Frontdoor (FTDR) To Report Earnings Tomorrow: Here Is What To Expect

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

Frontdoor beat analysts' revenue expectations by 1.8% last quarter, reporting revenues of $366 million, up 8% year on year. It was a mixed quarter for the company, with an impressive beat of analysts' earnings estimates but revenue guidance for next quarter missing analysts' expectations.

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 2.6% year on year to $376.7 million, slowing from the 4.6% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.20 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 a history of exceeding Wall Street's expectations, beating revenue estimates every single time over the past two years by 1.7% 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's revenues decreased 5.3% year on year, meeting analysts' expectations, and Pool reported a revenue decline of 7.1%, in line with consensus estimates. ADT traded up 1% following the results while Pool was down 1.3%.

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

Inflation progressed towards the Fed's 2% goal at the end of 2023, leading to strong stock market performance. The start of 2024 has been a bumpier ride as the market switches between optimism and pessimism around rate cuts thanks to mixed inflation data, and while some of the specialized consumer services stocks have fared somewhat better, they have not been spared, with share prices down 5.9% on average over the last month. Frontdoor is down 5.8% during the same time and is heading into earnings with an average analyst price target of $39.5 (compared to the current share price of $29.98).

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