As the Q1 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 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 weaker Q1. As a group, revenues missed analysts’ consensus estimates by 0.5% while next quarter’s revenue guidance was in line.

Inflation progressed towards the Fed’s 2% goal at the end of 2023, leading to strong stock market performance. On the other hand, 2024 has been a bumpier ride as the market switches between optimism and pessimism around rate cuts and inflation, and while some specialized consumer services stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 2.9% 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 $2.18 billion, up 4.4% year on year. This print exceeded analysts’ expectations by 2.2%. Despite the top-line beat, it was still a mixed quarter for the company with a decent beat of analysts’ earnings estimates but a miss of analysts’ Wave Financial revenue estimates.

"There are many things to be pleased about in the quarter, from our strong DIY performance, virtual tax growth, and positive trends in small business, to important progress for both Spruce and Wave. At the same time, I know we can execute better to improve the Assisted client experience for so many consumers who are choosing H&R Block," said Jeff Jones, H&R Block's president and chief executive officer.

Interestingly, the stock is up 16.6% since reporting and currently trades at $57.37.

Is now the time to buy H&R Block? Access our full analysis of the earnings results here, it’s free.

Best Q1: 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 $102.3 million, up 4.8% year on year, outperforming analysts’ expectations by 7.7%. It was a strong quarter for the company with full-year revenue guidance exceeding analysts’ expectations.

Carriage Services achieved the biggest analyst estimates beat and highest full-year guidance raise among its peers. Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 5.6% since reporting. It currently trades at $30.34.

Is now the time to buy Carriage Services? Access our full analysis of the earnings results here, it’s free.

Weakest Q1: 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 $427.8 million, down 10.9% year on year, falling short of analysts’ expectations by 10%. It was a weak quarter for the company with a miss of analysts’ earnings estimates.

Matthews posted the weakest performance against analyst estimates in the group. As expected, the stock is down 12% since the results and currently trades at $24.67.

Read our full analysis of Matthews’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 $1.20 billion, up 3.1% year on year, in line with analysts’ expectations. Overall, it was a solid quarter for the company with an impressive beat of analysts’ earnings estimates and in-line earnings guidance for the full year.

The stock is down 8.7% since reporting and currently trades at $7.10.

Read our full, actionable report on ADT here, it’s free.

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 $542 million, up 3.6% year on year, in line with analysts’ expectations. Zooming out, it was a mixed quarter for the company with a solid beat of analysts’ earnings estimates but a miss of analysts’ home service plans estimates.

The stock is up 15.5% since reporting and currently trades at $45.60.

Read our full, actionable report on Frontdoor here, it’s free.

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