As the Q2 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 WeightWatchers (NASDAQ: WW) 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 Q2. As a group, revenues beat analysts’ consensus estimates by 1.9% while next quarter’s revenue guidance was in line.
While some specialized consumer services stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 3.7% since the latest earnings results.
WeightWatchers (NASDAQ: WW)
Known by many for its old cable television commercials, WeightWatchers (NASDAQ: WW) is a wellness company offering a range of products and services promoting weight loss and healthy habits.
WeightWatchers reported revenues of $189.2 million, down 6.4% year on year. This print exceeded analysts’ expectations by 6.2%. Overall, it was a very strong quarter for the company with a beat of analysts’ EPS and EBITDA estimates.
“The need for effective and sustainable support in weight health has never been more important, and no company is better positioned to meet that need than WeightWatchers,” said Tara Comonte, CEO of WeightWatchers.
WeightWatchers delivered the weakest full-year guidance update of the whole group. Unsurprisingly, the stock is down 31.8% since reporting and currently trades at $26.
Is now the time to buy WeightWatchers? Access our full analysis of the earnings results here, it’s free.
Best Q2: 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 $349.4 million, down 18.3% year on year, outperforming analysts’ expectations by 8.5%. The business had an exceptional quarter with a beat of analysts’ EPS estimates and full-year EBITDA guidance beating analysts’ expectations.
Matthews pulled off the biggest analyst estimates beat among its peers. The market seems content with the results as the stock is up 4.7% since reporting. It currently trades at $25.18.
Is now the time to buy Matthews? Access our full analysis of the earnings results here, it’s free.
Weakest Q2: 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 $3.64 billion, down 1.9% year on year, in line with analysts’ expectations. It was a softer quarter as it posted full-year EPS guidance missing analysts’ expectations.
As expected, the stock is down 17.9% since the results and currently trades at $31.70.
Read our full analysis of LKQ’s results here.
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 $1.11 billion, up 4.6% year on year. This number surpassed analysts’ expectations by 1.6%. More broadly, it was a mixed quarter as it also recorded full-year revenue guidance beating analysts’ expectations but .
The stock is flat since reporting and currently trades at $51.55.
Read our full, actionable report on H&R Block 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 $102.1 million, flat year on year. This print topped analysts’ expectations by 0.8%. It was a strong quarter as it also put up full-year revenue guidance beating analysts’ expectations and a decent beat of analysts’ EBITDA estimates.
Carriage Services pulled off the highest full-year guidance raise among its peers. The stock is up 1.4% since reporting and currently trades at $46.91.
Read our full, actionable report on Carriage Services 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.
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