Q3 Earnings Outperformers: Carriage Services (NYSE:CSV) And The Rest Of The Specialized Consumer Services Stocks
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 Q3. Today, we are looking at specialized consumer services stocks, starting with Carriage Services (NYSE:CSV).
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 5.1% on average since the latest earnings results.
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 exceeded analysts’ expectations by 8.1%. Overall, it was a very strong quarter for the company with an impressive beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates.
Carlos Quezada, Vice Chairman and CEO, stated, “I am pleased to announce that our growth continues with another strong quarter of performance. Our cemetery sales team achieved a notable increase of 27.1% year-over-year in preneed sales, affirming the continued effectiveness of our cemetery sales growth strategy. Together with an increase of 3.1% in our funeral average revenue per contract, these factors significantly propelled our total revenue, which grew by 11.3% over the same period last year. This marks the third straight quarter of exceeding $100 million of revenue, a first for Carriage.
Carriage Services Total Revenue
Carriage Services pulled off the biggest analyst estimates beat and fastest revenue growth of the whole group. Unsurprisingly, the stock is up 19.2% since reporting and currently trades at $38.92.
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 a solid beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.
Matthews Total Revenue
The market seems happy with the results as the stock is up 6.2% since reporting. It currently trades at $27.10.
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.
As expected, the stock is down 6.8% since the results and currently trades at $7.45.
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 $3.58 billion, flat year on year. This number lagged analysts' expectations by 1.9%. More broadly, it was a mixed quarter as it also produced a decent beat of analysts’ adjusted operating income estimates but full-year EPS guidance missing analysts’ expectations.
LKQ had the weakest performance against analyst estimates among its peers. The stock is down 3.6% since reporting and currently trades at $36.42.
Founded in 1993 and headquartered in Louisiana, Pool (NASDAQ:POOL) is one of the largest wholesale distributors of swimming pool supplies, equipment, and related leisure products.
Pool reported revenues of $1.43 billion, down 2.8% year on year. This result surpassed analysts’ expectations by 2.1%. Overall, it was a satisfactory quarter as it also put up a solid beat of analysts’ organic revenue estimates.
The stock is down 5.7% since reporting and currently trades at $330.99.
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.
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