The end of the earnings season is always a good time to take a step back and see who shined (and who not so much). Let’s take a look at how specialized consumer services stocks fared in Q1, starting with Pool (NASDAQ:POOL).
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 3.8% on average since the latest earnings results.
Pool (NASDAQ:POOL)
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 $1.07 billion, down 4.4% year on year. This print fell short of analysts’ expectations by 2.5%. Overall, it was a slower quarter for the company with a miss of analysts’ organic revenue estimates and a miss of analysts’ EPS estimates.
“Execution of our long-term strategic initiatives and organic growth investments contributed positively to our performance this quarter, and our team generated over $1.0 billion in net sales, highlighting the strength and resiliency of our business. During the quarter, we continued to expand our sales center network by adding two greenfield locations, optimizing our supply chain capabilities and further expanding our suite of premium product offerings. Combined with further integration of our digital platform, these initiatives position us to capture available demand that allows us to outperform the market while providing a best-in-class customer experience,” commented Peter D. Arvan, president and CEO.
Unsurprisingly, the stock is down 3% since reporting and currently trades at $299.99.
Read our full report on Pool 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 delivered 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 39.2% since reporting. It currently trades at $57.20.
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 11.2% since the results and currently trades at $5.15.
Read our full analysis of 1-800-FLOWERS’s results here.
Mister Car Wash (NASDAQ: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 $261.7 million, up 9.4% year on year. This print beat analysts’ expectations by 1.6%. Taking a step back, it was a satisfactory quarter as it also logged an impressive beat of analysts’ same-store sales estimates.
The stock is down 2% since reporting and currently trades at $6.72.
Read our full, actionable report on Mister Car Wash here, it’s free.
Service International (NYSE:SCI)
Founded in 1962, Service International (NYSE: SCI) is a leading provider of death care products and services in North America.
Service International reported revenues of $1.07 billion, up 2.8% year on year. This result surpassed analysts’ expectations by 1.3%. Aside from that, it was a satisfactory quarter as it also produced a decent beat of analysts’ funeral services performed estimates.
The stock is flat since reporting and currently trades at $79.83.
Read our full, actionable report on Service International 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 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.
Want to invest in winners with rock-solid fundamentals? Check out our Top 5 Quality Compounder Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.