Looking back on specialized consumer services stocks’ Q1 earnings, we examine this quarter’s best and worst performers, including LKQ (NASDAQ: LKQ) 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 10 specialized consumer services stocks we track reported a slower Q1. As a group, revenues missed analysts’ consensus estimates by 0.6% while next quarter’s revenue guidance was in line.
In light of this news, share prices of the companies have held steady as they are up 4.4% on average since the latest earnings results.
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 $3.46 billion, down 6.5% year on year. This print fell short of analysts’ expectations by 4.1%. Overall, it was a slower quarter for the company with full-year EBITDA guidance missing analysts’ expectations significantly and a slight miss of analysts’ organic revenue estimates.
“We are pleased with our first-quarter performance and are driven to sustain this momentum as we advance our operational excellence initiatives and generate long-term value despite market uncertainties. By embracing these initiatives, even with lower demand, the team's unwavering focus on optimizing the Company’s cost structure is reflected in our year-over-year EBITDA percentage growth” stated Justin Jude, President and Chief Executive Officer.
The stock is down 2.7% since reporting and currently trades at $41.01.
Read our full report on LKQ 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 $426 million, up 12.7% year on year, outperforming analysts’ expectations by 2.1%. The business had a very strong quarter with EBITDA guidance for next quarter exceeding analysts’ expectations and an impressive beat of analysts’ EPS estimates.
Frontdoor achieved the fastest revenue growth and highest full-year guidance raise among its peers. The market seems happy with the results as the stock is up 32.9% since reporting. It currently trades at $54.62.
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 $331.5 million, down 12.6% year on year, falling short of analysts’ expectations by 9%. It was a disappointing quarter as it posted a significant miss of analysts’ EBITDA and EPS estimates.
1-800-FLOWERS delivered the weakest performance against analyst estimates and slowest revenue growth in the group. As expected, the stock is down 10.5% since the results and currently trades at $5.19.
Read our full analysis of 1-800-FLOWERS’s results here.
ADT (NYSE: ADT)
Founded in 1874 and headquartered in Boca Raton, Florida, ADT (NYSE: ADT) is a provider of security, automation, and smart home solutions, offering comprehensive services for home and business protection.
ADT reported revenues of $1.27 billion, up 6.5% year on year. This result topped analysts’ expectations by 2%. More broadly, it was a satisfactory quarter as it also logged an impressive beat of analysts’ EPS estimates but a miss of analysts’ customers estimates.
The stock is up 7.3% since reporting and currently trades at $8.50.
Read our full, actionable report on ADT 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 $427.6 million, down 9.3% year on year. This number came in 1.8% below analysts' expectations. It was a softer quarter as it also recorded a significant miss of analysts’ EPS estimates and full-year EBITDA guidance missing analysts’ expectations.
The stock is up 5.4% since reporting and currently trades at $21.57.
Read our full, actionable report on Matthews here, it’s free.
Market Update
Thanks to the Fed’s rate hikes in 2022 and 2023, inflation has been on a steady path downward, easing back toward that 2% sweet spot. Fortunately (miraculously to some), all this tightening didn’t send the economy tumbling into a recession, so here we are, cautiously celebrating a soft landing. The cherry on top? Recent rate cuts (half a point in September 2024, a quarter in November) have propped up markets, especially after Trump’s November win lit a fire under major indices and sent them to all-time highs. However, there’s still plenty to ponder — tariffs, corporate tax cuts, and what 2025 might hold for the economy.
Want to invest in winners with rock-solid fundamentals? Check out our 9 Best Market-Beating Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.
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