Reflecting On Specialized Consumer Services Stocks' Q3 Earnings: ADT (NYSE:ADT)

As the Q3 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 ADT (NYSE:ADT) 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 Q3. As a group, revenues beat analysts’ consensus estimates by 1.9% while next quarter’s revenue guidance was in line.

In light of this news, share prices of the companies have held steady. On average, they are relatively unchanged since the latest earnings results.

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 $1.30 billion, up 4.4% year on year. This print was in line with analysts’ expectations, but overall, it was a mixed quarter for the company with a beat of analysts’ EPS estimates but a miss of analysts’ customers estimates.

“ADT again delivered solid revenue growth, robust cash flow, and very strong earnings per share in the third quarter, reflecting the resilience of our business model and our team’s execution of our strategy,” said ADT Chairman, President and CEO, Jim DeVries.

ADT delivered the weakest full-year guidance update of the whole group. Unsurprisingly, the stock is down 6.3% since reporting and currently trades at $8.24.

Read our full report on ADT 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 $318.8 million, down 28.6% year on year, outperforming analysts’ expectations by 9.6%. The business had a very strong quarter with a beat of analysts’ EPS estimates and a solid beat of analysts’ revenue estimates.

Matthews achieved the biggest analyst estimates beat among its peers. The market seems happy with the results as the stock is up 11% since reporting. It currently trades at $27.36.

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 $215.2 million, down 11.1% year on year, falling short of analysts’ expectations by 1.2%. It was a softer quarter as it posted a significant miss of analysts’ EPS estimates and a slight miss of analysts’ revenue estimates.

1-800-FLOWERS delivered the weakest performance against analyst estimates in the group. Interestingly, the stock is up 34.5% since the results and currently trades at $4.70.

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

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 $102.7 million, up 2% year on year. This print topped analysts’ expectations by 1.3%. Aside from that, it was a mixed quarter as it also recorded a narrow beat of analysts’ revenue estimates but full-year EBITDA guidance slightly missing analysts’ expectations.

The stock is flat since reporting and currently trades at $43.98.

Read our full, actionable report on Carriage Services 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 $1.06 billion, up 4.4% year on year. This number beat analysts’ expectations by 1.5%. More broadly, it was a satisfactory quarter as it also produced a decent beat of analysts’ revenue estimates but a miss of analysts’ Funeral revenue estimates.

The stock is up 4.9% since reporting and currently trades at $84.

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

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