Home warranty company Frontdoor (NASDAQ: FTDR) will be reporting results this Tuesday before market open. Here’s what you need to know.
Frontdoor beat analysts’ revenue expectations by 2.1% last quarter, reporting revenues of $426 million, up 12.7% year on year. It was a very strong quarter for the company, with EBITDA guidance for next quarter exceeding analysts’ expectations and a solid beat of analysts’ EPS estimates. It reported 2.1 million home service plans, up 7.1% 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 11.3% year on year to $603.3 million, improving from the 3.6% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.45 per share.
The majority of analysts covering the company have 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 1.6% on average.
Looking at Frontdoor’s peers in the specialized consumer services segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Service International delivered year-on-year revenue growth of 3%, beating analysts’ expectations by 1.3%, and Pool reported flat revenue, in line with consensus estimates. Service International’s stock price was unchanged after the resultswhile Pool was up 2.6%.
Read our full analysis of Service International’s results here and Pool’s results here.
Investors in the specialized consumer services segment have had steady hands going into earnings, with share prices flat over the last month. Frontdoor is down 1.1% during the same time and is heading into earnings with an average analyst price target of $55.50 (compared to the current share price of $58.10).
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