Q3 earnings highlights: Service International (NYSE:SCI) vs the rest of the consumer discretionary - specialized consumer services stocks
As the craze of earnings season draws to a close, here’s a look back at some of the most exciting (and some less so) results from Q3. Today, we are looking at consumer discretionary - specialized consumer services stocks, starting with Service International (NYSE:SCI).
The Consumer Discretionary sector, by definition, is made up of companies selling non-essential goods and services. When economic conditions deteriorate or tastes shift, consumers can easily cut back or eliminate these purchases. For long-term investors with five-year holding periods, this creates a structural challenge: the sector is inherently hit-driven, with low switching costs and fickle customers. As a result, only a handful of companies can reliably grow demand and compound earnings over long periods, which is why our bar is high and High Quality ratings are rare. 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 serve customers better.
The 10 consumer discretionary - specialized consumer services stocks we track reported a softer Q3. As a group, revenues missed analysts’ consensus estimates by 0.9% while next quarter’s revenue guidance was 0.8% above.
In light of this news, share prices of the companies have held steady as they are up 4.7% on average since the latest earnings results.
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 $1.11 billion, up 4.6% year on year. This print exceeded analysts’ expectations by 0.6%. Despite the top-line beat, it was still a sluggish quarter for the company with full-year EPS guidance missing analysts’ expectations significantly and EPS guidance for next quarter missing analysts’ expectations.
The market seems disappointed with the results as the stock is down 10.3% since reporting and currently trades at $73.83.
Read our full report on Service International here, it’s free.
Best Q3: 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 $152.9 million, down 11.2% year on year, in line with analysts’ expectations. The business had a solid quarter with a beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates.
The market seems content with the results as the stock is up 4.4% since reporting. It currently trades at $12.67.
Is now the time to buy WeightWatchers? Access our full analysis of the earnings results here, it’s free.
Weakest Q3: 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 $100.3 million, down 2.4% year on year, falling short of analysts’ expectations by 8.4%. It was an underwhelming quarter as it posted full-year revenue guidance missing analysts’ expectations significantly and a significant miss of analysts’ EPS estimates.
Carriage Services delivered the weakest full-year guidance update in the group. As expected, the stock is down 18.6% since the results and currently trades at $29.30.
Read our full analysis of Carriage Services’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 $1.35 billion, up 3.9% year on year. This number beat analysts’ expectations by 2%. It was a satisfactory quarter as it also recorded EPS in line with analysts’ estimates.
The stock is flat since reporting and currently trades at $9.89.
Read our full, actionable report on ADT here, it’s free.
H&R Block (NYSE:HRB)
Founded in 1955 by brothers Henry W. Bloch and Richard A. Bloch, H&R Block (NYSE:HRB) is a tax preparation company offering professional tax assistance and financial solutions to individuals and small businesses.
H&R Block reported revenues of $224.3 million, up 10.2% year on year. This result surpassed analysts’ expectations by 5.5%. Overall, it was a satisfactory quarter as it also put up a decent beat of analysts’ EBITDA estimates.
H&R Block scored the biggest analyst estimate beat of the whole group. The stock is flat since reporting and currently trades at $50.75.
Read our full, actionable report on H&R Block here, it’s free.
Market update
Over the past year, investors have been forced to repeatedly answer the same question: what is the market’s biggest risk? The answer has changed several times, and each shift has reshaped market leadership.
Late in 2025 and early 2026, artificial intelligence became the market’s primary uncertainty. Investors questioned whether AI would erode software pricing power and weaken competitive moats as AI made it easier to replicate once-differentiated products.
By the spring, technology took a back seat to geopolitics. The U.S. conflict with Iran briefly became the market’s dominant narrative, raising concerns about oil prices, inflation, and global growth. But as energy markets remained orderly and fears of a prolonged supply disruption faded, investors quickly turned their focus back to fundamentals.
Want to invest in winners with rock-solid fundamentals? Check out our Hidden Gem Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.