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Winners And Losers Of Q1: H&R Block (NYSE:HRB) Vs The Rest Of The Specialized Consumer Services Stocks


Max Juang /
2024/07/08 3:43 am EDT

Looking back on specialized consumer services stocks' Q1 earnings, we examine this quarter's best and worst performers, including H&R Block (NYSE:HRB) 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 while some of the specialized consumer services stocks have fared somewhat better than others, they collectively declined, with share prices falling 3% on average since the previous earnings results.

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, topping analysts' expectations by 2.2%. 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.

"There are many things to be pleased about in the quarter, from our strong DIY performance, virtual tax growth, and positive trends in small business, to important progress for both Spruce and Wave. At the same time, I know we can execute better to improve the Assisted client experience for so many consumers who are choosing H&R Block," said Jeff Jones, H&R Block's president and chief executive officer.

H&R Block Total Revenue

H&R Block achieved the highest full-year guidance raise of the whole group. The stock is up 11.2% since the results and currently trades at $54.72.

Is now the time to buy H&R Block? Access our full analysis of the earnings results 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 $378 million, up 3% year on year, in line with analysts' expectations. It was a decent quarter for the company, with an impressive beat of analysts' earnings estimates but a miss of analysts' home service plans estimates.

Frontdoor Total Revenue

Frontdoor had the weakest full-year guidance update among its peers. The stock is up 11% since the results and currently trades at $34.15.

Is now the time to buy Frontdoor? Access our full analysis of the earnings results here, it's free.

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 $379.4 million, down 9.1% year on year, falling short of analysts' expectations by 1.2%. It was a weak quarter for the company: Its revenue, operating margin, and EPS fell short of Wall Street's estimates.

The stock is up 5.1% since the results and currently trades at $9.5.

Read our full analysis of 1-800-FLOWERS's results here.

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, down 0.1% year on year, falling short of analysts' expectations by 1.6%. It was a mixed quarter for the company: Its revenue missed analysts' expectations. On the other hand, EPS beat.

Matthews had the weakest performance against analyst estimates among its peers. The stock is down 11.6% since the results and currently trades at $23.95.

Read our full, actionable report on Matthews here, it's free.

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%. It was a strong quarter for the company: Its revenue and EPS outperformed Wall Street's expectations.

Carriage Services delivered the biggest analyst estimates beat among its peers. The stock is up 2.6% since the results and currently trades at $26.5.

Read our full, actionable report on Carriage Services here, it's free.

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