Looking back on specialized consumer services stocks’ Q2 earnings, we examine this quarter’s best and worst performers, including WeightWatchers (NASDAQ:WW) 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 slower Q2. As a group, revenues missed analysts’ consensus estimates by 0.6% while next quarter’s revenue guidance was in line.
Inflation progressed towards the Fed’s 2% goal at the end of 2023, leading to strong stock market performance. On the other hand, 2024 has been a bumpier ride as the market switches between optimism and pessimism around rate cuts and inflation, and specialized consumer services stocks have had a rough stretch. On average, share prices are down 6.6% since the latest earnings results.
WeightWatchers (NASDAQ:WW) Known by many for its old cable television commercials, WeightWatchers (NASDAQ:WW) is a wellness company offering a range of products and services promoting weight loss and healthy habits.
WeightWatchers reported revenues of $202.1 million, down 10.9% year on year. This print fell short of analysts’ expectations by 3.3%. Overall, it was a softer quarter for the company with full-year revenue guidance missing analysts’ expectations and a miss of analysts’ earnings estimates.
"WeightWatchers has the right strategy to return the business to growth. With a rapidly changing landscape, we are taking decisive actions to navigate through this environment and completely reimagining how we operate," said Sima Sistani, the Company’s CEO.
WeightWatchers delivered the slowest revenue growth and weakest full-year guidance update of the whole group. Unsurprisingly, the stock is down 34.6% since reporting and currently trades at $0.70.
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Best Q2: 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 $102.3 million, up 4.8% year on year, outperforming analysts’ expectations by 7.7%. The business had a strong quarter with full-year revenue guidance exceeding analysts’ expectations.
Carriage Services delivered the biggest analyst estimates beat and highest full-year guidance raise among its peers. The market seems content with the results as the stock is up 1.7% since reporting. It currently trades at $32.68.
Weakest Q2: 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 $427.8 million, down 10.9% year on year, falling short of analysts’ expectations by 10%. It was a disappointing quarter as it posted a miss of analysts’ earnings estimates.
Matthews delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 16.5% since the results and currently trades at $23.41.
Mister Car Wash (NYSE:MCW) Formerly known as Hotshine Holdings, Mister Car Wash (NYSE:MCW) offers car washes across the United States through its conveyorized service.
Mister Car Wash reported revenues of $255 million, up 7.7% year on year. This number was in line with analysts’ expectations. Overall, it was a strong quarter as it also produced an impressive beat of analysts’ earnings estimates.
Mister Car Wash delivered the fastest revenue growth among its peers. The stock is down 21.2% since reporting and currently trades at $6.
Frontdoor (NASDAQ:FTDR) Established in 2018 as a spin-off from ServiceMaster Global Holdings, Frontdoor (NASDAQ:FTDR) is a provider of home warranty and service plans.
Frontdoor reported revenues of $542 million, up 3.6% year on year. This number was in line with analysts’ expectations. Aside from that, it was a softer quarter as it missed of analysts’ home service plans estimates.
The stock is up 21.6% since reporting and currently trades at $48.
This content was originally published on Stock Story
