Q2 Earnings Outperformers: Mister Car Wash (NYSE:MCW) And The Rest Of The Specialized Consumer Services Stocks
Let’s dig into the relative performance of Mister Car Wash (NYSE:MCW) and its peers as we unravel the now-completed Q2 specialized consumer services earnings season.
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 9 specialized consumer services stocks we track reported a weaker Q2. As a group, revenues missed analysts’ consensus estimates by 0.8% while next quarter’s revenue guidance was in line.
Inflation progressed towards the Fed’s 2% goal at the end of 2023, leading to strong stock market performance. On the other hand, 2024 has been a bumpier ride as the market switches between optimism and pessimism around rate cuts and inflation, and specialized consumer services stocks have had a rough stretch. On average, share prices are down 6.3% since the latest earnings results.
Mister Car Wash (NYSE: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 $255 million, up 7.7% year on year. This print was in line with analysts’ expectations, and overall, it was a decent quarter for the company with an impressive beat of analysts’ earnings estimates but underwhelming earnings guidance for the full year.
“We delivered record revenue and adjusted EBITDA in the second quarter. Our subscription business continued to prove its resilience, and the strength of our new Titanium offering drove a healthy increase in revenue per member,” said John Lai, Chairman and CEO of Mister Car Wash.
Mister Car Wash scored the fastest revenue growth of the whole group. Even though it had a great quarter relative to its peers, the market seems discontent with the results. The stock is down 5.6% since reporting and currently trades at $30.34.
Is now the time to buy Mister Car Wash? Access our full analysis of the earnings results here, it’s free.
Best Q2: 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 $102.3 million, up 4.8% year on year, outperforming analysts’ expectations by 7.7%. It was a strong quarter for the company with full-year revenue guidance exceeding analysts’ expectations.
Carriage Services delivered the biggest analyst estimates beat and highest full-year guidance raise among its peers. Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 5.6% since reporting. It currently trades at $30.34.
Is now the time to buy Carriage Services? Access our full analysis of the earnings results here, it’s free.
Weakest 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 $427.8 million, down 10.9% year on year, falling short of analysts’ expectations by 10%. It was a weak quarter for the company with a miss of analysts’ earnings estimates.
Matthews posted the weakest performance against analyst estimates in the group. As expected, the stock is down 12% since the results and currently trades at $24.67.
Read our full analysis of Matthews’s results here.
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 $542 million, up 3.6% year on year, in line with analysts’ expectations. Zooming out, it was a mixed quarter for the company with a solid beat of analysts’ earnings estimates but a miss of analysts’ home service plans estimates.
The stock is up 15.5% since reporting and currently trades at $45.60.
Read our full, actionable report on Frontdoor here, it’s free.
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 $1.03 billion, up 2% year on year, in line with analysts’ expectations. Zooming out, it was a weaker quarter for the company with a miss of analysts’ earnings estimates.
The stock is down 7% since reporting and currently trades at $74.47.
Read our full, actionable report on Service International here, it’s free.
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