Q3 Earnings Outperformers: H&R Block (NYSE:HRB) And The Rest Of The Specialized Consumer Services Stocks

As the Q3 earnings season wraps, let’s dig into this quarter’s best and worst performers in the specialized consumer services industry, 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 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 2.4% since the latest 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 $203.6 million, up 5% year on year. This print exceeded analysts’ expectations by 1.5%. Overall, it was a strong quarter for the company with a solid beat of analysts’ EBITDA estimates.

"Fiscal 2026 is off to a strong start, not only in the financial results we are reporting but also in the plans we are preparing to execute in the coming quarters," said Jeff Jones, president and chief executive officer.

H&R Block achieved the highest full-year guidance raise of the whole group. Investor expectations, however, were likely higher than Wall Street’s published projections, leaving some wishing for even better results (analysts’ consensus estimates are those published by big banks and advisory firms, not the investors who make buy and sell decisions). The stock is down 15.4% since reporting and currently trades at $43.53.

Is now the time to buy H&R Block? 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 scored the biggest analyst estimates beat among its peers. The market seems happy with the results as the stock is up 9.5% since reporting. It currently trades at $27.00.

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 33.3% since the results and currently trades at $4.66.

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%. Aside from that, it was a mixed quarter as it also recorded a narrow beat of analysts’ revenue estimates but full-year EBITDA guidance slightly missing analysts’ expectations.

The stock is flat since reporting and currently trades at $43.90.

Read our full, actionable report on Carriage Services here, it’s free for active Edge members.

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 $3.50 billion, up 1.3% year on year. This result lagged analysts' expectations by 0.9%. Taking a step back, it was a mixed quarter as it also logged a solid beat of analysts’ organic revenue estimates but full-year EBITDA guidance missing analysts’ expectations significantly.

The stock is flat since reporting and currently trades at $29.91.

Read our full, actionable report on LKQ here, it’s free for active Edge members.

Market Update

Thanks to the Fed’s series of rate hikes in 2022 and 2023, inflation has cooled significantly from its post-pandemic highs, drawing closer to the 2% goal. This disinflation has occurred without severely impacting economic growth, suggesting the success of a soft landing. The stock market thrived in 2024, spurred by recent rate cuts (0.5% in September and 0.25% in November), and a notable surge followed Donald Trump’s presidential election win in November, propelling indices to historic highs. Nonetheless, the outlook for 2025 remains clouded by potential trade policy changes and corporate tax discussions, which could impact business confidence and growth. The path forward holds both optimism and caution as new policies take shape.

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