Consumer Discretionary Stocks Show Mixed Results in Q2 Earnings Season
The second quarter earnings season has come to a close, and it's time to assess the performance of consumer discretionary stocks. This sector includes companies that provide non-essential goods and services, such as cable TV services, hotel stays, and gym memberships.
While these businesses are being disrupted by digitization and secular trends like streaming video and online marketplaces for lodging accommodations, some companies in this space have adapted better than others. According to a review of 136 consumer discretionary stocks, revenues beat analysts' consensus estimates by 2.6%, but share prices have had a rough stretch, down an average of 8% since the latest earnings results.
One standout performer was Apple (NASDAQ:AAPL), which reported revenues of $109.4 billion, up 16.4% year on year. This exceeded analysts' expectations by 1.1%. Smith & Wesson (NASDAQ:SWBI) also had a strong quarter, with revenues of $112.6 million, up 32.3% year on year.
On the other hand, Matthews International (NASDAQ:MATW) reported a disappointing quarter, with revenues down 29.6% year on year. This was a significant miss of analysts' EPS estimates and full-year EBITDA guidance missing analysts' expectations.