Looking back on specialized consumer services stocks’ Q3 earnings, we examine this quarter’s best and worst performers, including Pool (NASDAQ: POOL) 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 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 4.5% on average since the latest earnings results.

Pool (NASDAQ: POOL)

Founded in 1993 and headquartered in Louisiana, Pool (NASDAQ: POOL) is one of the largest wholesale distributors of swimming pool supplies, equipment, and related leisure products.

Pool reported revenues of $1.43 billion, down 2.8% year on year. This print exceeded analysts’ expectations by 2.1%. Overall, it was a satisfactory quarter for the company with an impressive beat of analysts’ organic revenue estimates.

“We generated third quarter net sales of $1.4 billion, down 3% from the third quarter of 2023, supported by steady demand for maintenance products while the discretionary portions of our business continued to see pressure.” commented Peter D. Arvan, president and CEO.

Unsurprisingly, the stock is down 5.1% since reporting and currently trades at $332.87.

Is now the time to buy Pool? 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 an impressive beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates.

The market seems happy with the results as the stock is up 6% since reporting. It currently trades at $27.03.

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 2.3% since the results and currently trades at $7.81.

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

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 $1.24 billion, up 5.4% year on year. This print beat analysts’ expectations by 1.7%. It was a strong quarter as it also recorded a solid beat of analysts’ EPS estimates and full-year revenue guidance slightly topping analysts’ expectations.

ADT achieved the highest full-year guidance raise among its peers. The stock is up 1.1% since reporting and currently trades at $7.

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

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 number topped analysts’ expectations by 3.3%. Aside from that, it was a mixed quarter with a miss of analysts’ adjusted operating income estimates.

The stock is down 16.2% since reporting and currently trades at $53.09.

Read our full, actionable report on H&R Block 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 has thrived in 2024, spurred by recent rate cuts (0.5% in September and 0.25% each in November and December), 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 the pace and magnitude of future rate cuts as well as potential changes in trade policy and corporate taxes once the Trump administration takes over. The path forward is marked by uncertainty.

Want to invest in winners with rock-solid fundamentals? Check out our Top 5 Growth Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

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