Frontdoor (FTDR) Q3 Earnings: Taking a Look at Key Metrics Versus Estimates

Zacks
2024-11-04

For the quarter ended September 2024, Frontdoor (FTDR) reported revenue of $540 million, up 3.1% over the same period last year. EPS came in at $1.38, compared to $0.94 in the year-ago quarter.

The reported revenue compares to the Zacks Consensus Estimate of $540.52 million, representing a surprise of -0.10%. The company delivered an EPS surprise of +33.98%, with the consensus EPS estimate being $1.03.

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.

As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.

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: 77.7% versus 76.2% estimated by two analysts on average.
  • Number of home service plans/ Number of home warranties: 1.95 million compared to the 1.95 million average estimate based on two analysts.
  • Revenue by Customer Channel- Renewals: $422 million compared to the $424.51 million average estimate based on three analysts. The reported number represents a change of +3.9% year over year.
  • Revenue by Customer Channel- Other: $34 million versus the three-analyst average estimate of $32.80 million. The reported number represents a year-over-year change of +41.7%.
  • Revenue by Customer Channel- Direct-to-consumer (First-Year): $49 million compared to the $47.60 million average estimate based on three analysts. The reported number represents a change of -9.3% year over year.
  • Revenue by Customer Channel- Real estate (First-Year): $36 million compared to the $34.08 million average estimate based on three analysts. The reported number represents a change of -10% year over year.
View all Key Company Metrics for Frontdoor here>>>

Shares of Frontdoor have returned +3.6% over the past month versus the Zacks S&P 500 composite's +0.4% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.

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