rating of A, B, C, D, or F. The better the score, the better chance the stock will outperform; an A is better than a B, a B is better than a C, and so on.
The Style Scores are broken down into four categories:
Value ScoreValue investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and many other multiples, the Value Style Score identifies the most attractive and most discounted stocks.
Growth ScoreGrowth investors, on the other hand, are more concerned with a company's financial strength and health, and its future outlook. The Growth Style Score examines things like projected and historic earnings, sales, and cash flow to find stocks that will experience sustainable growth over time.
Momentum ScoreMomentum trading is all about taking advantage of upward or downward trends in a stock's price or earnings outlook, and these investors live by the saying "the trend is your friend." The Momentum Style Score can pinpoint good times to build a position in a stock, using factors like one-week price change and the monthly percentage change in earnings estimates.
VGM ScoreIf you like to use all three kinds of investing, then the VGM Score is for you. It's a combination of all Style Scores, and is an important indicator to use with the Zacks Rank. The VGM Score rates each stock on their shared weighted styles, narrowing down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank A proprietary stock-rating model, the Zacks Rank utilizes the power of earnings estimate revisions, or changes to a company's earnings outlook, to help investors create a successful portfolio.
Investors can count on the Zacks Rank's success, with #1 (Strong Buy) stocks producing an unmatched +23.7% average annual return since 1988, more than double the S&P 500's performance. But the model rates a large number of stocks, and there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
With more than 800 top-rated stocks to choose from, it can certainly feel overwhelming to pick the ones that are right for you and your investing journey.
That's where the Style Scores come in.
You want to make sure you're buying stocks with the highest likelihood of success, and to do that, you'll need to pick stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you like a stock that only has a #3 (Hold) rank, it should also have Scores of A or B to guarantee as much upside potential as possible.
Since the Scores were created to work together with the Zacks Rank, the direction of a stock's earnings estimate revisions should be a key factor when choosing which stocks to buy.
Here's an example: a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one with Style Scores of A and B, still has a downward-trending earnings outlook, and a bigger chance its share price will decrease too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Encompass Health (EHC - Free Report) Encompass Health Corporation is a provider of integrated healthcare services. It offers facility-based patient care through its network of inpatient rehabilitation hospitals. Through its extensive network of 173 hospitals across 39 states and Puerto Rico, the company delivers high-quality, cost-effective, integrated care in the healthcare space. It provides a continuum of facility-based for its patients and their families, which will gain more prevalence as coordinated care and integrated delivery payment models, such as accountable care organizations and bundled payment arrangements.
EHC is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.
Momentum investors should take note of this Medical stock. EHC has a Momentum Style Score of B, and shares are up 1.6% over the past four weeks.
For fiscal 2026, five analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.06 to $5.96 per share. EHC boasts an average earnings surprise of +9.8%.
With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, EHC should be on investors' short list.
, /PRNewswire/ -- Encompass Health Corp. (NYSE: EHC) today announced plans to build a freestanding, 36-bed inpatient rehabilitation hospital in Bridgeport, West Virginia. The hospital will be an expanded relocation of Encompass Health's former 19-bed unit within the WVU Medicine United Hospital Center.
"We're thrilled to expand access to inpatient rehabilitation care for patients in Bridgeport and surrounding communities," said Abe Sims, president of Encompass Health's MidAtlantic region. "The need for our services has increased with continued growth in the area, and we look forward to serving more patients closer to home in this new, freestanding hospital."
The hospital will feature all private patient rooms, a state-of-the-art therapy gym equipped with advanced rehabilitation technologies, an activities of daily living suite, an in-house dialysis suite, a dining room, a pharmacy and an outdoor therapy courtyard.
The hospital will serve patients recovering from debilitating illnesses and injuries, including stroke and other neurological conditions, brain and spinal cord injuries, amputations and complex orthopedic conditions. In addition to 24-hour nursing care, the hospital will provide physical, occupational and speech therapies to help patients restore function and improve quality of life. Care will be delivered by an interdisciplinary team of specialized nurses, therapists and physicians.
Encompass Health's 19-bed unit within the WVU Medicine United Hospital Center is now closed, but Encompass Health Rehabilitation Hospital of Morgantown has temporarily expanded its capacity to provide continuity of care for patients during construction of the new hospital in Bridgeport.
About Encompass Health
Encompass Health (NYSE: EHC) is the largest owner and operator of inpatient rehabilitation hospitals in the United States. With a national footprint that includes 175 hospitals in 39 states and Puerto Rico, the Company provides high-quality, compassionate rehabilitative care for patients recovering from major injuries or illnesses, using advanced technology and innovative treatments to maximize recovery. Encompass Health is recognized by Newsweek as America's Most Awarded Leader in Inpatient Rehabilitation and is ranked among Fortune's World's Most Admired Companies™ and Forbes' America's Best Companies. It is also recognized by Becker's Healthcare and Modern Healthcare as a top healthcare employer. For more information, visit encompasshealth.com and follow us on our newsroom, X, Instagram and Facebook.
Forward-Looking Statements
Statements contained in this press release which are not historical facts, such as those relating to the likelihood, timing and effects of the completion of this hospital project, are forward-looking statements. In addition, Encompass Health may from time to time make forward-looking public statements concerning the matters described herein. All such estimates, projections and forward-looking information speak only as of the date hereof, and Encompass Health undertakes no duty to publicly update or revise such forward-looking information, whether as a result of new information, future events or otherwise. Such forward-looking statements are necessarily estimates based upon current information and involve a number of risks and uncertainties. Encompass Health's actual results or events may differ materially from those anticipated in these forward-looking statements as a result of a variety of factors. While it is impossible to identify all such factors, factors which could cause actual results or events to differ materially from those anticipated include, but are not limited to, the regulatory review and approval process, any adverse outcome of various lawsuits, claims and legal or regulatory proceedings that may be brought by or against the Company; the possibility this project will experience unexpected delays; the ability to successfully complete this project consistent with Encompass Health's growth strategy, including development and maintenance of relationships with referral sources; disease outbreaks, including the speed, depth, geographic reach and duration of the spread; the actions to be taken by Encompass Health in response to disease outbreaks; changes in the regulation of the healthcare industry at either or both of the federal and state levels; competitive pressures in the healthcare industry and Encompass Health's response thereto; the hospital's ability to maintain proper local, state and federal licensing; potential disruptions, breaches or other incidents affecting the proper operation, availability or security of Encompass Health's information systems; Encompass Health's ability to attract and retain nurses, therapists and other healthcare professionals in a highly competitive environment with often severe staffing shortages and the impact on Encompass Health's labor expenses from potential union activity and staffing shortages; changes, delays in (including in connection with resolution of Medicare payment reviews or appeals), or suspension of reimbursement for Encompass Health's services by governmental or private payors; general conditions in the economy and capital markets; and other factors which may be identified from time to time in Encompass Health's SEC filings and other public announcements, including Encompass Health's Form 10-K for the year ended December 31, 2025 and Form 10-Q for the quarter ended March 31, 2026.
Media contact:
Polly Manuel | 205-970-5912
[email protected]
Investor relations contact:
Mark Miller | 205-970-5860
[email protected]
Key Takeaways Encompass Health plans a 36-bed rehabilitation hospital in Bridgeport, expanding regional capacity.The facility replaces a closed 19-bed unit and supports patients recovering from complex conditions.EHC continues its multi-year growth strategy with new hospitals and bed additions amid rising demand. Encompass Health Corporation (EHC - Free Report) is continuing to expand its rehabilitation network with plans to build a new 36-bed inpatient rehabilitation hospital in Bridgeport, WV. The freestanding facility will provide specialized care for patients recovering from strokes, spinal cord injuries, brain injuries, amputations, neurological disorders and complex orthopedic conditions.
The project represents an expansion and relocation of the former 19-bed rehabilitation unit at WVU Medicine United Hospital Center, which is now closed. Until the new hospital opens, Encompass Health Rehabilitation Hospital of Morgantown has increased its capacity to serve patients in the region.
The Bridgeport facility fits into Encompass Health’s long-term growth strategy of increasing capacity in markets where demand for rehabilitation services remains strong, strengthening its market share. It already operates 175 hospitals across 39 states and Puerto Rico, making it one of the largest providers of inpatient rehabilitation services in the country.
In 2026, the company expects to open eight new hospitals, adding 389 beds to its network. It also plans to increase capacity at existing facilities by 150 to 200 beds during the year. As of March 31, 2026, Encompass Health had 18 rehabilitation hospitals under development.
During first-quarter 2026 earnings, the company reaffirmed its growth plans for the 2023-2027 period, where it expects to inaugurate six to 10 de novo hospitals each year, as well as make bed additions in the range of 80-120 each year. It also projects discharge growth at a compound annual rate of 6-8% in the same time frame.
Price PerformanceShares of Encompass Health have lost 0.7% in the year-to-date period against the 7.3% growth of the industry.
Image Source: Zacks Investment Research
Zacks Rank and Key PicksEncompass Health currently has a Zacks Rank #3 (Hold).
Investors can look at some better-ranked stocks in the broader Medical space, like Tenet Healthcare (THC - Free Report) ,The Pennant Group, Inc. (PNTG - Free Report) and Quest Diagnostics Incorporated (DGX - Free Report) , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for Tenet Healthcare’s 2026 bottom line suggests 5.3% year-over-year growth. It witnessed eight upward estimate revisions over the past 30 days against no movement in the opposite direction. Tenet Healthcare beat earnings estimates in each of the last four quarters, with the average surprise being 20.6%.
The Zacks Consensus Estimate for The Pennant Group’s current-year bottom line is pegged at $1.35 per share, which indicates 14.4% growth from a year ago. During the past 30 days, it witnessed one upward estimate revision against none in the opposite direction. The consensus mark for PNTG’s current year revenues predicts a 23.3% year-over-year increase.
The Zacks Consensus Estimate for Quest Diagnostics’ current-year earnings implies 8.6% improvement from the year-ago reported figure. It beat earnings estimates in each of the last four quarters, with an average surprise of 3.5%. The consensus mark for Quest Diagnostics’ current-year revenues indicates a 7.2% year-over-year increase.
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Zacks Premium includes access to the Zacks Style Scores as well.
What are the Zacks Style Scores? The Zacks Style Scores is a unique set of guidelines that rates stocks based on three popular investing types, and were developed as complementary indicators for the Zacks Rank. This combination helps investors choose securities with the highest chances of beating the market over the next 30 days.
Each stock is assigned a rating of A, B, C, D, or F based on their value, growth, and momentum characteristics. Just like in school, an A is better than a B, a B is better than a C, and so on -- that means the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value ScoreFinding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to highlight the most attractive and discounted stocks.
Growth ScoreGrowth investors are more concerned with a stock's future prospects, and the overall financial health and strength of a company. Thus, the Growth Style Score analyzes characteristics like projected and historic earnings, sales, and cash flow to find stocks that will see sustainable growth over time.
Momentum ScoreMomentum traders and investors live by the saying "the trend is your friend." This investing style is all about taking advantage of upward or downward trends in a stock's price or earnings outlook. Employing factors like one-week price change and the monthly percentage change in earnings estimates, the Momentum Style Score can indicate favorable times to build a position in high-momentum stocks.
VGM ScoreIf you like to use all three kinds of investing, then the VGM Score is for you. It's a combination of all Style Scores, and is an important indicator to use with the Zacks Rank. The VGM Score rates each stock on their shared weighted styles, narrowing down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank A proprietary stock-rating model, the Zacks Rank utilizes the power of earnings estimate revisions, or changes to a company's earnings outlook, to help investors create a successful portfolio.
#1 (Strong Buy) stocks have produced an unmatched +23.7% average annual return since 1988, which is more than double the S&P 500's performance over the same time frame. However, the Zacks Rank examines a ton of stocks, and there can be more than 200 companies with a Strong Buy rank, and another 600 with a #2 (Buy) rank, on any given day.
With more than 800 top-rated stocks to choose from, it can certainly feel overwhelming to pick the ones that are right for you and your investing journey.
That's where the Style Scores come in.
To maximize your returns, you want to buy stocks with the highest probability of success. This means picking stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you find yourself looking at stocks with a #3 (Hold) rank, make sure they have Scores of A or B as well to ensure as much upside potential as possible.
Since the Scores were created to work together with the Zacks Rank, the direction of a stock's earnings estimate revisions should be a key factor when choosing which stocks to buy.
Here's an example: a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one with Style Scores of A and B, still has a downward-trending earnings outlook, and a bigger chance its share price will decrease too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Encompass Health (EHC - Free Report) Encompass Health Corporation is a provider of integrated healthcare services. It offers facility-based patient care through its network of inpatient rehabilitation hospitals. Through its extensive network of 173 hospitals across 39 states and Puerto Rico, the company delivers high-quality, cost-effective, integrated care in the healthcare space. It provides a continuum of facility-based for its patients and their families, which will gain more prevalence as coordinated care and integrated delivery payment models, such as accountable care organizations and bundled payment arrangements.
EHC is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.
It also boasts a Value Style Score of B thanks to attractive valuation metrics like a forward P/E ratio of 17.02; value investors should take notice.
Five analysts revised their earnings estimate higher in the last 60 days for fiscal 2026, while the Zacks Consensus Estimate has increased $0.07 to $5.97 per share. EHC also boasts an average earnings surprise of +9.8%.
