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 1-800-FLOWERS (NASDAQ: FLWS).
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 10 specialized consumer services stocks we track reported a slower Q1. As a group, revenues missed analysts’ consensus estimates by 0.6% while next quarter’s revenue guidance was in line.
In light of this news, share prices of the companies have held steady as they are up 3.6% on average since the latest earnings results.
Weakest Q1: 1-800-FLOWERS (NASDAQ: FLWS)
Founded in 1976, 1-800-FLOWERS (NASDAQ: FLWS) is an online retailer of flowers, gifts, and gourmet foods, serving customers globally.
1-800-FLOWERS reported revenues of $331.5 million, down 12.6% year on year. This print fell short of analysts’ expectations by 9%. Overall, it was a disappointing quarter for the company with a significant miss of analysts’ EBITDA and EPS estimates.
"While we are deeply disappointed by the quarterly results, we are steadfast in our commitment to turning this underperformance around," said Jim McCann, Executive Chairman and current Chief Executive Officer of 1-800-FLOWERS.COM,
1-800-FLOWERS delivered the weakest performance against analyst estimates and slowest revenue growth of the whole group. The stock is down 16.2% since reporting and currently trades at $4.86.
Read our full report on 1-800-FLOWERS here, it’s free.
Best Q1: 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 $426 million, up 12.7% year on year, outperforming analysts’ expectations by 2.1%. The business had a very strong quarter with EBITDA guidance for next quarter exceeding analysts’ expectations and an impressive beat of analysts’ EPS estimates.
Frontdoor delivered the fastest revenue growth and highest full-year guidance raise among its peers. The market seems happy with the results as the stock is up 38% since reporting. It currently trades at $56.70.
Is now the time to buy Frontdoor? Access our full analysis of the earnings results here, it’s free.
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 $427.6 million, down 9.3% year on year, falling short of analysts’ expectations by 1.8%. It was a softer quarter as it posted a significant miss of analysts’ EPS estimates and full-year EBITDA guidance missing analysts’ expectations.
Interestingly, the stock is up 9.9% since the results and currently trades at $22.48.
Read our full analysis of Matthews’s results here.
Mister Car Wash (NASDAQ: 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 $261.7 million, up 9.4% year on year. This number surpassed analysts’ expectations by 1.6%. Zooming out, it was a satisfactory quarter as it also logged an impressive beat of analysts’ same-store sales estimates.
The stock is down 3.6% since reporting and currently trades at $6.61.
Read our full, actionable report on Mister Car Wash here, it’s free.
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 $1.07 billion, up 2.8% year on year. This print topped analysts’ expectations by 1.3%. Aside from that, it was a satisfactory quarter as it also recorded a decent beat of analysts’ funeral services performed estimates.
The stock is down 2.1% since reporting and currently trades at $78.06.
Read our full, actionable report on Service International here, it’s free.
Market Update
Thanks to the Fed’s rate hikes in 2022 and 2023, inflation has been on a steady path downward, easing back toward that 2% sweet spot. Fortunately (miraculously to some), all this tightening didn’t send the economy tumbling into a recession, so here we are, cautiously celebrating a soft landing. The cherry on top? Recent rate cuts (half a point in September 2024, a quarter in November) have propped up markets, especially after Trump’s November win lit a fire under major indices and sent them to all-time highs. However, there’s still plenty to ponder — tariffs, corporate tax cuts, and what 2025 might hold for the economy.
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