Wrapping up Q2 earnings, we look at the numbers and key takeaways for the specialized consumer services stocks, including Mister Car Wash (NASDAQ: MCW) 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 satisfactory 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 1.9% since the latest earnings results.
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 $265.4 million, up 4.1% year on year. This print fell short of analysts’ expectations by 2.3%. Overall, it was a softer quarter for the company with a significant miss of analysts’ EPS and same-store sales estimates.
“Fueled by the strength of our UWC subscription model and the solid execution of our teams, we delivered our ninth consecutive quarter of positive comp-store sales growth in the second quarter—even amidst a challenging retail environment. Our membership base grew 5% year-over-year, underscoring the effectiveness of our model in converting retail traffic into a robust stream of recurring revenue,” commented John Lai, Chairperson, President and CEO of
Mister Car Wash delivered the weakest performance against analyst estimates of the whole group. Unsurprisingly, the stock is down 7.1% since reporting and currently trades at $5.71.
Read our full report on Mister Car Wash 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 delivered the biggest analyst estimates beat among its peers. However, the results were likely priced into the stock as it’s traded sideways since reporting. Shares currently sit at $23.94.
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 significantly and a significant miss of analysts’ EPS estimates.
As expected, the stock is down 16.7% since the results and currently trades at $32.16.
Read our full analysis of LKQ’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 $1.29 billion, up 6.8% year on year. This print topped analysts’ expectations by 0.9%. Zooming out, it was a mixed quarter as it also produced a beat of analysts’ EPS estimates but full-year revenue guidance meeting analysts’ expectations.
The stock is up 4.3% since reporting and currently trades at $8.79.
Read our full, actionable report on ADT here, it’s free.
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 result beat analysts’ expectations by 6.2%. It was a very strong quarter as it also produced an impressive beat of analysts’ EBITDA estimates and full-year EBITDA guidance exceeding analysts’ expectations.
WeightWatchers had the weakest full-year guidance update among its peers. The stock is down 11.3% since reporting and currently trades at $33.79.
Read our full, actionable report on WeightWatchers here, it’s free.
Market Update
Thanks to the Fed’s rate hikes in 2022 and 2023, inflation has been on a steady path downward, easing back toward that 2% sweet spot. Fortunately (miraculously to some), all this tightening didn’t send the economy tumbling into a recession, so here we are, cautiously celebrating a soft landing. The cherry on top? Recent rate cuts (half a point in September 2024, a quarter in November) have propped up markets, especially after Trump’s November win lit a fire under major indices and sent them to all-time highs. However, there’s still plenty to ponder — tariffs, corporate tax cuts, and what 2025 might hold for the economy.
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