With a solid Zacks Rank and top-tier Value and VGM Style Scores, EHC should be on investors' short list.
It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors. Luckily, Zacks Premium offers several different ways to do both.
The research service features daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, all of which will help you become a smarter, more confident investor.
It also includes access to the Zacks Style Scores.
What are the Zacks Style Scores? The Zacks Style Scores is a unique set of guidelines that rates stocks based on three popular investing types, and were developed as complementary indicators for the Zacks Rank. This combination helps investors choose securities with the highest chances of beating the market over the next 30 days.
Each stock is given an alphabetic rating of A, B, C, D or F based on their value, growth, and momentum qualities. With this system, an A is better than a B, a B is better than a C, and so on, meaning the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value ScoreFinding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to highlight the most attractive and discounted stocks.
Growth ScoreGrowth investors are more concerned with a stock's future prospects, and the overall financial health and strength of a company. Thus, the Growth Style Score analyzes characteristics like projected and historic earnings, sales, and cash flow to find stocks that will see sustainable growth over time.
Momentum ScoreMomentum traders and investors live by the saying "the trend is your friend." This investing style is all about taking advantage of upward or downward trends in a stock's price or earnings outlook. Employing factors like one-week price change and the monthly percentage change in earnings estimates, the Momentum Style Score can indicate favorable times to build a position in high-momentum stocks.
VGM ScoreIf you want a combination of all three Style Scores, then the VGM Score will be your friend. It rates each stock on their combined weighted styles, helping you find the companies with the most attractive value, best growth forecast, and most promising momentum. It's also one of the best indicators to use with the Zacks Rank.
How Style Scores Work with the Zacks Rank The Zacks Rank, which is a proprietary stock-rating model, employs earnings estimate revisions, or changes to a company's earnings expectations, to make building a winning portfolio easier.
#1 (Strong Buy) stocks have produced an unmatched +23.7% average annual return since 1988, which is more than double the S&P 500's performance over the same time frame. However, the Zacks Rank examines a ton of stocks, and there can be more than 200 companies with a Strong Buy rank, and another 600 with a #2 (Buy) rank, on any given day.
With more than 800 top-rated stocks to choose from, it can certainly feel overwhelming to pick the ones that are right for you and your investing journey.
That's where the Style Scores come in.
To have the best chance of big returns, you'll want to always consider stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B, which will give you the highest probability of success. If you're looking at stocks with a #3 (Hold) rank, it's important they have Scores of A or B as well to ensure as much upside potential as possible.
The direction of a stock's earnings estimate revisions should always be a key factor when choosing which stocks to buy, since the Scores were created to work together with the Zacks Rank.
Here's an example: a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one with Style Scores of A and B, still has a downward-trending earnings outlook, and a bigger chance its share price will decrease too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Encompass Health (EHC - Free Report) Encompass Health Corporation is a provider of integrated healthcare services. It offers facility-based patient care through its network of inpatient rehabilitation hospitals. Through its extensive network of 173 hospitals across 39 states and Puerto Rico, the company delivers high-quality, cost-effective, integrated care in the healthcare space. It provides a continuum of facility-based for its patients and their families, which will gain more prevalence as coordinated care and integrated delivery payment models, such as accountable care organizations and bundled payment arrangements.
EHC is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.
Additionally, the company could be a top pick for growth investors. EHC has a Growth Style Score of A, forecasting year-over-year earnings growth of 9.5% for the current fiscal year.
Five analysts revised their earnings estimate upwards in the last 60 days for fiscal 2026. The Zacks Consensus Estimate has increased $0.07 to $5.97 per share. EHC boasts an average earnings surprise of +9.8%.
With a solid Zacks Rank and top-tier Growth and VGM Style Scores, EHC should be on investors' short list.
The 40-bed inpatient rehabilitation hospital is a joint venture between Encompass Health and Piedmont.
, /PRNewswire/ -- Encompass Health, the nation's largest owner and operator of inpatient rehabilitation hospitals, and Piedmont, the largest healthcare system in the state of Georgia, today announced the opening of Eastside Rehabilitation Hospital in Loganville, Georgia. The 40-bed inpatient rehabilitation hospital is now accepting patients.
Eastside Rehabilitation Hospital exterior "We're pleased to once again partner with Piedmont to address the growing need for inpatient rehabilitation care in Georgia," said Ronnie Wagley, president of Encompass Health's South Atlantic region. "This new, state-of-the-art hospital provides convenient access for residents in Gwinnett County and surrounding areas, allowing them to recover from serious illness or injury closer to home."
The more than 52,000-square-foot hospital provides essential rehabilitative services that help patients recovering from strokes, brain injuries, spinal cord injuries, amputations and complex orthopedic conditions regain function and independence. Patients receive a minimum of three hours of intensive therapy five days each week, frequent physician visits and 24-hour nursing care.
"We're grateful for our partnership with Encompass Health, and I'd like to thank everyone involved for helping make this bold vision a reality," said Larry Ebert, CEO of Piedmont Eastside Medical Center. "Through this partnership, we're expanding access to our nationally recognized inpatient rehabilitation program for families in Gwinnett and surrounding counties."
Hospital amenities include all private patient rooms, a spacious therapy gym featuring state-of-the-art technologies, an activities of daily living suite, in-house dialysis suite, therapy courtyard, dining room, in-house pharmacy and dayroom areas. An interdisciplinary team of highly specialized nurses, therapists and physicians creates customized treatment plans to meet each patient's unique recovery goals.
The hospital is Encompass Health's ninth hospital in Georgia and eighth joint venture hospital with Piedmont. The joint venture partnership between Encompass Health and Piedmont also includes Rehabilitation Hospital of Newnan, Rehabilitation Hospital of Henry, Rehabilitation Hospital of Phenix City, Rehabilitation Hospital of Columbus, Rehabilitation Hospital of Atlanta, Rehabilitation Hospital of Augusta and Rehabilitation Hospital of Athens.
About Encompass Health
Encompass Health (NYSE: EHC) is the largest owner and operator of inpatient rehabilitation hospitals in the United States. With a national footprint that includes 176 hospitals in 39 states and Puerto Rico, the Company provides high-quality, compassionate rehabilitative care for patients recovering from major injuries or illnesses, using advanced technology and innovative treatments to maximize recovery. Encompass Health is recognized by Newsweek as America's Most Awarded Leader in Inpatient Rehabilitation and is ranked among Fortune's World's Most Admired Companies™ and Forbes' America's Best Companies. It is also recognized by Becker's Healthcare and Modern Healthcare as a top healthcare employer. For more information, visit encompasshealth.com, or follow us on our newsroom, X, Instagram and Facebook.
About Piedmont
Piedmont is empowering Georgians by changing healthcare. We continue to fuel Georgia's growth through safe, cost-effective, high-quality care close to home through an integrated healthcare system that provides a hassle-free, unified experience. We are a private, not-for-profit organization that for centuries has sought to make a positive difference in every life we touch in the communities we serve. Across our 2,000 physical locations we care for more than 4.5 million patients and serve communities that comprise 85 percent of Georgia's population. This includes 27 hospitals, 122 immediate care locations, 1,875 Piedmont Clinic physician practices and more than 3,900 Piedmont Clinic members. Our patients conveniently engage with Piedmont online, as they scheduled more than 657,000 online appointments and over 239,000 virtual visits. With more than 50,000 care givers we are the largest Georgia-based private employer of Georgians, who all came for the job, but stayed for the people. In 2024 and 2023, Piedmont has earned recognition from Newsweek as one of America's Greatest Workplaces for Diversity and also as one of America's Greatest Workplaces for Women. In 2022, Forbes ranked Piedmont on its list of the Best Large Employers in the United States. Piedmont provided more than $844 million in community impact in Fiscal Year 2025.
For more information, or to book your next appointment, visit piedmont.org.
Encompass Health media contact:
Polly Manuel | 205-970-5912
[email protected]
Piedmont media contact:
Megan Joseph | 678-245-1263
[email protected]
Key Takeaways Encompass Health opened Eastside Rehabilitation Hospital, its eighth joint venture with Piedmont.The 40-bed facility expands specialized rehab services for stroke, injury and orthopedic patients.EHC reported 9.1% revenue growth in Q1 2026 as capacity investments continue to pay off. Encompass Health Corporation (EHC - Free Report) continues to expand its inpatient rehabilitation footprint with the opening of Eastside Rehabilitation Hospital in Loganville, GA. The more than 52,000-square-foot, 40-bed facility, developed through a joint venture with Piedmont Healthcare, expands the company's capacity in eastern Georgia.
The opening marks Encompass Health's ninth inpatient rehabilitation hospital in the state and its eighth joint venture with Piedmont. The hospital will provide specialized rehabilitation services for patients recovering from strokes, brain injuries, spinal cord injuries, amputations and complex orthopedic conditions.
Equipped with advanced rehabilitation technologies and specialized treatment areas, the facility is designed to support patients with complex recovery needs. The partnership with Piedmont Healthcare, one of Georgia's leading health systems, strengthens Encompass Health's referral network and should support patient volumes and occupancy growth while further solidifying the company's presence in the market.
The opening aligns with Encompass Health's broader expansion strategy. The company plans to open six to 10 de novo hospitals and add 80-120 beds annually through 2027 to meet rising demand for inpatient rehabilitation services. Consistent with this objective, Encompass Health opened a 49-bed rehabilitation hospital in Irmo, SC, and added 44 beds across existing facilities during the first quarter of 2026.
These investments are already contributing to growth. In the first quarter of 2026, net operating revenues increased 9.1% year over year to $1.59 billion, while total discharges rose 4.3%. Net patient revenue per discharge improved 3.7%, reflecting favorable pricing trends. Supported by a trailing 12-month return on invested capital of 10.1%, well above the industry average of 6.7%, the latest expansion reinforces Encompass Health's long-term growth strategy and its ability to generate value from ongoing capacity investments.
EHC’s Stock Price PerformanceShares of Encompass Health have gained 3.5% over the past three month, outperforming the industry’s 0.1% decline over the same period.
Image Source: Zacks Investment Research
EHC’s Zacks Rank & Key PicksEHC currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader Medical space are The Pennant Group, Inc. (PNTG - Free Report) , Aveanna Healthcare Holdings Inc. (AVAH - Free Report) and DaVita Inc. (DVA - Free Report) , each carryinga Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for The Pennant Group’s 2026 earnings is pegged at $1.35 per share, indicating 14.4% year-over-year growth. PNTG beat earnings estimates in each of the trailing four quarters, with the average surprise being 5.1%. The consensus estimate for 2026 revenues is pinned at $1.17 billion, implying 23.3% year-over-year growth.
The Zacks Consensus Estimate for Aveanna Healthcare’s 2026 earnings is pegged at 66 cents per share, which has witnessed two upward revisions in the past 30 days, with no movement in the opposite direction. AVAH beat earnings estimates in each of the trailing four quarters, with the average surprise being 129.4%. The consensus estimate for 2026 revenues is pinned at $2.56 billion, implying 5% year-over-year growth.
The Zacks Consensus Estimate for DaVita’s 2026 earnings is pegged at $15.07 per share, indicating 39.8% year-over-year growth. DVA beat earnings estimates in three of the trailing four quarters and missed once, with the average surprise being 2.4%. The consensus estimate for 2026 revenues is pinned at $14.3 billion, implying 4.8% year-over-year growth.
Casey's (CASY) hit an all-time high a month ago, though shares pulled back over 15% as the company readies to report earnings after Tuesday's closing bell. Rick Ducat helps investors digest the price action by looking at key support and resistance trends in the chart.
That wraps up our initial coverage of Casey’s General Stores’ Q4 results. Thank you for stopping by!
The company’s Q4 earnings call will be on June 10, 2026, at 8:30 AM ET.
Jun 9, 2026 at 4:49 PM EDT
With Q4 in the books, attention shifts to a packed catalyst calendar that will determine whether Casey’s can defend its 73.94% one-year run.
Earnings call: June 10, 2026, at 8:30 AM ET. Investors will listen for color on the FY2027 8%-10% EBITDA guidance, CEFCO integration, and the Q4 fuel margin of 46.9 cents per gallon. Investor Day: On June 24, management will unveil the next three-year strategic plan. Capital returns: Dividend record date August 1, 2026, plus the freshly expanded $1 billion buyback. Q1 FY2027: Historically reported in early September. Jun 9, 2026 at 4:47 PM EDT
The numbers are official. Casey’s General Stores (NASDAQ:CASY | CASY Price Prediction) cleared both top and bottom-line consensus by wide margins in Q4 FY2026, extending its four-quarter beat streak.
Metric Expected Actual Beat/Miss % Diff EPS $3.32 $4.37 Beat +31.6% Revenue $4.34B $4.57B Beat +5.3% EPS rose 66.2% year-over-year, fueled by inside same-store sales of +5.5% and a 29.1% jump in fuel gross profit.
Shares last traded at $761.18, with a +1.27% gain in the regular session. Polymarket’s beat probability slid from 82% pre-release to 72.5% after, hinting traders are wrestling with the FY2027 guidance reset rather than the headline beat.
Jun 9, 2026 at 4:43 PM EDT
With earnings now reported, the thesis hinges on one question: Is the 2% post-earnings rally sustainable, or did management’s FY2027 guidance reset expectations lower?
