Financial Performance - For the year ended December 31, 2024, Frontdoor generated revenue of $1,843 million, net income of $235 million, and Adjusted EBITDA of $443 million[34]. - The company generated 78 percent of its home warranty revenue through existing customer renewals, compared to 77 percent in 2023 and 72 percent in 2022[63]. - The renewal revenue for home warranties was $1,437 million, $1,367 million, and $1,203 million for the years ended December 31, 2024, 2023, and 2022, respectively[64]. - The company’s revenue is primarily derived from home warranty contracts, which are typically one year in duration, and recognized over time based on service costs incurred[215]. - The company experienced seasonal fluctuations, with approximately 21% of revenue recognized in Q1, 29% in Q2, 29% in Q3, and 21% in Q4 of 2024[206]. - The company’s labor, parts, and equipment costs are affected by inflation, impacting overall profitability[209]. - Operating expenses are influenced by inflationary pressures, including salaries, contractor costs, and regulatory compliance costs[216]. - Gross profit is calculated by deducting the cost of services rendered from revenue, with gross profit margin expressed as a percentage of revenue[217]. - Adjusted EBITDA is defined as net income before various expenses, with Adjusted EBITDA margin calculated as Adjusted EBITDA divided by revenue[219]. - Free Cash Flow represents net cash provided from operating activities less property additions, serving as a key cash flow measure[220]. Customer Base and Market Position - As of December 31, 2024, Frontdoor had approximately 2.1 million active home warranties across all brands in the United States[29]. - Approximately 78% of Frontdoor's revenue in 2024 was generated through existing customer renewals, with 84% of home warranty customers on a monthly auto-pay program[31][43]. - Frontdoor's home warranty category currently represents approximately $4 billion in annual revenue, with only about 6% household penetration in the U.S.[34]. - The company aims to grow its home warranty customer base by targeting homeowners more effectively and optimizing strategies with real estate brokers and contractors[50]. - In 2024, approximately 1.1 million U.S. homes were sold with a home warranty, with revenue from the real estate channel amounting to $125 million, $141 million, and $184 million for the years ended December 31, 2024, 2023, and 2022, respectively[60]. - The direct-to-consumer channel generated revenue of $166 million, $194 million, and $219 million for the years ended December 31, 2024, 2023, and 2022, respectively, with a renewal rate of 72 percent[62]. Acquisitions and Strategic Initiatives - The acquisition of 2-10 HBW in December 2024 expanded Frontdoor's builder partnerships to approximately 19,000, enhancing its position in the new home structural warranty market[28]. - The company completed the acquisition of 2-10 HBW on December 19, 2024, for an aggregate cash consideration of $585 million, enhancing its customer base and revenue opportunities[202]. - The company anticipates strategic acquisition opportunities in the fragmented home services industry, having recently acquired 2-10 HBW to expand its customer base and revenue[58]. - The company faces risks related to the integration of 2-10 HBW, which may include unforeseen difficulties and increased costs[149]. Technology and Innovation - The company plans to leverage its technology platform, including video chat and augmented reality, to enhance customer service and reduce the need for in-home visits[41][42]. - The company continues to invest in digital innovation, with approximately 46 percent of home warranty direct-to-consumer sales made online in 2024[73]. - The company has implemented a cybersecurity risk management strategy to protect its systems and data from potential threats, integrating it into its overall enterprise risk management program[176]. Regulatory and Compliance Risks - The company faces risks related to regulatory compliance, which could adversely affect its operations and financial position[86]. - The California Consumer Privacy Act (CCPA) and the California Privacy Rights Act (CPRA) impose new compliance requirements that may increase operational costs[126]. - The company is subject to various federal, state, and local laws that could increase legal and regulatory expenses, impacting financial performance[128]. - Evolving corporate governance regulations may increase administrative expenses and require significant management resources to ensure compliance[140]. Economic and Market Conditions - The company’s financial performance is influenced by macroeconomic conditions, including inflation and interest rates, which have negatively impacted home sales in recent years[93]. - The Federal Reserve's interest rate decisions have led to buyer apprehension, affecting home sales and consequently the company’s business[94]. - Consumer demand for home warranty services is influenced by macroeconomic conditions, including interest rates and inflation, as well as marketing efforts[104]. - Increased operating costs due to inflation and global supply chain challenges have led to a rise in contract claims costs, adversely impacting financial performance[111]. Workforce and Employee Relations - As of December 31, 2024, the company’s workforce is composed of 63% female, 37% male, and 42% racially/ethnically diverse employees[80]. - The company has engaged in a review and update of employee benefits and vacation programs in 2024 to enhance healthcare coverage[81]. - The company faces challenges in attracting and retaining qualified key employees, which could impact operational success and financial performance[114]. Debt and Financial Obligations - As of December 31, 2024, the company had $1,199 million in total consolidated long-term indebtedness, which includes borrowings for the 2-10 HBW acquisition[160]. - The company does not intend to pay cash dividends in the foreseeable future, focusing instead on business development and debt repayment[155]. - The company has significant variable rate indebtedness, with a one percentage point increase in interest rates resulting in approximately $6 million increase in annual interest expense on Term Loan Facilities and $3 million on the Revolving Credit Facility as of December 31, 2024[163]. - The company’s ability to generate sufficient cash flows from operations to service its debt obligations is uncertain, which may force it to delay capital expenditures or restructure its debt[169].

