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Specialized Consumer Services Stocks Q1 In Review: Mister Car Wash (NYSE:MCW) Vs Peers


Radek Strnad /
2024/07/09 3:39 am EDT

As the craze of earnings season draws to a close, here's a look back at some of the most exciting (and some less so) results from Q1. Today, we are looking at specialized consumer services stocks, starting with Mister Car Wash (NYSE:MCW).

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 while some of the specialized consumer services stocks have fared somewhat better than others, they collectively declined, with share prices falling 3.3% on average since the previous earnings results.

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%. It was a mixed quarter for the company, with a narrow beat of analysts' earnings estimates but underwhelming earnings guidance for the full year.

“Our overall results in the first quarter were in line with expectations, and we are executing against our strategic initiatives to drive profitable growth. In the first quarter, our subscription business remained incredibly resilient, growth in our new Titanium membership package was very strong, and we opened a record number of new greenfields for any first quarter in our history,” said John Lai, Chairman and CEO of Mister Car Wash.

Mister Car Wash Total Revenue

The stock is up 2.8% since the results and currently trades at $6.89.

Read our full report on Mister Car Wash 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 9.9% since the results and currently trades at $33.8.

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 5.9% since the results and currently trades at $9.57.

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

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, with revenue and adjusted EBITDA exceeding analysts' estimates.

Carriage Services pulled off the biggest analyst estimates beat among its peers. The stock is up 1.9% since the results and currently trades at $26.31.

Read our full, actionable report on Carriage Services 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 $471.2 million, down 0.1% year on year, falling short of analysts' expectations by 1.6%. It was a weak quarter for the company, with revenue and EPS falling below analysts' estimates.

Matthews had the weakest performance against analyst estimates among its peers. The stock is down 11.3% since the results and currently trades at $24.03.

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

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