What happened?
Shares of funeral services company Carriage Services (NYSE: CSV) fell 17.3% in the morning session after the company reported weaker third-quarter 2026 financial results, with adjusted diluted earnings per share falling to $0.59 from $0.75 in the prior year quarter.
According to a company press release, Carriage Services reported that revenue fell 2.4% year on year to $100.3 million, as comparable cemetery revenue dropped 7.8% due to lower preneed sales production. Both figures missed Wall Street expectations, with revenue falling short of analyst estimates of $109.5 million and adjusted EPS coming in 25.5% below consensus forecasts of $0.79. Carriage Services lowered its full-year revenue guidance to $417.5 million at the midpoint from $440 million and reduced its adjusted EPS guidance to $2.97 at the midpoint.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Carriage Services? Access our full analysis report here, it’s free.
What is the market telling us
Carriage Services’s shares are not very volatile and have only had 2 moves greater than 5% over the last year. Moves this big are rare for Carriage Services and indicate this news significantly impacted the market’s perception of the business.
The biggest move we wrote about over the last year was 6 months ago when the stock dropped 6% on the news that the company reported disappointing first-quarter 2026 financial results that missed Wall Street's expectations for both revenue and profit.
The company's total revenue for the quarter was $106.1 million, slightly down from the previous year and 4.7% below analyst estimates. Profitability also took a hit, with adjusted earnings per share (EPS) coming in at $0.86, a 10.4% decrease from the same quarter last year and missing analyst forecasts. While the company maintained its full-year guidance, the weaker-than-expected quarterly performance and declining free cash flow margin likely concerned investors, overshadowing the stable outlook.
Carriage Services is down 31.7% since the beginning of the year, and at $28.35 per share, it is trading 45.1% below its 52-week high of $51.65 from April 2026. Investors who bought $1,000 worth of Carriage Services’s shares 5 years ago would now be looking at only $578.14.
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