As the Q4 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 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 11 specialized consumer services stocks we track reported a mixed Q4. As a group, revenues beat analysts’ consensus estimates by 0.6% while next quarter’s revenue guidance was 0.5% below.
Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 9.5% 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 $3.36 billion, down 4.1% year on year. This print fell short of analysts’ expectations by 2%, but it was still a satisfactory quarter for the company with an impressive beat of analysts’ adjusted operating income estimates.
“The LKQ team focused on our core strengths to manage difficult market conditions in 2024 and position the Company for greater success in the future. I am proud of the team’s strong finish. Specifically, our Europe segment achieved an EBITDA margin of 10.1% in the quarter, which is a record for the segment in the fourth quarter. This was the third consecutive quarter the Europe segment attained double-digit EBITDA margins, and the Europe segment achieved its highest level of EBITDA dollars for a full year in 2024,” stated Justin Jude, President and Chief Executive Officer.
The stock is up 5% since reporting and currently trades at $41.35.
Is now the time to buy LKQ? Access our full analysis of the earnings results here, it’s free.
Best Q4: 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 $383 million, up 4.6% year on year, outperforming analysts’ expectations by 4.1%. The business had an exceptional quarter with a solid beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.
Frontdoor delivered the highest full-year guidance raise among its peers. Although it had a fine quarter compared to its peers, the market seems unhappy with the results as the stock is down 31.7% since reporting. It currently trades at $38.98.
Is now the time to buy Frontdoor? Access our full analysis of the earnings results here, it’s free.
Weakest Q4: 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 $775.5 million, down 5.7% year on year, falling short of analysts’ expectations by 3.4%. It was a disappointing quarter as it posted full-year EBITDA guidance missing analysts’ expectations and a significant miss of analysts’ EPS estimates.
As expected, the stock is down 33.9% since the results and currently trades at $5.82.
Read our full analysis of 1-800-FLOWERS’s results here.
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 $401.8 million, down 10.7% year on year. This print came in 5.9% below analysts' expectations. It was a softer quarter as it also logged a significant miss of analysts’ EPS estimates and a miss of analysts’ EBITDA estimates.
Matthews had the weakest performance against analyst estimates and slowest revenue growth among its peers. The stock is down 22.2% since reporting and currently trades at $22.95.
Read our full, actionable report on Matthews 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 $97.7 million, down 1.1% year on year. This number topped analysts’ expectations by 1%. Taking a step back, it was a mixed quarter as it also recorded a solid beat of analysts’ EPS estimates but full-year revenue guidance missing analysts’ expectations significantly.
Carriage Services had the weakest full-year guidance update among its peers. The stock is down 5.3% since reporting and currently trades at $38.99.
Read our full, actionable report on Carriage Services here, it’s free.
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