Wrapping up Q4 earnings, we look at the numbers and key takeaways for the specialized consumer services stocks, including WeightWatchers (NASDAQ:WW) 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 mixed Q4. As a group, revenues along with next quarter’s revenue guidance were in line with analysts’ consensus estimates.
While some specialized consumer services stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 3.2% since the latest earnings results.
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 $184.4 million, down 10.5% year on year. This print exceeded analysts’ expectations by 6.5%. Overall, it was a strong quarter for the company with an impressive beat of analysts’ EPS estimates.
"We are pleased with the momentum in our Clinical business in the Fourth Quarter, reflecting the increasing demand for comprehensive weight management solutions. As more people seek sustainable approaches—including those using or transitioning off medication—our unique combination of science-backed behavioral support, clinical care, and engaged global community allows us to deliver the right solutions at the right time. I am grateful for the Board’s trust in me to lead WeightWatchers through this next phase, and I look forward to building on our progress, working alongside our incredible team, and driving meaningful impact for our members," said Tara Comonte, President and CEO.
WeightWatchers pulled off the biggest analyst estimates beat of the whole group. Investor expectations, however, were likely higher than Wall Street’s published projections, leaving some wishing for even better results (analysts’ consensus estimates are those published by big banks and advisory firms, not the investors who make buy and sell decisions). The stock is down 67.9% since reporting and currently trades at $0.26.
Is now the time to buy WeightWatchers? Access our full analysis of the earnings results here, it’s free.
Best Q4: 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 $426 million, up 12.7% year on year, outperforming analysts’ expectations by 2.1%. The business had a very strong quarter with EBITDA guidance for next quarter exceeding analysts’ expectations and an impressive beat of analysts’ EPS estimates.
Frontdoor scored the fastest revenue growth and highest full-year guidance raise among its peers. The market seems happy with the results as the stock is up 40% since reporting. It currently trades at $57.53.
Is now the time to buy Frontdoor? Access our full analysis of the earnings results here, it’s free.
Weakest Q4: 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 $331.5 million, down 12.6% year on year, falling short of analysts’ expectations by 9%. It was a disappointing quarter as it posted a significant miss of analysts’ EBITDA and EPS estimates.
1-800-FLOWERS delivered the weakest performance against analyst estimates and slowest revenue growth in the group. As expected, the stock is down 12.2% since the results and currently trades at $5.09.
Read our full analysis of 1-800-FLOWERS’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 $3.46 billion, down 6.5% year on year. This print came in 4.1% below analysts' expectations. It was a slower quarter as it also recorded full-year EBITDA guidance missing analysts’ expectations and a slight miss of analysts’ organic revenue estimates.
The stock is down 9.4% since reporting and currently trades at $38.15.
Read our full, actionable report on LKQ here, it’s free.
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 $1.07 billion, down 4.4% year on year. This number missed analysts’ expectations by 2.5%. Overall, it was a slower quarter as it also logged a miss of analysts’ organic revenue and EPS estimates.
The stock is down 3.9% since reporting and currently trades at $297.10.
Read our full, actionable report on Pool here, it’s free.
Market Update
In response to the Fed’s rate hikes in 2022 and 2023, inflation has been gradually trending down from its post-pandemic peak, trending closer to the Fed’s 2% target. Despite higher borrowing costs, the economy has avoided flashing recessionary signals. This is the much-desired soft landing that many investors hoped for. The recent rate cuts (0.5% in September and 0.25% in November 2024) have bolstered the stock market, making 2024 a strong year for equities. Donald Trump’s presidential win in November sparked additional market gains, sending indices to record highs in the days following his victory. However, debates continue over possible tariffs and corporate tax adjustments, raising questions about economic stability in 2025.
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