As the Q1 earnings season comes to a close, it’s time to take stock of this quarter's best and worst performers in the specialized consumer services industry, including Carriage Services (NYSE:CSV) 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. Valuation multiples for many growth stocks have not yet reverted to their early 2021 highs, but the market was optimistic at the end of 2023 due to cooling inflation. The start of 2024 has been a different story as mixed signals have led to market volatility, and specialized consumer services stocks have held roughly steady amidst all this, with share prices up 3.4% on average since the previous earnings results.
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, exceeding analysts' expectations by 4.8%. Despite the top-line beat, it was a decent quarter overall for the company with adjusted EBITDA exceeding analysts' estimates.
Carlos Quezada, Vice Chairman and CEO, stated, “We are pleased to announce another solid performance in the first quarter of 2024, which reflects our consistent focus on executing our five-year strategic objectives. Our preneed cemetery sales team achieved a remarkable 38.4% year-over-year increase in preneed sales, highlighting the continued effectiveness of our cemetery sales growth plan. This solid cemetery performance contributed significantly to an increase in total revenue of 8.4% compared to the previous year.
Carriage Services pulled off the biggest analyst estimates beat of the whole group. The stock is up 13.6% since reporting and currently trades at $29.34.
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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 35.4% since reporting. It currently trades at $1.22.
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 estimates and a miss of analysts' organic revenue estimates.
As expected, the stock is down 7.3% since the results and currently trades at $45.36.
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. Zooming out, it was a decent quarter for the company with strong earnings guidance for the full year.
The stock is down 12.3% since reporting and currently trades at $330.38.
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 $239.2 million, up 5.9% year on year, falling short of analysts' expectations by 1.5%. Zooming out, it was a mixed quarter for the company with a narrow beat of analysts' earnings estimates but underwhelming earnings guidance for the full year.
The stock is up 11.8% since reporting and currently trades at $7.49.
This content was originally published on Stock Story
