As the Q3 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 Q3. As a group, revenues missed analysts’ consensus estimates by 19.3% while next quarter’s revenue guidance was in line.

Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 8.8% 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 $3.50 billion, up 1.3% year on year. This print fell short of analysts’ expectations by 0.9%. Overall, it was a mixed quarter for the company with a solid beat of analysts’ organic revenue estimates but full-year EBITDA guidance missing analysts’ expectations significantly.

“Our solid results this quarter underscore our confidence in our strategy and the momentum we are building toward sustained value creation. We are deploying capital in alignment with our disciplined capital allocation strategy and in support of our multiyear transformation plan. Following the Self Service divestiture, we have reduced our debt by more than $600 million since the end of the second quarter, further fortifying our balance sheet to navigate a challenging macro environment and reinforce a solid foundation for future growth,” stated Rick Galloway, Senior Vice President and Chief Financial Officer.

Unsurprisingly, the stock is down 3.4% since reporting and currently trades at $29.01.

Read our full report on LKQ here, it’s free for active Edge members.

Best Q3: 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 $318.8 million, down 28.6% year on year, outperforming analysts’ expectations by 9.6%. The business had a very strong quarter with a beat of analysts’ EPS estimates and an impressive beat of analysts’ revenue estimates.

Matthews scored the biggest analyst estimates beat among its peers. The market seems content with the results as the stock is up 2.5% since reporting. It currently trades at $25.27.

Is now the time to buy Matthews? Access our full analysis of the earnings results here, it’s free for active Edge members.

Slowest Q3: 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 $215.2 million, down 11.1% year on year, falling short of analysts’ expectations by 1.2%. It was a softer quarter as it posted a significant miss of analysts’ EPS estimates and a slight miss of analysts’ revenue estimates.

Interestingly, the stock is up 7.9% since the results and currently trades at $3.77.

Read our full analysis of 1-800-FLOWERS’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 $203.6 million, up 5% year on year. This result beat analysts’ expectations by 1.5%. Overall, it was a strong quarter as it also produced a solid beat of analysts’ EBITDA estimates and an impressive beat of analysts’ adjusted operating income estimates.

H&R Block scored the highest full-year guidance raise among its peers. The stock is down 19.4% since reporting and currently trades at $41.49.

Read our full, actionable report on H&R Block here, it’s free for active Edge members.

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 $102.7 million, up 2% year on year. This print topped analysts’ expectations by 1.3%. Aside from that, it was a mixed quarter as it also recorded a narrow beat of analysts’ revenue estimates but full-year EBITDA guidance slightly missing analysts’ expectations.

The stock is down 4% since reporting and currently trades at $41.85.

Read our full, actionable report on Carriage Services here, it’s free for active Edge members.

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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