Frontdoor (FTDR) Q4 Earnings: Taking a Look at Key Metrics Versus Estimates

Zacks02-27

Frontdoor (FTDR) reported $383 million in revenue for the quarter ended December 2024, representing a year-over-year increase of 4.6%. EPS of $0.27 for the same period compares to $0.20 a year ago.

The reported revenue compares to the Zacks Consensus Estimate of $368.3 million, representing a surprise of +3.99%. The company delivered an EPS surprise of +145.45%, with the consensus EPS estimate being $0.11.

While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.

Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.

Here is how Frontdoor performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

  • Customer retention rate: 79.9% versus 77.3% estimated by two analysts on average.
  • Number of home service plans/ Number of home warranties: 2.12 million compared to the 1.93 million average estimate based on two analysts.
  • Revenue by Customer Channel- Renewals: $296 million versus the three-analyst average estimate of $291.61 million. The reported number represents a year-over-year change of +3.9%.
  • Revenue by Customer Channel- Other: $30 million compared to the $23.99 million average estimate based on three analysts. The reported number represents a change of +66.7% year over year.
  • Revenue by Customer Channel- Direct-to-consumer (First-Year): $31 million compared to the $29.14 million average estimate based on three analysts. The reported number represents a change of -16.2% year over year.
  • Revenue by Customer Channel- Real estate (First-Year): $26 million versus $22.22 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a 0% change.
View all Key Company Metrics for Frontdoor here>>>

Shares of Frontdoor have returned -8.4% over the past month versus the Zacks S&P 500 composite's -2.2% change. The stock currently has a Zacks Rank #2 (Buy), indicating that it could outperform the broader market in the near term.

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This article originally published on Zacks Investment Research (zacks.com).

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