Frontdoor, Inc. (FTDR) Reports In-Line Q3 EPS

Frontdoor, Inc. (NASDAQ: FTDR) reported Q3 EPS of $0.59, in-line with the analyst estimate of $0.59. Revenue for the quarter came in at $440 million versus the consensus estimate of $434.23 million.

“We continue to execute several key strategic objectives that will accelerate our long-term growth trajectory,” said Chief Executive Officer Rex Tibbens. “We are seeing the benefits of our marketing investments, growing our emerging businesses and expanding dynamic pricing. While we are still in the early stages of improving the customer experience, our investments in technology, business processes and training have resulted in higher customer retention and strengthened our foundation for further operational improvements. Finally, I want to thank all of our associates, contractors and customers as we continue to manage through COVID-19. Our team is rallying around this challenge, and I am certain we are becoming a stronger organization as a result.”

“Our third quarter results reflect stronger than anticipated revenue growth, primarily as a result of improved real estate fundamentals,” said Chief Financial Officer Brian Turcotte. “However, COVID-19 continued to unfavorably impact our Adjusted EBITDA in the third quarter. We experienced increased service requests and industry-wide appliance availability challenges, which impacted claims costs, while opportunistically increasing marketing investments to drive sales growth. In response to the higher costs, we are taking aggressive actions to increase our gross profit margin, such as leveraging dynamic pricing and improving our processes. Looking to 2021, we expect revenue growth to accelerate and margins to benefit from the favorable actions we are taking today.”

GUIDANCE:

Frontdoor, Inc. sees Q4 2020 revenue of $315-325 million, versus the consensus of $317.82 million.

Frontdoor, Inc. sees FY2020 revenue of $1.46-1.47 billion, versus the consensus of $1.46 billion.

For earnings history and earnings-related data on Frontdoor, Inc. (FTDR) click here.

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