Frontdoor beats Q2 earnings expectations, raises FY guidance
Overview
Frontdoor Q2 revenue rises 14% to $617 mln, beating analyst expectations
Adjusted EPS for Q2 beats estimates, rising to $1.63
Adjusted EBITDA increases 26% to $199 mln, exceeding analyst projections
Outlook
Frontdoor raises full-year revenue guidance to $2.055 bln-$2.075 bln
Company increases full-year gross profit margin forecast to 55%-56%
Frontdoor expects Q3 revenue of $605 mln-$615 mln
Company projects Q3 adjusted EBITDA of $180 mln-$190 mln
Result Drivers
PRICE AND VOLUME - Revenue growth driven by 2% price increase and 12% higher volume, mainly due to 2-10 acquisition
CHANNEL PERFORMANCE - Renewal and real estate channels contributed to revenue growth, aided by 2-10 acquisition
OPERATIONAL EXECUTION - Strong operational execution supported margin structure, per CFO Jessica Ross
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Revenue | Beat | $617 mln | $602.60 mln (6 Analysts) |
Q2 Adjusted EPS | Beat | $1.63 | $1.45 (5 Analysts) |
Q2 EPS |
| $1.48 |
|
Q2 Adjusted Net Income | Beat | $122 mln | $107.40 mln (5 Analysts) |
Q2 Net Income |
| $111 mln |
|
Q2 Adjusted EBITDA | Beat | $199 mln | $186.60 mln (5 Analysts) |
Q2 Gross Profit |
| $356 mln |
|
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", 2 "hold" and 1 "sell" or "strong sell"
The average consensus recommendation for the personal services peer group is "buy"
Wall Street's median 12-month price target for Frontdoor Inc is $56.00, about 4.4% below its August 4 closing price of $58.49
The stock recently traded at 16 times the next 12-month earnings vs. a P/E of 13 three months ago
Press Release: ID:nBw3kYlwXa