Bull Case Q4 EPS of $4.37 jumped 66.2% YoY, with same-store sales accelerating to 5.5% and margins expanding to 42.4%. Fuel gross profit rose 29.1% at 46.9 cents per gallon. Dividend raised 14% (27th straight hike) with a $1 billion buyback authorization. Bear Case FY2027 EBITDA growth is guided to 8-10%, down sharply from FY2026’s 18-20% trajectory. Capex jumps to roughly $800 million versus $655.92 million in FY2026, pressuring free cash flow. Opex climbs 5-7%, with CEFCO integration execution pending. Shares trade at a 43x forward P/E after a 73.94% one-year run, leaving little room for disappointment. The June 24 Investor Day becomes the next catalyst to resolve the debate.
Jun 9, 2026 at 4:39 PM EDT
The headline Q4 results were excellent, but investors will likely spend most of tonight focused on Casey’s FY2027 outlook.
Management guided to 8%-10% EBITDA growth, below the 18%-20% EBITDA growth expected for FY2026. While some slowdown was anticipated following the large CEFCO acquisition, the guidance suggests investors may need to temper expectations for another year of outsized growth.
The key question heading into Casey’s June 24 Investor Day is whether management is once again setting a conservative baseline that it can raise throughout the year, a pattern the company has followed repeatedly in recent years.
Jun 9, 2026 at 4:34 PM EDT
Casey’s General Stores just reported a strong Q4, delivering sizable beats on both revenue and earnings while providing its first look at FY2027 guidance.
Revenue: $4.57B vs. $4.34B expected ✅ Adjusted EPS: $4.37 vs. $3.32 expected ✅ FY2027 Outlook:
Inside Same-Store Sales: 2% to 5% Inside Margin: Above 42% Same-Store Fuel Gallons Sold: -1% to +1% Total OpEx Growth: 5% to 7% EBITDA Growth: 8% to 10% New Stores: At least 120 CapEx: Approximately $800 million Quick Read:
Casey’s delivered a monster quarter, beating EPS expectations by 31.6% and revenue expectations by 5.3%.
The company’s core prepared foods and inside-sales business remains healthy, with management guiding for 2% to 5% same-store sales growth and inside margins above 42%.
The biggest debate will be FY2027 guidance. Management is targeting 8% to 10% EBITDA growth after guiding to 18% to 20% growth in FY2026, which could spark questions about whether growth is normalizing following the CEFCO acquisition.
Jun 9, 2026 at 3:54 PM EDT
While fuel generates the majority of Casey’s revenue, investors increasingly view prepared foods as the company’s most important growth driver.
Prepared foods account for a much smaller share of sales but carry significantly higher margins, with pizza remaining one of Casey’s strongest differentiators. One analyst recently described Casey’s as “a pizza company that also happens to be a gas station,” highlighting how prepared foods have helped the company drive profitability even as fuel margins fluctuate.
That strategy has helped Casey’s grow from a small Iowa gas station chain into nearly 3,000 stores across the United States. The company is now the third-largest convenience store chain in the country and the fifth-largest pizza seller by volume.
The strategy also plays a major role in Casey’s acquisition playbook. Management has historically acquired lower-margin convenience stores and improved performance by expanding prepared food offerings and leveraging its distribution network.
Investors will be watching tonight’s Q4 report for updates on inside same-store sales, prepared food growth, and margins to see whether this key growth engine continues to gain momentum.
Jun 9, 2026 at 3:49 PM EDT
Casey’s growth strategy has shifted meaningfully over time. While the company historically expanded through new store openings, acquisitions now play a much larger role in the growth story.
The company’s recent $1.1 billion acquisition of CEFCO added 198 stores across four southern states and marked the largest acquisition in Casey’s history. Management’s ability to improve acquired stores through prepared food offerings and operational efficiencies has become a key part of the investment thesis.
As investors look toward FY2027 guidance and the June 24 Investor Day, updates on acquisition integration, new-store growth, and future expansion plans could be just as important as the quarterly earnings results themselves.
Jun 9, 2026 at 3:44 PM EDT
Track Record: Under-Promise, Over-Deliver CEO Darren Rebelez has built credibility by setting achievable targets and clearing them. EPS surprises across the last four quarters averaged in double digits: 36.98%, 13.95%, 6.26%, and 17.38%. Revenue beat in three of those four quarters, with only Q3 FY2026 missing by 3.14%.
Guidance accuracy skews conservative. FY2026 EBITDA growth started at 10-12%, was lifted to 15-17% after Q2, then to 18-20% after Q3. Rebelez’s tone stays uniformly positive, framing Q3 as “another successful quarter”. Jim Cramer recently noted Casey’s “has beaten the earnings expectations for 11 straight quarters by an average of 18%”.
The market doesn’t always reward beats: shares slid 5.34% on the day of the Q2 FY2026 release despite topping the Street.
Jun 9, 2026 at 3:37 PM EDT
The FY2027 outlook from Casey’s General Stores (NASDAQ:CASY) will likely drive the stock’s reaction after tonight’s Q4 earnings. Management has a clear pattern of giving conservative initial guidance, then raising. As an example, FY2026 EBITDA growth started at 10%-12%, climbed to 15%-17%, and now sits at 18%-20%.
Wall Street wants guidance on five metrics:
FY2027 EBITDA growth Inside same-store sales Inside margin trajectory off the 42.2% Q3 level Fuel margin sustainability New-store cadence beyond the 500-store three-year plan Bullish setup: Initial FY2027 EBITDA growth of 10%+ off the elevated base, inside comps above 3%, and a CEFCO margin uplift quantified ahead of the June 24 Investor Day.
Casey’s General Stores (NASDAQ:CASY) heads into the after-bell release with Polymarket pricing in an 82% probability of a beat.
Bull Case Four consecutive EPS beats, with Q3 surprising by 17.38%. Management raised FY26 EBITDA growth guidance twice, now 18-20%. Inside margin expanded ~130 bps to 42.2%; fuel margins held near 41 cpg. Analyst target sits at $842.81 with 12 buys, zero sells. Bear Case Q3 revenue missed by 3.14%, with sales up just 0.3% YoY. Shares trade at a forward P/E of 37.6 after a 69.92% one-year run. Q4 is seasonally smallest; prior-year EPS was just $2.63, leaving little cushion. CEO Rebelez sold 7,300 shares in March, and fuel margin sustainability remains a question. Jun 9, 2026 at 3:09 PM EDT
Casey’s reports Q4 earnings tonight at 4;30 PM ET, but investors may be just as focused on what the results mean for the company’s upcoming Investor Day on June 24 in New York. Management is expected to unveil its next three-year strategic plan, making tonight’s report an important setup event.
A strong quarter, reaffirmation of the company’s long-term 18-20% EBITDA growth framework, and a constructive FY2027 outlook would give CEO Darren Rebelez momentum heading into Investor Day. In that scenario, management could enter the event with wind in its sails, and investors would focus on the next phase of growth.
On the other hand, a softer quarter or weaker guidance could raise questions about whether Casey’s can deliver on its long-term targets. With shares already pulling back from recent highs, investors will be watching closely to see whether tonight’s results strengthen the growth narrative or reinforce concerns that the slowdown is more than just a temporary pause.
This live blog is being updated by Thomas Richmond, a 24/7 Wall St. contributor. You’ll get expert analysis of Casey’s General Stores’ earnings. Simply stay on this page, and new updates will appear below automatically. We expect CASY’s earnings to be released shortly after 4:30 p.m. ET.
Casey’s General Stores (NASDAQ: CASY) reports fiscal fourth-quarter results today, June 9, after the market close at 4:30 PM ET. The company’s conference call will be tomorrow at 8:30 AM ET. After a blowout Q3 and a raised full-year outlook, this report closes the book on a banner fiscal 2026.
A Banner Year Meets High Expectations Q3 was a big quarter, with Casey’s posting diluted EPS of $3.49 against a $2.9733 consensus, a 17.38% beat. Net income jumped 49.34% to $130 million. Inside same-store sales rose 4.0%, while inside margin expanded roughly 130 basis points to 42.2%, and fuel margin hit 41.0 cents per gallon versus 36.4 a year earlier.
Management raised full-year EBITDA growth guidance to 18% to 20%, up from a 10-12% start. CASY is up 36.21% year-to-date and 69.92% over the past year, though the stock has cooled 12.55% in the last month as Q4 expectations crept higher.
The Bar to Clear Metric Prior Year Q4 (FY25) FY25 Full Year Diluted EPS $2.63 $14.64 Revenue $3.99B $15.94B Fuel margin (cents/gal) 37.6 n/a Inside same-store sales +1.7% n/a Margins, Mix, and the Integration Test Three key stories will likely be the main focus of this report. First, inside execution. Same-store sales need to land in the guided 3.5% to 4.5% range, and CFO Steve Bramlage told analysts that year-to-date SSS was tracking around 3.8%, with Q4 expected to be “pretty close” to that pace. I’ll be watching whether inside margin holds the 42.2% level, especially as non-alcoholic beverages and nicotine alternatives (vapor up 12%, pouches up 31%) keep mix-shifting higher.
Second, fuel. The 41-cent Q3 number was strong, and CEO Darren Rebelez framed volatility from the Iran situation as a familiar pattern, citing the Russia-Ukraine precedent where margins compressed and then ran above $0.40 per gallon for three straight quarters. The Q4 comp is 37.6 cents, so even a modest hold would read as growth.
Third, the CEFCO/Fikes integration. CEO Bramlage said synergies are tracking “slightly ahead”, with 50 additional kitchen conversions due by year-end and prepared-food synergies (about 40% of the total) ramping into FY27. Investors will also watch the store count update toward the stated 500-store three-year plan and any updates on the company’s 27th straight dividend hike. Polymarket traders price an 83.5% probability of a beat.
ANKENY, Iowa--(BUSINESS WIRE)--Casey's General Stores, Inc., ("Casey's" or the "Company") (Nasdaq symbol CASY) one of the leading convenience store chains in the United States, today announced financial results for the three months and year ended April 30, 2026. Fourth Quarter 2026 Key Highlights Diluted EPS of $4.37, up 66.2% from the same period a year ago. Net income was $162.7 million, up 65.5%, and EBITDA1 was $350.3 million, up 33.2%, from the same period a year ago. Inside same-store sal.
Casey's General Stores (CASY - Free Report) came out with quarterly earnings of $4.37 per share, beating the Zacks Consensus Estimate of $3.36 per share. This compares to earnings of $2.63 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +30.01%. A quarter ago, it was expected that this convenience store chain would post earnings of $3.01 per share when it actually produced earnings of $3.49, delivering a surprise of +15.95%.
Over the last four quarters, the company has surpassed consensus EPS estimates four times.
Casey's, which belongs to the Zacks Retail - Convenience Stores industry, posted revenues of $4.57 billion for the quarter ended April 2026, surpassing the Zacks Consensus Estimate by 4.02%. This compares to year-ago revenues of $3.99 billion. The company has topped consensus revenue estimates two times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Casey's shares have added about 36% since the beginning of the year versus the S&P 500's gain of 8.2%.
What's Next for Casey's?While Casey's has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Casey's was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $6.27 on $5.3 billion in revenues for the coming quarter and $20.37 on $19.47 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Retail - Convenience Stores is currently in the top 3% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Another stock from the broader Zacks Retail-Wholesale sector, Levi Strauss (LEVI - Free Report) , has yet to report results for the quarter ended May 2026.
This jeans maker is expected to post quarterly earnings of $0.24 per share in its upcoming report, which represents a year-over-year change of +9.1%. The consensus EPS estimate for the quarter has been revised 0.5% higher over the last 30 days to the current level.
Levi Strauss' revenues are expected to be $1.52 billion, up 4.8% from the year-ago quarter.
For the quarter ended April 2026, Casey's General Stores (CASY - Free Report) reported revenue of $4.57 billion, up 14.5% over the same period last year. EPS came in at $4.37, compared to $2.63 in the year-ago quarter.
The reported revenue represents a surprise of +4.02% over the Zacks Consensus Estimate of $4.4 billion. With the consensus EPS estimate being $3.36, the EPS surprise was +30.01%.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how Casey's performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Same-store sales - Grocery & General Merchandise - YoY change: 5.1% versus the three-analyst average estimate of 3.9%.Inside same-store sales: 5.5% compared to the 4.5% average estimate based on three analysts.Number of Stores (EOP): 2,944 compared to the 2,949 average estimate based on three analysts.Number of Fuel gallons sold: 848.33 million compared to the 834.98 million average estimate based on three analysts.Same-store sales - Prepared Food & Dispensed Beverage - YoY change: 6.6% versus 5.1% estimated by three analysts on average.Same-store sales - Fuel gallons - YoY change: 1.5% versus 0.1% estimated by three analysts on average.Number of Stores (BOP): 2,904 compared to the 2,924 average estimate based on two analysts.Net Sales- Fuel: $2.88 billion versus $2.68 billion estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +18.3% change.Net Sales- Other: $169.04 million versus the three-analyst average estimate of $142.48 million. The reported number represents a year-over-year change of +20.6%.Net Sales- Prepared Food & Dispensed Beverage: $427.62 million versus $417.03 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +9.2% change.Net Sales- Grocery & General Merchandise: $1.09 billion versus the three-analyst average estimate of $1.08 billion. The reported number represents a year-over-year change of +6.7%.Gross Profit- Grocery & General Merchandise: $389.19 million compared to the $384.85 million average estimate based on three analysts.View all Key Company Metrics for Casey's here>>>
Shares of Casey's have returned -14.3% over the past month versus the Zacks S&P 500 composite's +0.2% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
Casey’s General Stores Inc. (NASDAQ:CASY) shares are trending on Wednesday.
