Looking back on specialized consumer services stocks’ Q1 earnings, we examine this quarter’s best and worst performers, including ADT (NYSE: ADT) 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.
Thankfully, share prices of the companies have been resilient as they are up 6.1% on average since the latest earnings results.
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 print exceeded analysts’ expectations by 2%. Overall, it was a satisfactory quarter for the company with a decent beat of analysts’ EPS estimates but a miss of analysts’ customers estimates.
“ADT is off to a very solid start in 2025, demonstrating the resilience of our business model, with continued strong cash flow generation and operating profitability. During the quarter, we again delivered a record recurring monthly revenue balance and customer retention, a testament to the strong demand for ADT’s innovative offerings and premium customer experience,” said ADT Chairman, President and CEO, Jim DeVries.
Interestingly, the stock is up 7.5% since reporting and currently trades at $8.51.
Is now the time to buy ADT? Access our full analysis of the earnings results 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 a solid beat of analysts’ EPS estimates.
Frontdoor pulled off 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 36.3% since reporting. It currently trades at $56.02.
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 estimates and a significant miss of analysts’ 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 5% since the results and currently trades at $5.51.
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 result topped analysts’ expectations by 1.6%. Zooming out, it was a satisfactory quarter as it also recorded a solid beat of analysts’ same-store sales estimates but full-year revenue guidance meeting analysts’ expectations.
The stock is down 2.3% since reporting and currently trades at $6.70.
Read our full, actionable report on Mister Car Wash 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 missed analysts’ expectations by 1.8%. Overall, it was a softer quarter as it also logged a significant miss of analysts’ EPS estimates and full-year EBITDA guidance missing analysts’ expectations.
The stock is up 22.8% since reporting and currently trades at $25.12.
Read our full, actionable report on Matthews here, it’s free.
Market Update
As a result of the Fed’s rate hikes in 2022 and 2023, inflation has come down from frothy levels post-pandemic. The general rise in the price of goods and services is trending towards the Fed’s 2% goal as of late, which is good news. The higher rates that fought inflation also didn't slow economic activity enough to catalyze a recession. So far, soft landing. This, combined with recent rate cuts (half a percent in September 2024 and a quarter percent in November 2024) have led to strong stock market performance in 2024. The icing on the cake for 2024 returns was Donald Trump’s victory in the U.S. Presidential Election in early November, sending major indices to all-time highs in the week following the election. Still, debates around the health of the economy and the impact of potential tariffs and corporate tax cuts remain, leaving much uncertainty around 2025.
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