Wrapping up Q3 earnings, we look at the numbers and key takeaways for the specialized consumer services stocks, including Frontdoor (NASDAQ:FTDR) 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 Q3. As a group, revenues missed analysts’ consensus estimates by 19.3% while next quarter’s revenue guidance was in line.
While some specialized consumer services stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 1.7% since the latest earnings results.
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 $618 million, up 14.4% year on year. This print exceeded analysts’ expectations by 1.1%. Despite the top-line beat, it was still a mixed quarter for the company with a decent beat of analysts’ EBITDA estimates but EBITDA guidance for next quarter missing analysts’ expectations.
“Frontdoor is on pace for another year of record financial performance," said Chairman and Chief Executive Officer Bill Cobb.
Frontdoor pulled off the fastest revenue growth of the whole group. Still, the market seems discontent with the results. The stock is down 7.9% since reporting and currently trades at $57.45.
Is now the time to buy Frontdoor? Access our full analysis of the earnings results here, it’s free for active Edge members.
Best Q3: 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 $318.8 million, down 28.6% year on year, outperforming analysts’ expectations by 9.6%. The business had a very strong quarter with a beat of analysts’ EPS estimates and an impressive beat of analysts’ revenue estimates.
Matthews pulled off the biggest analyst estimates beat among its peers. The market seems happy with the results as the stock is up 7.9% since reporting. It currently trades at $26.60.
Is now the time to buy Matthews? Access our full analysis of the earnings results here, it’s free for active Edge members.
Slowest Q3: 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 $215.2 million, down 11.1% year on year, falling short of analysts’ expectations by 1.2%. It was a softer quarter as it posted a significant miss of analysts’ EPS estimates and a slight miss of analysts’ revenue estimates.
Interestingly, the stock is up 20.6% since the results and currently trades at $4.22.
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 $102.7 million, up 2% year on year. This print beat analysts’ expectations by 1.3%. Taking a step back, it was a mixed quarter as it also logged a narrow beat of analysts’ revenue estimates but full-year EBITDA guidance slightly missing analysts’ expectations.
The stock is down 3.1% since reporting and currently trades at $42.23.
Read our full, actionable report on Carriage Services here, it’s free for active Edge members.
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 $203.6 million, up 5% year on year. This number topped analysts’ expectations by 1.5%. Overall, it was a strong quarter as it also recorded a solid beat of analysts’ EBITDA estimates and an impressive beat of analysts’ adjusted operating income estimates.
H&R Block achieved the highest full-year guidance raise among its peers. The stock is down 15.3% since reporting and currently trades at $43.61.
Read our full, actionable report on H&R Block here, it’s free for active Edge members.
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