Group 1 - The upcoming report from Frontdoor (FTDR) is expected to show quarterly earnings of $0.08 per share, a decline of 60% year-over-year, with revenues forecasted at $368.3 million, reflecting a 0.6% increase year-over-year [1] - Over the past 30 days, the consensus EPS estimate for the quarter has been adjusted upward by 0.8%, indicating a reassessment by analysts [1][2] - The 'Revenue by Customer Channel- Renewals' is projected to reach $291.61 million, showing a year-over-year change of +2.3% [4] Group 2 - The 'Revenue by Customer Channel- Other' is estimated at $23.99 million, suggesting a year-over-year increase of +33.3% [4] - The 'Revenue by Customer Channel- Direct-to-consumer (First-Year)' is expected to be $29.14 million, indicating a decline of -21.2% from the prior-year quarter [5] - The 'Customer retention rate' is projected to be 77.3%, an increase from 76.2% reported in the same quarter of the previous year [6] Group 3 - Shares of Frontdoor have shown a return of -2.3% over the past month, compared to a -0.5% change in the Zacks S&P 500 composite [6] - Frontdoor holds a Zacks Rank 2 (Buy), suggesting expectations to outperform the overall market in the near future [6]

Company Overview - Frontdoor (FTDR) is expected to report a year-over-year decline in earnings of 60%, with projected earnings of $0.08 per share for the quarter ended December 2024 [3][12] - Revenue is anticipated to be $368.3 million, reflecting a slight increase of 0.6% from the previous year [3] Earnings Estimates and Trends - The consensus EPS estimate has been revised 0.79% higher in the last 30 days, indicating a reassessment by analysts [4] - The Most Accurate Estimate for Frontdoor is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -166.67%, suggesting a bearish outlook from analysts [10][11] Historical Performance - Frontdoor has a history of beating consensus EPS estimates, having done so in the last four quarters, with a notable surprise of +33.98% in the last reported quarter [12][13] Industry Comparison - Owens Corning (OC), another player in the Zacks Building Products - Miscellaneous industry, is expected to report earnings of $2.87 per share, indicating a year-over-year decline of 10.6%, with revenues projected at $2.78 billion, up 20.5% from the previous year [17] - Owens Corning's consensus EPS estimate has been revised 1.9% higher in the last 30 days, but it also has a negative Earnings ESP of -0.44%, making it difficult to predict an earnings beat [18]

