As the Q3 earnings season comes to a close, it’s time to take stock of this quarter’s best and worst performers in the specialized consumer services industry, including Mister Car Wash (NYSE:MCW) 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 strong Q3. As a group, revenues beat analysts’ consensus estimates by 1.1% while next quarter’s revenue guidance was 2% below.
Thankfully, share prices of the companies have been resilient as they are up 6.6% on average since the latest 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 $249.3 million, up 6.5% year on year. This print was in line with analysts’ expectations, and overall, it was a strong quarter for the company with an impressive beat of analysts’ EPS and same-store sales estimates.
“We are pleased with our strong third quarter performance and momentum in the business. Our subscription business remained incredibly resilient, our new premium Titanium offering ramped ahead of expectations, retail sales trends moved in the right direction, and we managed expenses. All of this drove strong sales and profit growth in the third quarter,” commented John Lai, Chairperson and CEO of Mister Car Wash.
Interestingly, the stock is up 5.7% since reporting and currently trades at $7.05.
Is now the time to buy Mister Car Wash? Access our full analysis of the earnings results here, it’s free.
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 $446.7 million, down 7% year on year, outperforming analysts’ expectations by 1.4%. The business had an exceptional quarter with an impressive beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates.
The market seems happy with the results as the stock is up 23.9% since reporting. It currently trades at $31.61.
Is now the time to buy Matthews? Access our full analysis of the earnings results here, it’s free.
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 $242.1 million, down 10% year on year, falling short of analysts’ expectations by 1.6%. It was a mixed quarter as it posted full-year EBITDA guidance topping analysts’ expectations.
Interestingly, the stock is up 2.6% since the results and currently trades at $8.20.
Read our full analysis of 1-800-FLOWERS’s results here.
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 $193.8 million, up 5.4% year on year. This result surpassed analysts’ expectations by 3.3%. Aside from that, it was a mixed quarter as it also logged a decent beat of analysts’ Tax Preparation revenue estimates but a miss of analysts’ adjusted operating income estimates.
The stock is down 12% since reporting and currently trades at $55.78.
Read our full, actionable report on H&R Block 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 $100.7 million, up 11.3% year on year. This print beat analysts’ expectations by 8.1%. Overall, it was a very strong quarter as it also produced a solid beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.
Carriage Services pulled off the biggest analyst estimates beat and fastest revenue growth among its peers. The stock is up 22% since reporting and currently trades at $39.83.
Read our full, actionable report on Carriage Services here, it’s free.
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 has thrived in 2024, spurred by recent rate cuts (0.5% in September and 0.25% each in November and December), 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 the pace and magnitude of future rate cuts as well as potential changes in trade policy and corporate taxes once the Trump administration takes over. The path forward is marked by uncertainty.
Want to invest in winners with rock-solid fundamentals? Check out our Top 5 Growth Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.
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