Frontdoor, Inc. (NASDAQ: FTDR) reported Q4 EPS of $0.23, $0.17 better than the analyst estimate of $0.06. Revenue for the quarter came in at $279 million versus the consensus estimate of $278 million.

• Revenue increased nine percent to $279 million in the fourth-quarter 2018 and to $1.26 billion for full-year 2018
• Gross profit margin of 45 percent in the fourth-quarter 2018 declined from 47 percent in the prior year period; full-year 2018 gross profit margin of 45 percent declined from 49 percent in 2017
• Net income of $17 million in the fourth-quarter 2018 declined from $44 million in the prior year period; full-year 2018 net income of $125 million was down from $160 million in 2017; fourth-quarter and full-year 2018 net income reflects the impact of higher claims costs, investments in the business, Spin-off charges, and interest expense from the debt offering completed in August 2018
• Fourth-quarter 2018 Adjusted EBITDA of $47 million declined from $50 million in the prior year period; full-year 2018 Adjusted EBITDA of $238 million declined from $259 million in 2017
• Executed initiatives to strengthen the core business by implementing pricing actions, improving business processes, reducing costs and further bolstering the leadership team; expect to pilot on-demand service offering in late 2019

“In the fourth quarter, we continued to drive strong revenue growth, began to see the benefits from our process improvement initiatives, and strengthened our leadership team,” said Chief Executive Officer Rex Tibbens. “In 2019, we will be focused on improving all aspects of our business by executing our profit enhancement initiatives, improving the customer experience, and further developing our systems and platforms. These efforts will not only bolster our core home service plan business, but also build the foundation for our future on-demand offering.”

GUIDANCE:

Frontdoor, Inc. sees FY2019 revenue of $1.35-1.38 billion, versus the consensus of $1.36 billion.

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