Home warranty company Frontdoor (NASDAQ:FTDR) will be announcing earnings results this Thursday morning. Here’s what investors should know.
Frontdoor met analysts’ revenue expectations last quarter, reporting revenues of $645 million, up 4.5% year on year. It was a strong quarter for the company, with a beat of analysts’ EPS estimates and full-year EBITDA guidance topping analysts’ expectations.
Is Frontdoor a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Frontdoor’s revenue to grow 4.8% year on year, slowing from the 14.4% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Frontdoor rarely misses Wall Street’s revenue estimates.
Looking at Frontdoor’s peers in the consumer discretionary - specialized consumer services segment, some have already reported their Q3 results, giving us a hint as to what we can expect. ADT delivered year-on-year revenue growth of 3.9%, beating analysts’ expectations by 2%, and Pool reported revenues up 3.7%, topping estimates by 2%. Pool traded up 15.4% following the results.
Read our full analysis of ADT’s results here and Pool’s results here.
There has been positive sentiment among investors in the consumer discretionary - specialized consumer services segment, with share prices up 4.7% on average over the last month. Frontdoor is up 14.3% during the same time and is heading into earnings with an average analyst price target of $95.40 (compared to the current share price of $88.69).
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