CASY shares climbed 2.87% to $783 after the bell on Tuesday after the Iowa-based convenience chain reported fourth-quarter results where it topped both earnings per share and revenue analyst estimates.
Casey’s announced financial results for the three months and year ended Apr. 30.
EPS Beat By 31.63%For the fourth quarter, EPS were $4.37, exceeding the analyst estimate of $3.32 by 31.63%. Revenue for the quarter reached $4.57 billion, topping the expected $4.35 billion by 5.06%.
Net income increased 65.5% year over year to $162.7 million. EBITDA also rose 33.2%, reaching $350.3 million.
Inside same-store sales grew 5.5%, driven by prepared foods and non-alcoholic beverages. Fuel margin expanded to 46.9 cents per gallon from 37.6 cents a year ago.
What Does Full-Year Data SayFor fiscal 2026, diluted EPS reached $19.16, up 30.9%, with EBITDA nearing $1.5 billion. The Board raised the quarterly dividend 14% to $0.65 per share, marking the company’s 27th consecutive annual dividend increase. It also authorized a $1 billion share repurchase program.
OutlookFor fiscal 2027, Casey’s expects EBITDA to grow 8%–10% and inside same-store sales to rise 2%–5%.
Analysts estimate first-quarter EPS of $6.42 on revenue of $5.12 billion.
Trading Metrics, Technical AnalysisCasey’s General has a market capitalization of $28.13 billion, a 52-week high of $901 and a 52-week low of $481.30.
The Relative Strength Index (RSI) of CASY stands at 40.05.
UBS maintained CASY with a Neutral rating and raised its price target to $805 from $706 on Jun. 3.
The large-cap stock has gained 55.28% over the past 12 months.
Currently, CASY is trading at about 66.7% of its 52-week range, placing it near its 52-week high.
Price Action: The stock closed the regular session up 1.27% at $761.18, according to Benzinga Pro.
Benzinga’s Edge Stock Rankings indicate that CASY is experiencing short-term consolidation along with medium and long-term upward movement.
Photo: Andriy Blokhin / Shutterstock.com
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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Casey’s stock is building positive momentum. What’s pushing CASY stock higher? Casey’s reported earnings per share of $4.37, beating the consensus estimate of $3.31. In addition, it reported revenue of $4.57 billion, beating the consensus estimate of $4.30 billion.
Inside the StoreInside same-store sales were up 5.5% compared to the prior year — and 7.4% on a two-year stack basis — with an inside margin of 42.4%. Total inside gross profit increased 10.5% to $643.4 million compared to the prior year, led by strong performance in prepared foods and non-alcoholic beverages.
FuelFuel same-store gallons were up 1.5% compared to the prior year, with a fuel margin of 46.9 cents per gallon. Total fuel gross profit increased 29.1% to $397.4 million compared to the prior year.
Capital ReturnsThe company repurchased approximately $63 million of shares during the quarter. On June 4, the Board of Directors authorized an expansion of its share repurchase program to a total of $1 billion, with no expiration date. The Board also voted to increase the quarterly dividend by 14% to $0.65 per share — the 27th consecutive year of dividend increases — payable August 14, 2026.
Balance SheetAt April 30, the company had approximately $1.4 billion in available liquidity, consisting of approximately $523 million in cash and approximately $900 million in available borrowing capacity on existing lines of credit.
“Casey’s delivered another record fiscal year as our team closed out the three-year strategic plan on an extremely high note,” said Darren Rebelez, President and CEO.
Casey’s Shares Edge HigherCASY Price Action: At the time of publication, Casey’s stock is trading 1.42% higher at $772.00, according to data from Benzinga Pro.
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Casey's General Stores, Inc. delivered an exceptional Q4 and FY2026, with Inside same store sales up 5.5% and EBITDA growth of 33%. CASY's strong business model, high margins, and expansion plans support its status as a compounder with durable moats and recession resilience. Despite robust performance and positive 2027 outlook, CASY's forward P/E of 41x and EV/EBITDA of 20.9x signal a steep premium versus peers.
U.S. stocks were lower, with the Dow Jones index falling over 150 points on Wednesday.
Shares of Caseys General Stores Inc (NASDAQ:CASY) rose sharply following strong quarterly earnings.
For the fourth quarter, EPS were $4.37, exceeding the analyst estimate of $3.32 by 31.63%. Revenue for the quarter reached $4.57 billion, topping the expected $4.35 billion by 5.06%.
Caseys shares jumped 14.4% to $871.24 on Wednesday.
Here are some other big stocks recording gins in today’s session.
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U.S. stocks were lower, with the Dow Jones index falling over 150 points on Wednesday.
Shares of Caseys General Stores Inc (NASDAQ:CASY) rose sharply following strong quarterly earnings.
For the fourth quarter, EPS were $4.37, exceeding the analyst estimate of $3.32 by 31.63%. Revenue for the quarter reached $4.57 billion, topping the expected $4.35 billion by 5.06%.
Caseys shares jumped 14.4% to $871.24 on Wednesday.
Here are some other big stocks recording gins in today’s session.
Photo via Shutterstock
Market News and Data brought to you by Benzinga APIs
Casey's General Stores: Is a Stock Split on the Horizon?Casey's General Stores NASDAQ: CASY reported record fiscal 2026 results, with executives highlighting strong in-store sales, higher fuel profitability and continued store expansion during the company’s fourth-quarter earnings call.
Chairman, President and Chief Executive Officer Darren Rebelez said the convenience store operator delivered its highest-ever diluted earnings per share, net income and EBITDA for the fiscal year ended April 30, 2026. Diluted earnings per share rose 31% from the prior year to $19.16, while net income increased 31% to $714 million. EBITDA reached nearly $1.5 billion, up 23% year over year.
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The Quiet Retail Compounder Investors Keep Buying on Every Dip“Our fiscal 2026 results illustrate the durability and strength of Casey's advantage business model,” Rebelez said. “We're confident in our ability to deliver results in a variety of economic climates.”
Fourth-Quarter Earnings Jump on Inside Sales and Fuel Margins Chief Financial Officer Steve Bramlage said fourth-quarter diluted earnings per share were $4.37, up 66% from the prior year. Net income increased 65.5% to $162.7 million, while EBITDA rose 33.2% to $350.3 million.
3 Reasons Casey’s General Stores Will Continue Trending HigherTotal inside sales in the quarter increased 7.4% to more than $1.5 billion. Inside gross profit dollars rose $61 million, or 10.5%, as the average inside margin reached 42.4%.
Prepared Food and Dispensed Beverage sales increased 9.2% to $428 million, while same-store sales in the category rose 6.6%. The segment’s average margin improved 170 basis points from a year earlier to 59.5%. Bramlage said whole pizzas, appetizers and sides performed well, while improved waste management was the primary driver of margin expansion. Lower LIFO charges and a modest decline in cheese costs also helped margins.
Grocery and General Merchandise sales increased 6.7% to $1.09 billion, with same-store sales up 5.1%. The category’s average margin increased 90 basis points to 35.7%. Bramlage said sales were particularly strong in non-alcoholic beverages, especially energy drinks, and that cost of goods management and product mix, including nicotine and nicotine alternatives, supported margin gains.
On fuel, same-store gallons sold increased 1.5% in the fourth quarter. Fuel margin was $0.469 per gallon, up about $0.093 from the prior year. Retail fuel sales increased $446 million, driven mainly by a 14.1% increase in the average retail fuel price to $3.40 and a 3.6% increase in total gallons sold to 848 million.
Full-Year Sales Growth Led by Pizza, Beverages and Fuel For the full fiscal year, total inside sales grew 10.2%, while inside same-store sales increased 4.2%, or 7% on a two-year stack. Prepared Food and Dispensed Beverage sales rose 10.2%, with same-store sales up 5.2%. Grocery and General Merchandise sales also increased 10.1%, with same-store sales up 3.9%.
Rebelez said whole pizzas and non-alcoholic beverages helped drive the results. He pointed to product initiatives including limited-time offers, specialty pizza expansion, a new frozen carbonated beverage platform, and the rollout of wings. Casey’s also partnered with Monster on a Red, White & Blue Razz flavor sold almost exclusively at Casey’s from late January to early May.
Fuel gross profit increased 21% for the year, with total fuel gallons sold up 10% and fuel margin averaging $0.426 per gallon.
Rebelez also said Casey’s operations team continued to control costs. Same-store operating expenses, excluding credit card fees, increased 3.7% for the year, helped by a 0.2% reduction in same-store labor hours. He said guest satisfaction and team member engagement were at or near all-time highs.
Balance Sheet, Dividend and Buybacks Bramlage said Casey’s balance sheet remains in “excellent condition,” with total available liquidity of $1.4 billion as of April 30. The company’s debt-to-EBITDA ratio, calculated under its credit facilities, was 1.5 times.
In the fourth quarter, Casey’s generated $398 million in operating cash flow and spent $191 million on property, plant and equipment, resulting in $207 million in free cash flow. Full-year free cash flow totaled $722 million, including an approximately $100 million cash tax benefit related to capital spending from the One Big Beautiful Bill, Bramlage said.
Return on invested capital finished the fiscal year at 12.7%, up 120 basis points from the prior year. Bramlage said that was the company’s highest return on invested capital since a tax-aided 2018.
The board approved a 14% dividend increase to $0.65 per share, marking the 27th consecutive year of dividend increases. Casey’s repurchased approximately $63 million of shares during the quarter, and the board expanded the company’s share repurchase program to up to $1 billion. Bramlage said Casey’s anticipates approximately $200 million in share repurchases in fiscal 2027.
Fiscal 2027 Outlook Calls for EBITDA Growth For fiscal 2027, Casey’s expects inside same-store sales to increase 2% to 5%, with inside margin above 42%. Same-store fuel gallons sold are expected to range from down 1% to up 1%. Total operating expenses are expected to increase approximately 5% to 7%.
The company expects EBITDA to grow 8% to 10%, which Bramlage said would imply a 35% increase on a two-year stack at the midpoint of the range. Casey’s expects to open at least 120 stores in fiscal 2027 through an even mix of acquisitions and new store construction.
Other fiscal 2027 expectations include:
Net interest expense of approximately $95 million. Depreciation and amortization of approximately $490 million. Purchases of property, plant and equipment of approximately $800 million, including costs to convert the majority of CEFCO stores to Casey’s. A tax rate of approximately 24% to 26%. Bramlage said Casey’s is not providing guidance for fuel margin per gallon or earnings per share. For modeling purposes, the EBITDA outlook is based on a mid-40-cents-per-gallon fuel margin, along with the other guidance assumptions.
Executives Discuss Fuel, Wings and Store Expansion During the question-and-answer session, Rebelez said fuel margins benefited from volatility in wholesale fuel costs during the quarter. He said the path of fuel prices was more uneven than in some prior periods, which allowed margins to widen at certain points.
Asked about consumer behavior, Rebelez said consumers are “hanging in there,” though they may be more discerning. He said Casey’s is seeing growth across income cohorts, with somewhat less growth among lower-income consumers. At the pump, he said higher fuel prices are leading to modest changes, including lower premium fuel sales, higher ethanol-blended fuel sales and smaller gallons per transaction. He also said gallons redeemed through Casey’s Rewards were up 23% in the quarter.
Rebelez said wings are performing well as Casey’s expands the offering, with guests ordering them both alongside pizza and as a standalone item. He said customers who order wings on their own have increased their Prepared Food order frequency by 30%, and whole pizza volume in stores selling wings remains up in the high single digits.
On store growth, Rebelez said the company’s target of at least 120 new stores in fiscal 2027 represents a return to Casey’s typical growth algorithm of about 4% new units annually. Bramlage said the company remains bullish on acquisition opportunities, citing a fragmented convenience store industry with many small operators under pressure.
Rebelez also said Casey’s completed a three-year strategic plan built around accelerating the food business, increasing unit count and improving operational efficiency. Over the plan period, the company added more than 500 units, exceeding its original goal of 350, and reduced same-store labor hours by approximately 5% while improving turnover by more than 70 percentage points.
About Casey's General Stores NASDAQ: CASYCasey's General Stores, Inc NASDAQ: CASY is a U.S.-based convenience store chain that operates retail fuel stations and food-focused convenience outlets. Founded in 1959 in Boone, Iowa, the company has grown from a single neighborhood store into a regional operator known for combining traditional convenience retailing—fuel, packaged goods and tobacco—with a larger emphasis on fresh and prepared foods.
The company's stores typically offer gasoline and diesel alongside a range of grocery essentials, grab-and-go items and made-to-order foodservice.
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].
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Casey's General (CASY) is experiencing significant growth following a robust Q4 report for FY26, which included promising targets for FY27, an expansion of its
Casey's General Stores (CASY 1.59%) stock jumped 15.6% through 11:40 a.m. ET Wednesday, after reporting better than expected earnings last night.
