Although it finished the day slightly in the red, in afternoon trade the InvoCare Limited (ASX: IVC) share price hit an all-time high of $15.49.
This brought the funeral services company's year-to-date return to in excess of 11%.
Why are its shares at an all-time high?
Although the company failed in its bid to crack the U.S. market, investors have looked beyond this and focused on the benefits of its market-leading position in Australia.
In the first-half of FY 2017 InvoCare posted a 13.5% increase in operating earnings to $24.5 million. Its Australian Funerals business was the biggest driver of this growth.
Pleasingly, this level of growth is expected to continue in the future.
Although management expects to lose market share this year, by the end of FY 2018 it expects to recapture it as its Protect & Grow plan starts to take effect.
Ultimately this is expected to lead to long-term double-digit operating earnings growth.
