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Specialized Consumer Services Stocks Q3 Results: Benchmarking H&R Block (NYSE:HRB)

HRB Cover Image

As the craze of earnings season draws to a close, here’s a look back at some of the most exciting (and some less so) results from Q3. Today, we are looking at specialized consumer services stocks, starting with H&R Block (NYSE: HRB).

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 strong Q3. As a group, revenues beat analysts’ consensus estimates by 1.1% while next quarter’s revenue guidance was 2% below.

In light of this news, share prices of the companies have held steady as they are up 4.2% on average since the latest earnings results.

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 $193.8 million, up 5.4% year on year. This print exceeded analysts’ expectations by 3.3%. Despite the top-line beat, it was still a mixed quarter for the company with a decent beat of analysts’ Tax Preparation revenue estimates but a miss of analysts’ adjusted operating income estimates.

"We had a good start to the year and I am pleased with our performance in the quarter," said Jeff Jones, president and chief executive officer.

H&R Block Total Revenue

Unsurprisingly, the stock is down 15% since reporting and currently trades at $53.89.

Is now the time to buy H&R Block? Access our full analysis of the earnings results here, it’s free.

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 $446.7 million, down 7% year on year, outperforming analysts’ expectations by 1.4%. The business had an exceptional quarter with a solid beat of analysts’ EPS and EBITDA estimates.

Matthews Total Revenue

The market seems happy with the results as the stock is up 8.6% since reporting. It currently trades at $27.71.

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

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 $242.1 million, down 10% year on year, falling short of analysts’ expectations by 1.6%. It was a mixed quarter as it posted full-year EBITDA guidance topping analysts’ expectations but a miss of analysts’ EBITDA estimates.

As expected, the stock is down 4.9% since the results and currently trades at $7.60.

Read our full analysis of 1-800-FLOWERS’s results here.

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 $1.01 billion, up 1.2% year on year. This result was in line with analysts’ expectations. More broadly, it was a mixed quarter as it also logged a narrow beat of analysts’ funeral services performed estimates but a miss of analysts’ Funeral revenue estimates.

The stock is up 10.3% since reporting and currently trades at $84.01.

Read our full, actionable report on Service International 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 $100.7 million, up 11.3% year on year. This number beat analysts’ expectations by 8.1%. Overall, it was a very strong quarter as it also put up an impressive beat of analysts’ EPS and EBITDA estimates.

Carriage Services achieved the biggest analyst estimates beat and fastest revenue growth among its peers. The stock is up 16.4% since reporting and currently trades at $38.01.

Read our full, actionable report on Carriage Services here, it’s free.


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