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Frontdoor (FTDR) Q4 Earnings: What To Expect

StockStory - Tue Feb 27, 1:02AM CST

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Home warranty company Frontdoor (NASDAQ:FTDR) will be announcing earnings results tomorrow before the bell. Here's what to expect.

Last quarter Frontdoor reported revenues of $524 million, up 8.3% year on year, beating analyst revenue expectations by 2.1%. It was a very strong quarter for the company, with an impressive beat of analysts' earnings estimates.

Is Frontdoor buy or sell heading into the earnings? Read our full analysis here, it's free.

This quarter analysts are expecting Frontdoor's revenue to grow 5.9% year on year to $359 million, improving on the 0.3% year-over-year decline in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.04 per share.

Frontdoor Total Revenue

Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. The company has a history of exceeding Wall St's expectations, beating revenue estimates every single time over the past two years on average by 1.6%.

Looking at Frontdoor's peers in the specialized consumer services segment, some of them have already reported Q4 earnings results, giving us a hint what we can expect. Service International delivered top-line growth of 2.7% year on year, beating analyst estimates by 3.2% and Pool reported revenue decline of 8.5% year on year, missing analyst estimates by 1.6%. Service International traded flat on the results, Pool was down 5%.

Read our full analysis of Service International's results here and Pool's results here.

Stocks have been under pressure as inflation (despite slowing) makes their long-dated profits less valuable, and while some of the specialized consumer services stocks have fared somewhat better, they have not been spared, with share price declining 4.7% over the last month. Frontdoor is down 2.2% during the same time, and is heading into the earnings with analyst price target of $41.6, compared to share price of $32.8.

When a company has more cash than it knows what to do with, buying back its own shares can make a lot of sense–as long as the price is right. Luckily, we’ve found one, a low-priced stock that is gushing free cash flow AND buying back shares. Click here to claim your Special Free Report on a fallen angel growth story that is already recovering from a setback.

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