Q4 Earnings Highs And Lows: Frontdoor (NASDAQ:FTDR) Vs The Rest Of The Specialized Consumer Services Stocks
As the Q4 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 Frontdoor (NASDAQ:FTDR) 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 slower Q4; on average, revenues were in line with analyst consensus estimates. while next quarter's revenue guidance was 4.6% below consensus. Inflation progressed towards the Fed's 2% goal at the end of 2023, leading to strong stock market performance. The start of 2024 has been a bumpier ride, as the market switches between optimism and pessimism around rate cuts due to mixed inflation data, and specialized consumer services stocks have had a rough stretch, with share prices down 13.3% on average since the previous earnings results.
Frontdoor (NASDAQ:FTDR)
Established in 2018 as a spin-off from ServiceMaster Global Holdings, Frontdoor (NASDAQ:FTDR) is a provider of home warranty and service plans.
Frontdoor reported revenues of $366 million, up 8% year on year, topping analyst expectations by 1.8%. It was a mixed quarter for the company, with an impressive beat of analysts' earnings estimates but full-year revenue guidance missing analysts' expectations.
The stock is down 10.1% since the results and currently trades at $29.7.
Read our full report on Frontdoor here, it's free.
Best Q4: 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 $98.83 million, up 5.2% year on year, outperforming analyst expectations by 5.5%. It was a very strong quarter for the company, with an impressive beat of analysts' revenue and earnings estimates.
Carriage Services achieved the highest full-year guidance raise among its peers. The stock is down 5.4% since the results and currently trades at $23.74.
Is now the time to buy Carriage Services? Access our full analysis of the earnings results here, it's free.
Weakest Q4: Matthews International (NASDAQ:MATW)
Originally a death care company, Matthews International (NASDAQ:MATW) is a diversified company offering ceremonial services, brand solutions and industrial technologies.
Matthews International reported revenues of $450 million, flat year on year, falling short of analyst expectations by 0.4%. It was a weak quarter for the company, with underwhelming earnings guidance for the full year. Mister Car Wash slightly topped analysts' EPS expectations this quarter despite a same store sales and revenue miss.
The stock is down 20.7% since the results and currently trades at $26.52.
Read our full analysis of Matthews International's results here.
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 16.7% year on year, falling short of analyst expectations by 0.4%. It was a mixed quarter for the company, with a miss of analysts' organic revenue estimates. On the other hand, EPS came in ahead of expectations.
LKQ delivered the fastest revenue growth among its peers. The stock is down 2.6% since the results and currently trades at $49.01.
Read our full, actionable report on LKQ here, it's free.
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 $1.22 billion, down 7.2% year on year, falling short of analyst expectations by 11.4%. It was a weak quarter for the company, with a miss of analysts' revenue estimates.
ADT had the weakest performance against analyst estimates among its peers. The stock is down 5.7% since the results and currently trades at $6.16.
Read our full, actionable report on ADT here, it's free.
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