Carriage Services (CSV) Stock Forecast & Price Target

Carriage Services Inc. has demonstrated a positive financial trajectory, with operating revenue increasing 5.2% year-over-year, largely fueled by a robust 21.4% rise in cemetery preneed sales. Additionally, the company's adjusted free cash flow rose by 9.5% to $39.3 million, reflecting improved profitability and operational efficiency. The increase in financial operating EBITDA by 23.5%, coupled with a notable 27.2% growth in financial revenue, underscores the strength of Carriage Services in its market, particularly within the cemetery operations segment.

Carriage Services Inc. has experienced a decline in key financial metrics, with funeral operating EBITDA down 4.8% to $20.6 million and operating income diminishing by 23.5% to $17.5 million, primarily due to increased losses from divestitures and impairment charges. Additionally, net income saw a significant decrease of 33.4% to $6.6 million, which fell short of both internal estimates and consensus predictions. Compounding these issues, the company's pre-need sales are under pressure from macroeconomic factors and a declining death rate, which is affecting at-need funeral volumes and overall business performance.