Heading into the company's fiscal Q4 2026 report, analysts predicted Casey's would earn $3.31 per share on $4.2 billion in quarterly sales. In fact, Casey's reported $4.37 per share in profit on nearly $4.6 billion in sales.
Image source: Getty Images.
Casey's Q4 earnings Casey's same-store sales jumped 5.5% "inside" -- meaning not counting fuel sales -- and fuel sales increased 1.5% by volume. Profits were higher inside than outside, but overall, $4.37 per share in quarterly earnings translated into a 66.2% year-over-year increase in GAAP profits.
Q4 was, of course, the final quarter of Casey's fiscal year, so let's look next at the full-year numbers: In fiscal 2026, Casey's grew its sales 10.7%, and grew earnings 30.9% to $19.16 per share. Inside same-store sales were up 4.2% for the year, which means that sales growth accelerated in the year's final quarter (hitting the aforementioned 5.5%).
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What's next for Casey's stock So Casey's got momentum as it exits fiscal 2026. Now, what does fiscal 2027 look like?
Turning to guidance, it seems we're looking at something of a slowdown, with inside same-store sales predicted to range from 2% to 5%, and fuel sales (again, by volume, not dollars) roughly flat year over year.
Now here's the bad news: Analysts polled by Yahoo! Finance are expecting Casey's revenue to grow 9% this year. On the one hand, that's a bit slower than fiscal 2026's growth rate. On the other hand, it's well above the same-store sales growth Casey's envisions. High gas prices could help Casey's hit the analyst target, but if the Hormuz crisis resolves and gas prices fall, a 2027 earnings miss is certainly possible.
Rich Smith has no position in any of the stocks mentioned. The Motley Fool recommends Casey's General Stores. The Motley Fool has a disclosure policy.
Casey's General Stores Inc (CASY) Q4 2026 Earnings Call Highlights: Record Profits and Strategic Expansion Plans Casey's General Stores Inc (CASY) reports a 31% increase in net income and outlines ambitious growth strategies for fiscal 2027. Summary
Diluted Earnings Per Share: $19.16 for the fiscal year, a 31% increase over the prior year.Net Income: $714 million, a 31% increase over the prior year.EBITDA: Nearly $1.5 billion, a 23% increase from the prior year.Total Inside Sales Growth: 10.2% for the fiscal year.Inside Same-Store Sales Growth: 4.2% for the fiscal year.Inside Margin: Expanded 70 basis points to 42.2% year-over-year.Fuel Gross Profit: Up 21% with a fuel margin averaging $0.42 per gallon.Same-Store Operating Expenses: Up 3.7% for the year, excluding credit card fees.Fourth Quarter Diluted Earnings Per Share: $4.37, a 66% increase from the prior year.Fourth Quarter Total Inside Sales: Rose 7.4% to over $1.5 billion.Fourth Quarter Inside Margin: 42.4%.Fourth Quarter Net Income: $162.7 million, a 65.5% increase from the prior year.Fourth Quarter EBITDA: $350.3 million, a 33.2% increase.Total Available Liquidity: $1.4 billion as of April 30th.Free Cash Flow for Fiscal Year: $722 million.Return on Invested Capital: 12.7%, up 120 basis points from the prior year.Dividend Increase: 14% to $0.65 per share.Share Repurchase: Approximately $63 million repurchased during the quarter.Store Growth: Opened 80 stores in fiscal 2026, with 40 acquisitions and 40 new builds.
Release Date: June 10, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points Casey's General Stores Inc CASY achieved the highest ever diluted earnings per share at $19.16 and net income of $714 million, both representing a 31% increase over the prior year.The company generated nearly $1.5 billion in EBITDA, marking its highest ever, with a 23% increase from the prior year.Total inside sales grew by 10.2% during the year, with inside same-store sales up 4.2% or 7% on a two-year stack basis.Fuel gross profit increased by 21%, with total fuel gallons sold up 10% and fuel margin averaging 42.06 cents per gallon.Casey's General Stores Inc (CASY) plans to open at least 120 stores in fiscal 2027 through a mix of mergers and acquisitions and new store construction. Negative Points Same-store operating expenses, excluding credit card fees, were up 3.7% for the year, impacted by a reduction of same-store labor hours of 0.2%.Total operating expenses increased by 10.1% or $67 million in the fourth quarter, with approximately 2% due to operating 40 more stores than the prior year.Higher performance-based variable incentive compensation and discretionary charitable contributions contributed to approximately 4% of the operating expense increase.The effective tax rate for the quarter was 23.7%, up from 23% in the prior year due to an increase in unfavorable permanent differences.The company anticipates first-quarter operating expenses to be up high single-digits, partially due to higher credit card fees from increased retail fuel prices. Q & A Highlights Q: Darren, regarding the fuel side of the business, has the historical relationship between higher RBOB prices and fuel margin compression changed?
A: Darren Rebelez, CEO: The dynamics have been different this quarter due to volatility. Retailers tend to hold prices steady despite fluctuations, which allowed us to capture more margin during volatile periods.
Q: Can you discuss the durability of the inside margin progression, particularly in prepared food and grocery?
A: Steve Bramlage, CFO: Structural tailwinds, such as the shift to nicotine alternatives and energy drinks, are benefiting margins. Prepared food margins are more commodity-driven, but we see opportunities in waste reduction and product mix.
Q: How is consumer behavior affecting your business, especially with higher gas prices?
A: Darren Rebelez, CEO: Consumers are being more discerning, but we're seeing growth across all income cohorts. Fuel-related behaviors are minor, and our rewards program is helping offset fuel costs for consumers.
Q: Can you provide insights on the rollout of wings and their impact on sales?
A: Darren Rebelez, CEO: Wings have performed well, creating an incremental occasion. They are not cannibalizing pizza sales and have increased prepared food order frequency by 30% where available.
Q: What is your outlook on store growth and acquisition opportunities?
A: Darren Rebelez, CEO: We're targeting 120 new units this year, aligning with our growth algorithm. Steve Bramlage, CFO: The M&A environment is favorable, with many small players under pressure, providing consolidation opportunities.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
Key Takeaways CASY beat Q4 estimates with $4.37 EPS on $4.57B revenues; net income rose 65.5%.CASY inside margin hit 42.4%, up ~120 bps, helped by cost control, lower waste and mix shift.CASY guides FY2027 EBITDA growth 8%-10% and at least 120 store openings; May trends track guidance. Casey’s General Stores, Inc. (CASY - Free Report) used its fourth-quarter fiscal 2026 call to make a broader point than a simple earnings beat. Management framed the fiscal year as proof that its inside sales strategy, fuel discipline and store expansion model can keep working in a volatile environment.
That message mattered because the company also paired record annual earnings with a fiscal 2027 outlook that calls for continued EBITDA growth, more unit expansion and inside margins staying above 42%.
CASY Leans on Inside Sales StrengthCasey’s reported fourth-quarter earnings per share of $4.37, topping the Zacks Consensus Estimate of $3.36 by 30.1%. Revenues were reported at $4.57 billion, which beat the Zacks Consensus Estimate of $4.4 billion by 4%. The press release said net income rose 65.5% to $162.7 million and EBITDA climbed 33.2% to $350.3 million.
Management put more weight on the quality of that growth. President and CEO Darren Rebelez said fiscal 2026 delivered the company’s highest-ever earnings per share and net income, while producing strong inside sales and margin expansion.
Chief financial officer Stephen Bramlage said fourth-quarter inside sales rose 7.4% to more than $1.5 billion, with total inside gross profit up $61 million. Same-store prepared food and dispensed beverage sales increased 6.6%, while grocery and general merchandise same-store sales rose 5.1%.
Casey’s Sees Margin Tailwinds HoldingThe company’s inside margin reached 42.4% in the quarter, up about 120 basis points from a year earlier. Management tied that improvement to cost of goods management, lower waste and a favorable category mix.
In Q&A, Bramlage argued some of those gains are structural rather than temporary. He pointed to the mix shift from combustible cigarettes toward nicotine alternatives, continued strength in energy drinks and a broader liquor assortment as lasting contributors on the grocery side.
He was more measured on prepared foods, describing that business as more exposed to commodity swings. Even so, he said waste reduction has been self-help and remains an area where Casey’s still sees more room to improve.
CASY Keeps Fuel and Guidance in FocusFuel remained another important part of the story. Fourth-quarter same-store gallons sold increased 1.5%, while fuel margin rose to 46.9 cents per gallon from 37.6 cents a year earlier. Total fuel gross profit jumped 29.1% to $397.4 million.
For fiscal 2027, Casey’s expects inside same-store sales growth of 2% to 5%, same-store fuel gallons between down 1% and up 1%, total operating expense growth of roughly 5% to 7% and EBITDA growth of 8% to 10%. The company also expects at least 120 store openings through a mix of acquisitions and new construction.
Bramlage added that the EBITDA outlook is modeled around a mid-40-cent fuel margin, and he said May trends in inside same-store sales, gallons sold and fuel margin were consistent with reaching the annual guidance range.
Casey’s Pushes Wings and Store GrowthRebelez used the call to highlight how the food platform is widening beyond pizza. He said sauced wings had reached nearly 850 stores by the end of the quarter and were creating a more incremental prepared-food occasion rather than cannibalizing pizza demand.
He told analysts that when guests order wings on their own, prepared-food order frequency increases by 30%. He also said whole-pizza volume in stores selling wings remains in the high single digits, reinforcing management’s view that wings can become a meaningful long-term growth engine.
On store growth, Casey’s ended fiscal 2026 with 2,944 stores after adding 40 new builds and 40 acquisitions. Management said fiscal 2027 unit growth is less an acceleration in strategy than a return to its normal growth algorithm after absorbing the CEFCO acquisition.
CASY Addresses Consumer and Cost QuestionsSeveral analyst questions tested how durable recent demand and margin trends really are. Rebelez said consumers are still spending across income cohorts, though lower-income shoppers are somewhat softer and fuel-related behavior changes remain modest.
He noted some trading behavior at the pump, including lower premium fuel mix, higher ethanol-blended fuel sales and increased use of Casey’s Rewards points for fuel discounts. Even so, he said the company is not seeing meaningful pressure inside the store.
Bramlage also addressed concerns about operating expenses. He said first-quarter expense growth should run in the high-single digits partly because of higher credit card fees tied to fuel prices, but he expects expense growth to moderate later as incentive compensation and charitable contributions normalize against tougher comparisons.
Casey’s Sets Up Its Next PhaseThe broader tone from management was confident and forward-looking. Rebelez said Casey’s had completed its three-year strategic plan after exceeding its unit growth goal, expanding food offerings and improving operating efficiency.
That posture carried into the outlook. Rather than signaling a reset after a strong year, management emphasized continuity in the model, from inside sales and food innovation to fuel execution and acquisitions.
CASY’s Zacks Signals Stay MixedCASY currently carries a Zacks Rank #3 (Hold), with a Value Score of D, Growth Score of A, Momentum Score of F and VGM Score of C. That profile points to stronger growth characteristics than value or momentum support at the moment.
According to the Zacks Style Score framework, higher grades are associated with better expected near-term performance, while the strongest combinations tend to be Zacks Rank #1 (Strong Buy) or 2 (Buy) stocks paired with a Style Score or VGM Score of A or B. A Zacks Rank #3 can still be held, but it does not carry the same performance profile as the top-ranked groups, and the rank can change as earnings estimate revisions adjust after the quarter.
You can see the complete list of today’s Zacks #1 Rank stocks here.
This is a fair market value price provided by Massive. Learn more.
52-Week Range$490.00▼
$927.85Dividend Yield0.25%
P/E Ratio47.33
Price Target$871.67
Casey’s General Stores NYSE: CASY is a compelling buy. The hot guidance for fiscal 2027 (FY2027) affirms the investment thesis, and early Q2 2026 price action is a natural market mechanic that will enable future gains.
Signals, including technical chart patterns, analyst sentiment, and institutional activity, were bullish ahead of the June 9 earnings release, driving price action to unsustainable levels. June’s price pullback realigned the market with sentiment trends, setting CASY up to continue its uptrend as the year progresses. Notably, CASY reaffirmed this thesis the day after the company released earnings, surging 19%.
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Casey’s Market Signals Strength and Confidence: Uptrend IntactCasey’s chart signals are robust. With price action on the brink of going parabolic, the signals include a steadily strengthening MACD, a MACD converging with recent highs, and a stochastic that reveals strengthening support. While it, too, shows convergence with the recent highs, the more telling signal is the dip pattern, which reveals support rising to the bait each time it's offered. The likely outcome is that CASY investors will continue to buy dips as they arise, with significant fundamental factors in play to incentivize the activity.
Casey’s investment thesis begins with a goal of growing through consolidation. The gas and convenience store market is highly fragmented, leaving players like Casey well positioned to expand their territory through acquisition. The thesis strengthens with the team, which has a two-pronged approach: managing fuel and in-store operations separately, with great success. Fuel margins run at consistently high levels, as do in-store margins, enabling a healthy cash flow, profitability, and balance sheet strength. The balance sheet is central to the thesis, as it is fortress-quality, enabling self-funded expansion and capital returns.
Casey’s capital return is a catalyst in 2026. The company halted buybacks in fiscal 2025 to preserve capital and cash flow for a major acquisition. The story as 2026 reaches mid-year is that the acquisition is complete, integration is smooth, and cash flow needs are reprioritized toward capital returns, including dividends and share buybacks.
