The end of the earnings season is always a good time to take a step back and see who shined (and who not so much). Let’s take a look at how specialized consumer services stocks fared in Q1, starting with WW (NASDAQ:WW).
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 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, but specialized consumer services stocks have shown resilience, with share prices up 5.8% on average since the previous earnings results.
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, exceeding analysts' expectations by 3.6%. Overall, it was a strong quarter for the company with an impressive beat of analysts' earnings estimates.
“We delivered solid performance in the first quarter with end of period subscribers of 4.0 million, improved retention and engagement in our core business, and continued strong growth in our clinical business with 91 thousand end of period clinical subscribers,” said Sima Sistani, the Company’s CEO.
WW delivered the slowest revenue growth of the whole group. The stock is down 33.3% since reporting and currently trades at $1.26.
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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%. However, it was still a solid quarter for the company with an impressive beat of analysts' earnings estimates.
The stock is flat since reporting and currently trades at $27.35.
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 9.4% since the results and currently trades at $44.32.
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%. More broadly, it was a decent quarter for the company: Carriage Services exceeded analysts' revenue and adjusted EBITDA expectations.
Carriage Services delivered the biggest analyst estimates beat among its peers. The stock is up 11.6% since reporting and currently trades at $28.82.
Service International (NYSE:SCI) Founded in 1962, Service International (NYSE: SCI) is a leading provider of death care products and services in North America.
Service International reported revenues of $1.05 billion, up 1.6% year on year, surpassing analysts' expectations by 2.7%. Overall, it was a good quarter for the company with a decent beat of analysts' earnings estimates.
The stock is up 1.3% since reporting and currently trades at $72.32.
This content was originally published on Stock Story
