As the Q2 earnings season comes to a close, it’s time to take stock of this quarter's best and worst performers in the consumer discretionary industry, including Matthews (NASDAQ:MATW) and its peers.
This sector includes everything from cable TV services to hotel stays to gym memberships. While diverse, the way people buy and experience these products is being upended by the internet and digitization. Consumer discretionary companies are working to adapt to secular trends such as streaming video, online marketplaces for lodging accommodations, and connected fitness. That discretionary purchases are, by definition, something consumers can give up makes it even more imperative for companies in the space to adapt.
The 5 consumer discretionary stocks we track reported a mixed Q2; on average, revenues missed analyst consensus estimates by 3.3%. Stocks, especially growth stocks where cash flows further in the future are more important to the story, had a good end of 2023. But the beginning of 2024 has seen more volatile stock performance due to mixed inflation data, and consumer discretionary stocks have had a rough stretch, with share prices down 10.1% on average since the previous earnings results.
Matthews (NASDAQ:MATW) Originally a death care company, Matthews International (NASDAQ:MATW) is a diversified company offering ceremonial services, brand solutions and industrial technologies.
Matthews reported revenues of $471.2 million, flat year on year, falling short of analysts' expectations by 1.6%. Overall, it was a solid quarter for the company with an impressive beat of analysts' earnings estimates.
The stock is flat since reporting and currently trades at $27.22.
Is now the time to buy Matthews? Find out by reading the original article on StockStory, it's free. Best Q2: Carnival (NYSE:CCL)Boasting outrageous amenities like a planetarium on board its ships, Carnival (NYSE:CCL) is one of the world's largest leisure travel companies and a prominent player in the cruise industry.
Carnival reported revenues of $5.78 billion, up 17.7% year on year, outperforming analysts' expectations by 1.9%. It was a very strong quarter for the company with an impressive beat of analysts' earnings estimates and a narrow beat of analysts' passenger cruise days estimates.
Carnival scored the biggest analyst estimates beat and fastest revenue growth among its peers. The market seems happy with the results as the stock is up 12.3% since reporting. It currently trades at $18.41.
Weakest Q2: Scholastic (NASDAQ:SCHL)Creator of the legendary Scholastic Book Fair, Scholastic (NASDAQ:SCHL) is an international company specializing in children's publishing, education, and media services.
Scholastic reported revenues of $474.9 million, down 10.1% year on year, falling short of analysts' expectations by 14%. It was a weak quarter for the company with a miss of analysts' earnings estimates.
Scholastic posted the weakest performance against analyst estimates and slowest revenue growth in the group. As expected, the stock is down 19.6% since the results and currently trades at $29.41.
Nike (NYSE:NYSE:NKE)Originally selling Japanese Onitsuka Tiger sneakers as Blue Ribbon Sports, Nike (NYSE:NKE) is a global titan in athletic footwear, apparel, equipment, and accessories.
Nike reported revenues of $12.61 billion, down 1.7% year on year, falling short of analysts' expectations by 1.9%. Taking a step back, it was a mixed quarter for the company with a solid beat of analysts' earnings estimates but a miss of analysts' constant currency revenue estimates.
The stock is down 22.8% since reporting and currently trades at $72.70.
Levi's (NYSE:LEVI)Credited for inventing the first pair of blue jeans in 1873, Levi's (NYSE:LEVI) is an apparel company renowned for its iconic denim products and classic American style.
Levi's reported revenues of $1.44 billion, up 7.8% year on year, in line with analysts' expectations. Revenue aside, it was a decent quarter for the company with an impressive beat of analysts' earnings estimates but underwhelming earnings guidance for the full year.
The stock is down 19.2% since reporting and currently trades at $18.74.
This content was originally published on Stock Story