Casey’s Has Catalysts and Tailwinds Driving Bullish Price ActionSigns of cash flow strength are seen in the dividend, which was recently increased by 14%, the 25th consecutive annual increase, and the buybacks, which are reducing the share count. Highlights from the company's fiscal Q4 2026 release include $63 million in quarterly buybacks, representing 0.18% of market cap, and a 0.5% year-over-year decline in shares. Looking ahead, Casey’s General Stores will likely continue to reduce its share count quarterly, unless, of course, it needs to make another acquisition.
Analysts and institutional trends underpin the stock price action, reinforcing the view that the June pullback is a natural and necessary market function. The consensus price target is rising quickly and is likely to continue its uptrend as the year progresses. Up 5% in the 30 days preceding the earnings release and 75% on a trailing 12-month basis, consensus provides solid support for this market, with the high-end range of $915 forecasting a fresh all-time high. And the $915 target is no outlier; several targets put this stock in the high-$800 to low-$900 range, and more are expected over time.
Institutional trends are equally bullish. MarketBeat’s data reveal that the group owns more than 85% of the stock and has been accumulating on balance for seven consecutive quarters. Their activity ramped in 2025 as the Fike’s acquisition progressed, sustained the higher level in 2026 and ramped again in Q2. The takeaway is that institutions are confident in this company’s growth trajectory and capital return and are likely to limit downside in the event of price pullbacks.
Casey’s General Stores Wows With Earnings Strength and FY2027 GuidanceCasey’s General Stores had an amazing quarter, with revenue topping $4.55 billion, up 14.5% and more than 500 basis points (bps) better than expected. The strength was driven by both segments and new stores. Inside comps grew by 5.5%, fuel comps by 1.5%, and stores by nearly 14%.
Margin news was another area of strength, with the teams driving wider margins in both segments. Fuel was the star, with fuel gallon margin up nearly 10 cents to a historically high level, while inside comps were also strong. EBITDA grew by 33.2%, well ahead of revenue, net income by 65.5%, and GAAP earnings per share by 66.2%, aided by a reduced share count.
Guidance is the catalyst for higher share prices. The company expects systemwide comps in the low single digits, with inside sales up as much as 5% and fuel gallons flat. The takeaway is that low-single-digit comps plus a 14% increase in store count translate into better-than-expected guidance and a stronger outlook for capital returns.
Should You Invest $1,000 in Casey's General Stores Right Now?Before you consider Casey's General Stores, you'll want to hear this.
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Key Takeaways CASY declared a $0.65 dividend payable Aug. 14 and has raised payouts six times in five years.CX announced a $0.03 dividend payable June 29 and has increased dividends four times in five years.UNH declared a $2.32 dividend payable June 23, with six dividend hikes over five years. Geopolitical tensions, a surge in global oil prices and economic uncertainties, owing to rising inflation, have turned Wall Street volatile. Stocks have been suffering lately as uncertainty over an end to the war with Iran has dented investors’ confidence.
Also, hopes of a rate cut are a distant dream as the Federal Reserve has indicated a rate hike if inflation remains elevated.
Amid the ongoing uncertainty, conservative investors seeking reliable income and looking for ways to protect their capital may want to consider holding or investing in dividend-paying stocks.
Such stocks provide steady earnings through regular dividend payouts and can help mitigate the effects of market volatility. Three such stocks are: Casey's General Stores, Inc. (CASY - Free Report) , CEMEX, S.A.B. de C.V. (CX - Free Report) and UnitedHealth Group (UNH - Free Report) .
Geopolitical Uncertainty, High Inflation Raise ConcernsPresident Donald Trump on Wednesday suggested that the Iran war is far from over as negotiations with Tehran were taking “too long.” Investors had remained hopeful for over a month that the United States and Iran could reach a peace deal soon. However, a fresh round of attacks carried out earlier this week has again proved that the ceasefire remains fragile.
Oil prices have spiked nearly 40% since the beginning of the war, leading to a surge in inflation over the past two months.
Consumer price index (CPI) climbed 0.6% in April after increasing 0.9% in March. On an annual basis, CPI was up 3.8% in April compared with the same month a year earlier, marking its highest year-over-year reading since May 2023. Economists believe inflation rose further in May.
Investors were hopeful that the Federal Reserve would go for a rate cut in the second half of the year. However, several Fed officials believe a 25-basis-point rate cut will be necessary if inflation remains above the Fed’s 2% target. A rate hike could keep markets volatile for a longer period.
3 Stocks That Recently Announced Dividend HikesCasey's General StoresCasey's General Stores, Inc. operates convenience stores under the Casey's and Casey's General Store names in 16 states, mainly Iowa, Missouri and Illinois. CASY offers a comprehensive range of products and services to meet the needs of its customers. Casey’s General Stores has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
On June 9, Casey's General Stores announced that its shareholders would receive a dividend of $0.65 a share on Aug. 14. CASY has a dividend yield of 0.30%. Over the past five years, Casey's General Stores has increased its dividend six times, and its payout ratio presently sits at 13% of earnings. Check Casey's General Stores' dividend history here.
CEMEXCEMEX, S.A.B. de C.V. is one of the largest cement companies in the world, with close to 78 million metric tons of production capacity. Through operating subsidiaries in four continents, CX is engaged in the production, distribution, marketing and sale of cement, ready-mix concrete, aggregates and clinker. CEMEX has a Zacks Rank #3.
On June 5, CEMEX declared that its shareholders would receive a dividend of $0.03 a share on June 29. CX has a dividend yield of 0.75%. Over the past five years, CEMEX has increased its dividend four times, and its payout ratio presently sits at 25% of earnings. Check CEMEX’s dividend history here.
UnitedHealth GroupUnitedHealth Group provides a wide range of healthcare products and services, such as health maintenance organizations, point of service plans, preferred provider organizations and managed fee-for-service programs. UNH has the largest and most diverse membership base within the managed-care organization market, which gives it significant competitive advantages.
On June 3, UnitedHealth Group announced that its shareholders would receive a dividend of $2.32 a share on June 23. UNH has a dividend yield of 2.14%. Over the past five years, UnitedHealth Group has increased its dividend six times, and its payout ratio at present sits at 54% of earnings. Check UnitedHealth Group’s dividend history here.
Service Corp. (SCI - Free Report) came out with quarterly earnings of $0.97 per share, missing the Zacks Consensus Estimate of $1 per share. This compares to earnings of $0.96 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of -3.24%. A quarter ago, it was expected that this funeral home and cemetery operator would post earnings of $1.14 per share when it actually produced earnings of $1.14, delivering no surprise.
Over the last four quarters, the company has surpassed consensus EPS estimates two times.
Service Corp., which belongs to the Zacks Funeral Services industry, posted revenues of $1.1 billion for the quarter ended March 2026, surpassing the Zacks Consensus Estimate by 0.82%. This compares to year-ago revenues of $1.07 billion. The company has topped consensus revenue estimates three times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Service Corp. shares have added about 10.8% since the beginning of the year versus the S&P 500's gain of 4.3%.
What's Next for Service Corp.?While Service Corp. has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Service Corp. was unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #4 (Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.97 on $1.1 billion in revenues for the coming quarter and $4.19 on $4.44 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Funeral Services is currently in the bottom 7% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Another stock from the same industry, Carriage Services (CSV - Free Report) , has yet to report results for the quarter ended March 2026. The results are expected to be released on May 6.
This provider of funeral and cemetary services and products is expected to post quarterly earnings of $0.85 per share in its upcoming report, which represents a year-over-year change of -11.5%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
Carriage Services' revenues are expected to be $111.41 million, up 4.1% from the year-ago quarter.
For the quarter ended March 2026, Service Corp. (SCI - Free Report) reported revenue of $1.1 billion, up 2.1% over the same period last year. EPS came in at $0.97, compared to $0.96 in the year-ago quarter.
The reported revenue represents a surprise of +0.82% over the Zacks Consensus Estimate of $1.09 billion. With the consensus EPS estimate being $1.00, the EPS surprise was -3.24%.
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
Here is how Service Corp. performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Total comparable funeral average revenue per service: $5,947.00 compared to the $5,920.22 average estimate based on two analysts.Funeral services performed: 93,686 compared to the 94,699 average estimate based on two analysts.Revenue- Funeral: $630.6 million compared to the $642.43 million average estimate based on three analysts. The reported number represents a change of -1.4% year over year.Revenue- Cemetery: $465.9 million compared to the $445.12 million average estimate based on three analysts. The reported number represents a change of +7.2% year over year.Revenue- Cemetery- Core: $425.1 million versus the two-analyst average estimate of $407.71 million. The reported number represents a year-over-year change of +6.4%.Revenues - Cemetery - Total recognized preneed revenue: $315.9 million versus $294.28 million estimated by two analysts on average.Revenue- Cemetery- Core- Atneed: $109.2 million versus $113.42 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a -2.8% change.Revenue- Funeral- Core general agency and other: $54 million versus the two-analyst average estimate of $54.65 million. The reported number represents a year-over-year change of -1.5%.Revenue- Funeral- Non-funeral home preneed sales: $22.1 million versus $23.53 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a -0.5% change.Revenue- Cemetery- Other: $40.8 million compared to the $36.79 million average estimate based on two analysts. The reported number represents a change of +15.9% year over year.Gross profit- Funeral: $134 million versus the three-analyst average estimate of $150.86 million.Gross profit- Cemetery: $152.5 million versus $140.51 million estimated by three analysts on average.View all Key Company Metrics for Service Corp. here>>>
Shares of Service Corp. have returned +4.7% over the past month versus the Zacks S&P 500 composite's +12.2% change. The stock currently has a Zacks Rank #4 (Sell), indicating that it could underperform the broader market in the near term.
Key Takeaways SCI Q1 EPS missed estimates, while revenues rose 2.1% to $1,096.5M. SCI funeral services fell to 93,686; gross margin dropped to 21.2% despite higher pricing. SCI cemetery revenues grew to $465.9M; preneed sales production rose 10%, and cash flow hit $334.5M. Service Corporation International (SCI - Free Report) posted results for the first quarter of 2026, wherein earnings missed estimates as funeral volumes normalized from an unusually strong prior-year flu season, partly offset by resilient pricing, disciplined cost control and solid cemetery preneed momentum.
The company’s adjusted earnings of 97 cents per share rose 1% year over year while missing the Zacks Consensus Estimate of $1.00. Revenues increased 2.1% year over year to $1,096.5 million and beat the consensus mark of $1,088 million. Comparable cemetery preneed sales production rose 10% in the quarter, helping offset softer funeral volumes.
SCI generated operating income of $243.8 million in the first quarter of 2026, down from $251.7 million a year ago.
SCI’s Funeral Results Weaken on Volume DeclinesThe Zacks Rank #4 (Sell) company’s funeral segment faced a volume-driven headwind in the quarter. Total funeral revenues were $630.6 million versus $639.5 million in the first quarter of 2025, reflecting lower activity across core and non-funeral home channels.
Profitability in the segment also softened. Funeral gross profit fell to $134 million from $154 million, with gross margin contracting to 21.2% from 24.1%. Funeral services performed declined to 93,686 from 97,854, though average revenue per service increased to $5,919 from $5,748.
Comparable funeral revenues decreased to $620.2 million from $637.6 million, as core volumes moved lower. Comparable gross profit declined to $132.6 million from $155.4 million, and the comparable gross margin compressed to 21.4% from 24.4%, highlighting the impact of lower revenues across a high fixed-cost structure.
Service trends were mixed across categories. Comparable atneed services performed were 47,978 compared with 52,187 a year ago, while matured preneed services were 28,509 versus 29,724. Even with fewer services, total comparable average revenue per service rose to $5,947 from $5,754, and the core cremation rate edged up to 57.8% from 57.4%.
SCI’s Cemetery Segment Delivers Strong GrowthService Corporation’s cemetery segment was the quarter’s clear bright spot. Cemetery revenues increased to $465.9 million from $434.7 million in the year-ago quarter, supported by higher recognized preneed property revenues of $209.6 million versus $188.7 million, and higher recognized preneed merchandise and service revenues of $106.3 million versus $98.5 million.
Margin performance improved alongside growth. Cemetery gross profit rose to $152.5 million from $137.4 million, and gross margin expanded to 32.7% from 31.6%, reflecting favorable operating leverage as recognized preneed activity increased.
Comparable cemetery revenues rose to $465.5 million from $434.7 million, driven by higher core revenues of $424.7 million versus $399.5 million and higher other revenue of $40.8 million versus $35.2 million. Comparable gross profit grew to $152.5 million from $137.5 million, and the comparable gross profit percentage improved to 32.8% from 31.6%.
Comparable cemetery preneed sales production increased to $356.2 million from $324.6 million, while total preneed and atneed sales production rose to $466.5 million from $437.8 million. The recognition rate was 91% compared with 91.3% in the prior-year quarter.
SCI’s 2026 View Reaffirmed, Cash Flow ImprovesService Corporation’s adjusted operating cash flow increased to $334.5 million for the first quarter, driven by favorable working capital movements. Total capital expenditures were $79.9 million compared with $78.2 million a year ago, reflecting continued investment in field locations, cemetery development and growth projects.
SCI ended the quarter with cash and cash equivalents of roughly $258 million, while long-term debt was nearly $5.11 billion.