Company Performance - Frontdoor (FTDR) has gained approximately 8.8% year-to-date, outperforming the average gain of 1.4% in the Construction group [4] - The Zacks Consensus Estimate for Frontdoor's full-year earnings has increased by 2.7% over the past quarter, indicating improved analyst sentiment [4] - Frontdoor holds a Zacks Rank of 1 (Strong Buy), suggesting it is poised to outperform the broader market in the next one to three months [3] Industry Comparison - Frontdoor is part of the Building Products - Miscellaneous industry, which has seen an average gain of 7.3% this year, indicating that FTDR is performing better than its industry peers [6] - In contrast, M-tron Industries, Inc. (MPTI), another Construction stock, has increased by 3.5% year-to-date, with a Zacks Rank of 2 (Buy) [5] - The Engineering - R and D Services industry, to which M-tron belongs, has declined by 10.4% year-to-date, highlighting the relative strength of Frontdoor's performance [7]

Technical Analysis - Frontdoor (FTDR) has reached a key level of support and recently crossed above the 20-day moving average, indicating a short-term bullish trend [1] - The 20-day simple moving average (SMA) is favored by traders as it reflects a shorter price history and helps smooth out fluctuations, providing more trend reversal signals compared to longer-term averages [2] Earnings Estimates - Positive earnings estimate revisions for FTDR strengthen the bullish outlook, with no earnings estimates lowered in the past two months and one estimate raised for the current fiscal year, leading to an increase in the consensus estimate [3] Performance Metrics - Over the past four weeks, FTDR has gained 8.5%, and it currently holds a Zacks Rank 1 (Strong Buy), suggesting potential for further price increases [4]

Group 1 - Frontdoor (FTDR) is currently outperforming its sector with a year-to-date return of 14.1%, compared to the Construction sector's average gain of 14% [4] - The Zacks Consensus Estimate for FTDR's full-year earnings has increased by 9.6% over the past three months, indicating improved analyst sentiment [4] - Frontdoor holds a Zacks Rank of 1 (Strong Buy), suggesting it is poised for strong performance in the near term [3] Group 2 - Frontdoor is part of the Building Products - Miscellaneous industry, which has seen a year-to-date gain of approximately 16.7%, indicating that FTDR is slightly underperforming its industry [6] - M-tron Industries, Inc. (MPTI) is another notable stock in the Construction sector, with a year-to-date return of 18.8% and a Zacks Rank of 2 (Buy) [5] - The Engineering - R and D Services industry, where M-tron operates, has only gained 2.8% this year, highlighting MPTI's strong performance relative to its industry [7]

Momentum investing revolves around the idea of following a stock's recent trend in either direction. In the 'long' context, investors will be essentially be "buying high, but hoping to sell even higher." With this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving that way. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.Even though momentum is a popular stock char ...

Frontdoor, Inc. (FTDR) has completed the acquisition of 2-10 Home Buyers Warranty (“2-10 HBW”). The company received all regulatory approvals and satisfied the closing conditions required for the deal.The all-cash transaction was valued at $585 million. The final purchase price is subject to adjustments based on factors such as cash, debt, transaction expenses, working capital and regulatory capital at closing.Shares of FTDR lost 0.6% during the trading session and 1.9% in the after-hour trading session yes ...

Frontdoor, Inc. (FTDR) has drawn investor attention, with its stock trading close to a 52-week high. Over the past five trading sessions, the stock has hovered around $59 per share, closing at $58.93 on Friday — just below its 52-week peak of $60.42 reached on Nov. 25.The leading provider of home warranties in the United States has been making notable strides in the market. FTDR shares have gained 21.8% in the past three months, significantly outperforming the Zacks Building Products - Miscellaneous industr ...

NEW YORK, Nov. 11, 2024 /PRNewswire/ --Purcell & Lefkowitz LLP announces that it is investigating Frontdoor, Inc. (NASDAQ: FTDR) on behalf of the company's shareholders. The investigation seeks to determine whether Frontdoor's directors breached their fiduciary duties in connection with recent corporate actions.If you are a shareholder of Frontdoor, Inc. and are interested in obtaining additional information regarding your rights and options, free of charge, please visit us at: https://pjlfirm.com/frontdoor ...