Home warranty company Frontdoor (NASDAQ:FTDR) will be reporting results tomorrow before market hours. Here’s what you need to know.
Frontdoor beat analysts’ revenue expectations by 4.1% last quarter, reporting revenues of $383 million, up 4.6% year on year. It was an exceptional quarter for the company, with an impressive beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates. It reported 2.12 million home service plans, up 6% year on year.
Is Frontdoor a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Frontdoor’s revenue to grow 10.4% year on year to $417.2 million, improving from the 3% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.38 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Frontdoor has only missed Wall Street’s revenue estimates once over the last two years, exceeding top-line expectations by 1.5% on average.
Looking at Frontdoor’s peers in the specialized consumer services segment, some have already reported their Q1 results, giving us a hint as to what we can expect. ADT delivered year-on-year revenue growth of 6.5%, beating analysts’ expectations by 2%, and Pool reported a revenue decline of 4.4%, falling short of estimates by 2.5%. ADT’s stock price was unchanged after the results while Pool was down 5.7%.
Read our full analysis of ADT’s results here and Pool’s results here.
The outlook for 2025 remains clouded by potential trade policy changes and corporate tax discussions, which could impact business confidence and growth. While some of the specialized consumer services stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 4.8% on average over the last month. Frontdoor is up 4.8% during the same time and is heading into earnings with an average analyst price target of $50.75 (compared to the current share price of $41.18).
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