Management reaffirmed 2026 guidance for diluted earnings per share excluding special items of $4.05-$4.35 and net cash provided by operating activities excluding special items of $1.005-$1.065 billion, with maintenance capital expenditures expected to total $325 million.
Shares of SCI have risen 10.8% year to date, in line with the industry.
Consumer Staple Stocks to ConsiderSmithfield Foods, Inc. (SFD - Free Report) produces various packaged meats and fresh pork products in the United States and internationally. It carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for Smithfield Foods’ current financial-year sales and earnings indicates growth of 1.3% and 7.5%, respectively, from the prior-year reported levels. SFD delivered a trailing four-quarter earnings surprise of 12%, on average.
Tyson Foods, Inc. (TSN - Free Report) operates as a food company through the Beef, Pork, Chicken and Prepared Foods segments. TSN currently carries a Zacks Rank #2.
The Zacks Consensus Estimate for Tyson Foods’ current fiscal-year sales calls for growth of 4.4%, while the consensus mark for earnings indicates a decline of 4.1% from the year-ago figures. TSN delivered a trailing four-quarter earnings surprise of 16.5%, on average.
Post Holdings (POST - Free Report) operates as a consumer-packaged goods holding company. At present, POST carries a Zacks Rank of 2. Post Holdings delivered a trailing four-quarter earnings surprise of 19.6%, on average.
The consensus estimate for Post Holdings’ current fiscal-year sales and earnings implies growth of 2.7% and 0.1%, respectively, from the year-ago figures.
Earnings COLUMBUS, OH / ACCESS Newswire / May 1, 2026 / SCI Engineered Materials, Inc. ("SCI" or "Company") (OTCQB:SCIA), today reported financial results for the three months ended March 31, 2026.
Jeremy Young, President and Chief Executive Officer, stated, "Our 2026 first quarter financial performance included record revenue, and significantly higher gross profit, net income, and quarter-end order backlog compared to the same period a year ago. We are especially encouraged by increased sales of products introduced in 2025 and additional specialty services that complement SCI's established capabilities. Customer interest in a domestic manufacturer continues to increase."
Mr. Young added, "SCI's marketing and sales initiatives continue to enhance the Company's visibility which resulted in the addition of new customers and an increased number of inquiries being converted to orders during the first quarter of 2026. Specific benefits are attributable to participation in industry specific trade shows and expanded online marketing initiatives. These focused efforts are enabling the Company to gain traction in specific niche markets as customers recognize the breadth of our manufacturing and services portfolio."
Revenue
Revenue increased 133% for the three months ended March 31, 2026, to a record $8,160,362 compared to $3,500,232 for the same period in 2025. The year-over-year difference was due to increased cost of a key raw material, product mix and higher volume compared to a year ago.
Order backlog was $7.1 million at March 31, 2026, compared to $2.6 million at December 31, 2025, and $2.5 million on the same date a year ago, due to products introduced in 2025 and new customers. Intra-quarter orders remain strong as companies continue to effectively manage their inventories.
Gross profit
Gross profit increased 90% to $2,035,120 for the first quarter of 2026 from $1,072,814 for the first quarter of 2025, primarily due to higher revenue.
Operating expenses
Operating expenses were $1,546,196, including fraud expense of $562,026, for the first three months of 2026 compared to operating expenses of $770,275 for the same period last year. Key factors in the year-over-year comparison include the fraud expense, higher non-cash compensation and benefit expense due to timing issues, and increased staff versus the first quarter of 2025.
Fraud expense
On February 10, 2026, the Company reported it was subjected to an imposter scam of $898,325 executed in conjunction with bank fraud. The Company has recovered $336,299, resulting in a fraud expense of $562,026 recorded in the first quarter of 2026. Comprehensive efforts continue to be actively pursued to recover the funds involved.
Net interest income
Net interest income was $109,086 for the three months ended March 31, 2026, or 11% above $98,130 for the same period last year. This increase was attributable to higher cash and cash equivalents, and additional investments in marketable securities compared to the first quarter of 2025.
Income taxes
Income tax expense increased 49% to $135,748 for the three months ended March 31, 2026, from $90,952 for the same period in 2025 due to higher taxable income for the first quarter of this year. The Company's effective tax rate remained stable at 22.7% for the first quarter of 2026 and 2025, respectively.
Net income
Net income was $462,262 for the three months ended March 31, 2026, versus $309,717 for the comparable period in 2025. The 49% year-over-year increase was primarily attributable to higher gross profit. Net income per diluted share was $0.10 for the first quarter of 2026 versus $0.07 for the first quarter of 2025. Shares outstanding decreased approximately 2% for the first quarter of 2026 compared to the same period last year due to the Company's share repurchase program initiated during the fourth quarter of 2025.
Cash and cash equivalents
Cash and cash equivalents were $8,540,160 at March 31, 2026, versus $7,939,000 at December 31, 2025, an increase of 7.6%. The Company's investments in marketable securities were $3,367,688 at March 31, 2026, compared to $3,367,125 at December 31, 2025.
About SCI Engineered Materials, Inc.
SCI Engineered Materials is a global supplier and manufacturer of advanced materials for PVD thin film applications and works closely with end users and OEMs to develop innovative, customized solutions. Additional information is available at www.sciengineeredmaterials.com or follow SCI Engineered Materials, Inc. at:
This press release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which are intended to be covered by the safe harbors created thereby. Those statements include, but are not limited to, all statements regarding intent, beliefs, expectations, projections, customer guidance, forecasts, plans of the Company and its management. These forward-looking statements involve numerous risks and uncertainties, including without limitation, other risks and uncertainties detailed from time to time in the Company's Securities and Exchange Commission filings, including the Company's Annual Report on Form 10-K for the year ended December 31, 2025. One or more of these factors has affected and could affect the Company's projections in the future. Therefore, there can be no assurances that the forward-looking statements included in this press release will prove to be accurate. Due to the significant uncertainties in the forward-looking statements included herein, the inclusion of such information should not be regarded as a representation by the Company, or any other persons, that the objectives and plans of the Company will be achieved. All forward-looking statements made in this press release are based on information presently available to the management of the Company. The Company assumes no obligation to update any forward-looking statements.
SCI ENGINEERED MATERIALS, INC.
CONDENSED BALANCE SHEETS
ASSETS
March 31,
December 31,
2026
2025
(UNAUDITED)
Current Assets
Cash and cash equivalents
$
8,540,160
$
7,939,000
Investments - marketable securities, short term
298,688
298,125
Accounts receivable, less allowance for doubtful accounts
787,910
720,364
Inventories
3,277,395
1,091,471
Prepaid purchase orders and expenses
153,158
196,491
Total current assets
13,057,311
10,245,451
Property and Equipment, at cost
10,937,753
10,854,986
Less accumulated depreciation and amortization
(7,899,596
)
(8,020,249
)
Property and equipment, net
3,038,157
2,834,737
Investments, net - marketable securities, long term
3,069,000
3,069,000
Right of use asset, net
1,011,287
1,061,709
Other assets
60,227
61,461
Total other assets
4,140,514
4,192,170
TOTAL ASSETS
$
20,235,982
$
17,272,358
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities
Operating lease, short term
$
222,253
$
212,561
Accounts payable
266,258
245,523
Customer deposits
3,556,441
829,158
Accrued expenses
427,060
568,503
Total current liabilities
4,472,012
1,855,745
Deferred tax liability
515,154
389,572
Operating lease, long term
789,032
849,148
Total liabilities
5,776,198
3,094,465
Total shareholders' equity
14,459,784
14,177,893
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
$
20,235,982
$
17,272,358
SCI ENGINEERED MATERIALS, INC
STATEMENTS OF INCOME
(UNAUDITED)
THREE MONTHS ENDED MARCH 31,
2026
2025
Revenue
$
8,160,362
$
3,500,232
Cost of revenue
6,125,242
2,427,418
Gross profit
2,035,120
1,072,814
General and administrative expense
642,043
547,821
Fraud expense
562,026
-
Research and development expense
142,610
102,267
Marketing and sales expense
199,517
120,187
Income from operations
488,924
302,539
Interest income, net
109,086
98,130
Income before provision for income taxes
598,010
400,669
Income tax expense
135,748
90,952
NET INCOME
$
462,262
$
309,717
Earnings per share - basic and diluted
Income per common share
Basic
$
0.10
$
0.07
Diluted
$
0.10
$
0.07
Weighted average shares outstanding
Basic
4,470,227
4,568,127
Diluted
4,470,227
4,572,491
SCI ENGINEERED MATERIALS, INC
CONDENSED STATEMENTS OF CASH FLOWS
(UNAUDITED)
, /PRNewswire/ -- Service Corporation International (NYSE: SCI), the largest provider of deathcare products and services in North America, today announced that its Board of Directors has approved an increase in its quarterly cash dividend to thirty-six cents per share of common stock. This quarterly cash dividend declared today represents a 6% increase from the previously declared quarterly dividend of thirty-four cents per share of common stock per quarter. The quarterly cash dividend announced today is payable on June 30, 2026 to shareholders of record at the close of business on June 15, 2026. While the Company intends to pay regular quarterly cash dividends for the foreseeable future, all subsequent dividends, and the establishment of record and payment dates, are subject to final determination by the Board of Directors each quarter after its review of the Company's financial performance.
Cautionary Statement on Forward-Looking Statements
The statements in this press release that are not historical facts are forward-looking statements. These forward-looking statements have been made in reliance on the "safe harbor" protections provided under the Private Securities Litigation Reform Act of 1995. These statements may be accompanied by words such as "believe," "estimate," "project," "expect," "anticipate," or "predict," that convey the uncertainty of future events or outcomes. These statements are based on assumptions that we believe are reasonable; however, many important factors could cause our actual results in the future to differ materially from the forward-looking statements made herein and in any other documents or oral presentations made by, or on behalf of us. There can be no assurance that future dividends will be declared. The actual declaration of future dividends, and the establishment of record and payment dates, is subject to final determination by our Board of Directors each quarter after its review of our financial performance. Important factors which could cause actual results to differ materially from those in forward-looking statements include, among others, restrictions on the payment of dividends under existing or future credit agreements or other financing arrangements; changes in tax laws relating to corporate dividends; a determination by the Board of Directors that the declaration of a dividend is not in the best interests of the Company and its shareholders; an increase in our cash needs or a decrease in available cash; or a deterioration in our financial condition or results. For further information on these and other risks and uncertainties, see our Securities and Exchange Commission filings, including our 2025 Annual Report on Form 10-K. Copies of this document as well as other SEC filings can be obtained from our website at http://www.sci-corp.com. We assume no obligation to publicly update or revise any forward-looking statements made herein or any other forward-looking statements made by us, whether as a result of new information, future events or otherwise.
About Service Corporation International
Service Corporation International (NYSE: SCI), headquartered in Houston, Texas, is North America's leading provider of funeral, cemetery and cremation services, as well as final-arrangement planning in advance, serving approximately 700,000 families each year. Our diversified portfolio of brands provides families and individuals a full range of choices to meet their needs, from simple cremations to full life celebrations and personalized remembrances. Our Dignity Memorial® brand is the name families turn to for professionalism, compassion, and attention to detail that is second to none. At March 31, 2026, we owned and operated 1,487 funeral service locations and 503 cemeteries (of which 314 are combination locations) in 44 states, eight Canadian provinces, the District of Columbia, and Puerto Rico. For more information about Service Corporation International, please visit our website at www.sci-corp.com. For more information about Dignity Memorial®, please visit www.dignitymemorial.com.
For additional information contact: [email protected]
Investors:
Trey Bocage – Assistant Vice President / Investor Relations
(713) 525-3454
Andrea Low – Director / Investor Relations
(713) 525-2811
Media:
Jay Andrew – Assistant Vice President / Corporate Communications
Key Takeaways SCI increased the quarterly dividend to 36 cents per share, reinforcing its steady shareholder return focus.SCI returned $190M in Q1 2026, including $143M buybacks of nearly 2M stock at $80 per share.SCI's preneed cemetery sales production rose 10% YoY; it invested $108M and spent $24M on acquisitions. Service Corporation International (SCI - Free Report) , the largest provider of deathcare products and services in North America, continues to reinforce its commitment to consistent shareholder returns through disciplined capital allocation and stable cash flow generation.
Service Corp announced a quarterly cash dividend increase to 36 cents per share from the previously declared 34 cents, marking a 6% hike. The dividend will be payable on June 30, 2026, to its shareholders of record at the close of business on June 15. The latest dividend increase reflects management’s confidence in the company’s resilient business model and long-term financial strength.
SCI has consistently prioritized returning capital to its shareholders through regular dividend increases, supported by dependable demand trends in funeral, cemetery and cremation services. The company’s broad geographic footprint and diversified service offerings continue to provide stable recurring revenues and strong cash-generation capabilities.
In first-quarter 2026, Service Corp returned $190 million in capital to its shareholders, comprising $143 million in share repurchases and $47 million in dividend payments. The company bought back nearly 2 million shares during the quarter at an average price of roughly $80 per share, bringing its outstanding share count to a little more than 130 million as of the end of March.
Management noted that while it intends to continue paying regular quarterly dividends, future declarations will remain subject to board approval following a review of financial performance and liquidity conditions. The company also highlighted potential risks, including financing restrictions, tax law changes and shifts in cash requirements, which could affect future dividend decisions.
