Looking back on specialized consumer services stocks' Q1 earnings, we examine this quarter's best and worst performers, including Pool (NASDAQ:POOL) and its peers.
Some consumer discretionary companies don’t fall neatly into a category because their products or services are unique. Although their offerings may be niche, these companies have often found more efficient or technology-enabled ways of doing or selling something that has existed for a while. Technology can be a double-edged sword, though, as it may lower the barriers to entry for new competitors and allow them to do serve customers better.
The 11 specialized consumer services stocks we track reported a mixed Q1; on average, revenues beat analyst consensus estimates by 0.6%. while next quarter's revenue guidance was in line with consensus. Stocks--especially those trading at higher multiples--had a strong end of 2023, but 2024 has seen periods of volatility. Mixed signals about inflation have led to uncertainty around rate cuts, and specialized consumer services stocks have held roughly steady amidst all this, with share prices up 0.2% on average since the previous earnings results.
Pool (NASDAQ:POOL) Founded in 1993 and headquartered in Louisiana, Pool (NASDAQ:POOL) is one of the largest wholesale distributors of swimming pool supplies, equipment, and related leisure products.
Pool reported revenues of $1.12 billion, down 7.1% year on year, in line with analysts' expectations. Overall, it was a decent quarter for the company with strong earnings guidance for the full year.
“For the fourth consecutive year, we exceeded $1.0 billion of net sales in the first quarter despite headwinds that included challenges from current macroeconomic conditions and mixed weather. We also posted strong cash flows from operations of $145.4 million, a 41% improvement from last year, and added four additional locations to our expansive sales center network. Our team is energized for the swimming pool season ahead and we remain focused on our strategic goals, including organic growth of our sales center network and investments that provide our customers with convenient access to our broad assortment of products and tools to help them grow. With the introduction of new offerings from our Pool360 digital ecosystem, our customers are positioned with more capabilities for a successful year,” commented Peter D. Arvan, president and CEO.
The stock is down 12.8% since reporting and currently trades at $328.65.
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Best Q1: WW (NASDAQ:WW) Formerly known as Weight Watchers, WW (NASDAQ:WW) is a wellness company offering a range of products and services promoting weight loss and healthy habits.
WW reported revenues of $206.5 million, down 14.6% year on year, outperforming analysts' expectations by 3.6%. It was a strong quarter for the company with an impressive beat of analysts' earnings estimates.
Although it had a great quarter compared its peers, the market seems unhappy with the results as the stock is down 34.9% since reporting. It currently trades at $1.23.
Weakest Q1: LKQ (NASDAQ:LKQ) A global distributor of vehicle parts and accessories, LKQ (NASDAQ:LKQ) offers its customers a comprehensive selection of high-quality, affordably priced automobile products.
LKQ reported revenues of $3.70 billion, up 10.6% year on year, falling short of analysts' expectations by 1.6%. It was a weak quarter for the company with a miss of analysts' earnings and organic revenue estimates.
As expected, the stock is down 10.5% since the results and currently trades at $43.80.
Carriage Services (NYSE:CSV) Established in 1991, Carriage Services (NYSE:CSV) is a provider of funeral and cemetery services in the United States.
Carriage Services reported revenues of $103.5 million, up 8.4% year on year, surpassing analysts' expectations by 4.8%. Overall, it was a mixed quarter for the company: Revenue and adjusted EBITDA exceeded expectations. On the other hand, EPS missed.
Carriage Services delivered the biggest analyst estimates beat among its peers. The stock is up 7.1% since reporting and currently trades at $27.66.
H&R Block (NYSE:HRB) Founded in 1955 by brothers Henry W. Bloch and Richard A. Bloch, H&R Block (NYSE:HRB) is a tax preparation company offering professional tax assistance and financial solutions to individuals and small businesses.
H&R Block reported revenues of $2.18 billion, up 4.4% year on year, surpassing analysts' expectations by 2.2%. Zooming out, it was an ok quarter for the company with a decent beat of analysts' earnings estimates but a miss of analysts' Wave Financial revenue estimates.
H&R Block delivered the highest full-year guidance raise among its peers. The stock is up 8.7% since reporting and currently trades at $53.47.
This content was originally published on Stock Story