What More Should Investors Know About SCI?Headquartered in Houston, TX, SCI currently operates 1,487 funeral service locations and 503 cemeteries across North America under several recognized brands, including Dignity Memorial. Serving nearly 700,000 families annually, the company remains well positioned to drive long-term growth while maintaining a strong shareholder-friendly capital return strategy.
Service Corp continues to benefit from strong momentum in its preneed cemetery business, supported by healthy sales execution and expanding community outreach initiatives. In first-quarter 2026, preneed cemetery sales production increased 10% year over year, driven by robust large sales activity and improving sales velocity. Management highlighted growing success from seminar-based marketing efforts, expansion of community sales teams and improved lead generation strategies, which are helping SCI reach customers beyond traditional funeral-home channels.
The company is also strengthening its long-term growth platform through strategic investments and acquisitions. During the quarter, SCI invested $108 million across maintenance projects, cemetery development, digital initiatives and new funeral-home construction. Additionally, the company spent $24 million on acquisitions across multiple states, while management indicated continued optimism regarding its acquisition pipeline for 2026.
In the past six months, this Zacks Rank #4 (Sell) company has lost 2.1% against the industry’s 1.1% growth.
SCI Stock's Price Performance
Image Source: Zacks Investment Research
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The Zacks Consensus Estimate for Smithfield Foods’ current financial-year sales and earnings indicates growth of 1.3% and 7.5%, respectively, from the prior-year reported levels. SFD delivered a trailing four-quarter earnings surprise of 12%, on average.
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The Zacks Consensus Estimate for Tyson Foods’ current fiscal-year sales calls for growth of 3.7%, while the same for earnings indicates a decline of 0.2% from the year-ago figures. TSN delivered a trailing four-quarter earnings surprise of 18.1%, on average.
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The consensus estimate for Post Holdings’ current fiscal-year sales and earnings implies growth of 2.7% and 0.1%, respectively, from the year-ago figures. POST delivered a trailing four-quarter earnings surprise of 19.6%, on average.
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VIENNA, Va.--(BUSINESS WIRE)---- $CVM #Multikine--CEL-SCI Enters Strategic Agreement with Amarox for the Registration, Commercialization, and Distribution of Multikine in Saudi Arabia.
VIENNA, Va.--(BUSINESS WIRE)---- $CVM #Multikine--CEL-SCI reported financial results for three months ended March 31, 2026, as well as key corporate developments for Multikine.
Service Corporation International remains a stable, cash-generating leader in the fragmented death care industry, operating 1,487 funeral homes and 503 cemeteries. I reaffirm SCI as a "Buy" due to attractive valuation, consistent shareholder returns, and resilience amid challenging economic conditions. SCI's 2026 projections show rising revenue, net profits, and operating cash flow, with net leverage and capital returns well managed.
A month has gone by since the last earnings report for Service Corp. (SCI - Free Report) . Shares have lost about 5.9% in that time frame, underperforming the S&P 500.
But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Service Corp. due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Service Corporation Q1 Earnings Miss on Lower Funeral VolumesService Corporation posted adjusted earnings of 97 cents per share, which rose 1% year over year while missing the Zacks Consensus Estimate of $1.00. Revenues increased 2.1% year over year to $1,096.5 million and beat the consensus mark of $1,088 million. Comparable cemetery preneed sales production rose 10% in the quarter, helping offset softer funeral volumes.
SCI generated operating income of $243.8 million in the first quarter of 2026, down from $251.7 million a year ago.
SCI’s Funeral Results Weaken on Volume DeclinesThe company’s funeral segment faced a volume-driven headwind in the quarter. Total funeral revenues were $630.6 million versus $639.5 million in the first quarter of 2025, reflecting lower activity across core and non-funeral home channels. Profitability in the segment also softened. Funeral gross profit fell to $134 million from $154 million, with gross margin contracting to 21.2% from 24.1%. Funeral services performed declined to 93,686 from 97,854, though average revenue per service increased to $5,919 from $5,748.
Comparable funeral revenues decreased to $620.2 million from $637.6 million, as core volumes moved lower. Comparable gross profit declined to $132.6 million from $155.4 million, and the comparable gross margin compressed to 21.4% from 24.4%, highlighting the impact of lower revenues across a high fixed-cost structure.
Service trends were mixed across categories. Comparable atneed services performed were 47,978 compared with 52,187 a year ago, while matured preneed services were 28,509 versus 29,724. Even with fewer services, total comparable average revenue per service rose to $5,947 from $5,754, and the core cremation rate edged up to 57.8% from 57.4%.
SCI’s Cemetery Segment Delivers Strong GrowthService Corporation’s cemetery segment was the quarter’s clear bright spot. Cemetery revenues increased to $465.9 million from $434.7 million in the year-ago quarter, supported by higher recognized preneed property revenues of $209.6 million versus $188.7 million, and higher recognized preneed merchandise and service revenues of $106.3 million versus $98.5 million.
Margin performance improved alongside growth. Cemetery gross profit rose to $152.5 million from $137.4 million, and gross margin expanded to 32.7% from 31.6%, reflecting favorable operating leverage as recognized preneed activity increased.
Comparable cemetery revenues rose to $465.5 million from $434.7 million, driven by higher core revenues of $424.7 million versus $399.5 million and higher other revenue of $40.8 million versus $35.2 million. Comparable gross profit grew to $152.5 million from $137.5 million, and the comparable gross profit percentage improved to 32.8% from 31.6%.
Comparable cemetery preneed sales production increased to $356.2 million from $324.6 million, while total preneed and atneed sales production rose to $466.5 million from $437.8 million. The recognition rate was 91% compared with 91.3% in the prior-year quarter.
SCI’s 2026 View Reaffirmed, Cash Flow ImprovesService Corporation’s adjusted operating cash flow increased to $334.5 million for the first quarter, driven by favorable working capital movements. Total capital expenditures were $79.9 million compared with $78.2 million a year ago, reflecting continued investment in field locations, cemetery development and growth projects. SCI ended the quarter with cash and cash equivalents of roughly $258 million, while long-term debt was nearly $5.11 billion.
Management reaffirmed 2026 guidance for diluted earnings per share excluding special items of $4.05-$4.35 and net cash provided by operating activities excluding special items of $1.005-$1.065 billion, with maintenance capital expenditures expected to total $325 million.
How Have Estimates Been Moving Since Then?Since the earnings release, investors have witnessed a downward trend in fresh estimates.
The consensus estimate has shifted -10.36% due to these changes.
VGM ScoresAt this time, Service Corp. has a subpar Growth Score of D, however its Momentum Score is doing a lot better with a B. Charting a somewhat similar path, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
OutlookEstimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise Service Corp. has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.
Vancouver, British Columbia--(Newsfile Corp. - June 5, 2026) - Telescope Innovations Corp. (CSE: TELI) (OTCQB: TELIF) (FSE: J4U) ("Telescope" or the "Company") congratulates its Founder and Chief Technology Officer, Professor Jason Hein, on receiving the 2026 SCI Canada LeSueur Memorial Award from the Society of Chemical Industry ("SCI").
Figure 1. The 2026 LeSeueur Memorial Award Presented to Professor Jason Hein
To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/8923/300261_328197891408ab84_001full.jpg
Administered by the Society of Chemical Industry, a professional body founded in London in 1881 and incorporated by Royal Charter in 1907, the LeSueur Memorial Award was established in 1955 in honour of Ernest A. LeSueur, a pioneer in Canadian chemical engineering. The award is presented for technical excellence, in either a university or industrial setting in Canada, with a contribution to Canadian industry through chemical creativity and innovation. Past recipients include distinguished leaders from institutions such as the University of British Columbia, the University of Toronto, McMaster University, and the University of Waterloo, as well as senior innovators from organizations including DuPont, Gilead, and Syncrude. The award is presented annually at the SCI Canada Awards Dinner and is among the most respected honours in the Canadian chemical sciences community. Professor Hein, who also serves as Professor of Chemistry at the University of British Columbia, is recognized for his work at the intersection of physical organic chemistry, reaction mechanism, automation, and deployable technology.
The LeSueur Memorial Award follows Professor Hein's receipt of the 2025 R.U. Lemieux Award from the Chemical Institute of Canada, further reflecting the growing recognition of his contributions to chemical research and pharmaceutical manufacturing innovation.
Henry Dubina, Telescope's CEO, commented, "Jason's recognition with the LeSueur Memorial Award is a testament to the caliber of scientific leadership at the heart of Telescope. His ability to bridge fundamental chemistry, AI, and automation is what makes our Self-Driving Lab technology possible. We are proud to have a CTO whose vision continues to earn recognition at this level."
About Telescope Innovations
Telescope Innovations Corp. is a developer of reaction sampling technology, intelligent automation and advanced chemical manufacturing technologies. The Company builds and deploys enabling technologies including reaction sampling systems for real-time analysis, flexible robotic platforms, and artificial intelligence software that improves experimental throughput, efficiency, and data quality. The Company's "Self-Driving Labs" are fully autonomous, physical AI platforms that plan, execute, and analyze experiments far more efficiently than traditional manual approaches. Bio-pharmaceutical, high value specialty chemical, and advanced materials companies utilize Telescope's products and services to accelerate the development and optimization of chemical processes, thereby cutting down time and costs from lab to market. For more information, please visit www.telescopeinnovations.com.
On behalf of the Board,
Telescope Innovations Corp.
Forward-Looking Information
This press release may contain forward-looking information within the meaning of applicable Canadian securities laws. Forward-looking information involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Telescope Innovations to be materially different from any future results, performance or achievements expressed or implied by the forward-looking information. These statements relate to future events or future performance, reflect management's current expectations and are based on information currently available to management. A number of factors could cause actual events, performance, or results to differ materially from what is projected in the forward-looking statements, including without limitation: technological risks and uncertainties; market acceptance of Telescope's technology; the Company's ability to retain key personnel; general economic conditions; and other risks detailed in the Company's public filings. The Company does not undertake to update any forward-looking information except in accordance with applicable securities laws.
Neither the Canadian Securities Exchange nor its Regulation Services Provider (as that term is defined in the policies of the CSE) accepts responsibility for the adequacy or accuracy of this release.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/300261
Source: Telescope Innovations Corp.
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, /PRNewswire/ -- Service Corporation International (NYSE: SCI), the largest provider of deathcare products and services in North America, today announced that its Board of Directors has increased the authorized level of repurchases of its common stock by approximately $472 million. When combined with approximately $128 million of authority remaining under the existing program, this represents a total of $600 million of current share repurchase authority effective today.
Cautionary Statement on Forward-Looking Statements
The statements in this press release that are not historical facts are forward-looking statements. These forward-looking statements have been made in reliance on the "safe harbor" protections provided under the Private Securities Litigation Reform Act of 1995. These statements may be accompanied by words such as "believe," "estimate," "project," "expect," "anticipate," or "predict," that convey the uncertainty of future events or outcomes. These statements are based on assumptions that we believe are reasonable; however, many important factors could cause our actual results in the future to differ materially from the forward-looking statements made herein and in any other documents or oral presentations made by, or on behalf of us. There can be no assurance that future dividends will be declared. The actual declaration of future dividends, and the establishment of record and payment dates, is subject to final determination by our Board of Directors each quarter after its review of our financial performance. Important factors which could cause actual results to differ materially from those in forward-looking statements include, among others, restrictions on the payment of dividends under existing or future credit agreements or other financing arrangements; changes in tax laws relating to corporate dividends; a determination by the Board of Directors that the declaration of a dividend is not in the best interests of the Company and its shareholders; an increase in our cash needs or a decrease in available cash; or a deterioration in our financial condition or results. For further information on these and other risks and uncertainties, see our Securities and Exchange Commission filings, including our 2025 Annual Report on Form 10-K. Copies of this document as well as other SEC filings can be obtained from our website at http://www.sci-corp.com. We assume no obligation to publicly update or revise any forward-looking statements made herein or any other forward-looking statements made by us, whether as a result of new information, future events or otherwise.
About Service Corporation International
Service Corporation International (NYSE: SCI), headquartered in Houston, Texas, is North America's leading provider of funeral, cemetery and cremation services, as well as final-arrangement planning in advance, serving approximately 700,000 families each year. Our diversified portfolio of brands provides families and individuals a full range of choices to meet their needs, from simple cremations to full life celebrations and personalized remembrances. Our Dignity Memorial® brand is the name families turn to for professionalism, compassion, and attention to detail that is second to none. At March 31, 2026, we owned and operated 1,487 funeral service locations and 503 cemeteries (of which 314 are combination locations) in 44 states, eight Canadian provinces, the District of Columbia, and Puerto Rico. For more information about Service Corporation International, please visit our website at www.sci-corp.com. For more information about Dignity Memorial®, please visit www.dignitymemorial.com.
For additional information contact: [email protected]
Investors:
Trey Bocage – Assistant Vice President / Treasury and Investor Relations
(713) 525-3454
Andrea Low – Director / Federal Tax and Investor Relations
(713) 525-2811
Media:
Jay Andrew – Assistant Vice President / Corporate Communications
VIENNA, Va.--(BUSINESS WIRE)---- $CVM #Multikine--CEL-SCI and Saudi Amarox to conduct signing ceremony at BIO 2026 for Strategic Agreement to advance commercialization and distribution of Multikine.
