Frontdoor falls short in Q3, but maintains full-year outlook

Trending News 🌥️

FRONTDOOR ($NASDAQ:FTDR) Inc. is a membership-based home services company that offers homeowners convenient, hassle-free access to quality home service providers. The company operates in the United States and Canada through a network of local, independent contractors. In its third quarter results, FRONTDOOR missed GAAP EPS estimates by $0.08, while revenue of $484M beat by $8.39M. The company updated its full-year 2022 outlook, with revenue now expected to be in the range of $1.65 billion to $1.66 billion, slightly higher than the prior year at the mid-point.

Despite the miss in Q3, FRONTDOOR maintains its full-year outlook due to the strength of its core business and continued focus on operational efficiencies. The company is confident that it will deliver strong results for shareholders in the year ahead.

Earnings

FRONTDOOR falls short in Q3, but maintains full-year outlook. In the earning report of FY2022 Q2 ending June 30, FRONTDOOR earned 1649.0M USD in total revenue, earned 118.0M USD in net income. Compared to previous year, 2.9% increase in total revenue, 7.8% decrease in net income. FRONTDOOR’s total revenue reached from 1475.0M USD to 1649.0M USD in the last 3 years.

Looking into the future, the company maintains its full-year outlook and expects to see continued growth. Despite falling short in Q3, the company is confident in its ability to achieve its goals. FRONTDOOR’s strong performance over the last three years is a positive sign that the company is on the right track.

Share Price

Frontdoor, Inc. fell short of estimates in its third quarter results, but maintained its full-year outlook. Shares of the home services company soared 16.8% on Thursday after the release. Most of the news sentiment around FRONTDOOR has been negative, but the stock opened at $21.60 on Thursday and closed at $24.20, up from its previous closing price of $20.70.

The company attributed the miss to higher than expected costs, but said it is still on track to hit its full-year targets. Looking ahead, Frontdoor remains optimistic about its growth prospects and is confident it can continue to generate strong returns for shareholders.

VI Analysis

A company’s fundamentals reflect its long term potential. The VI app makes it easy to analyze a company’s fundamentals. Based on the VI Star Chart, FRONTDOOR is classified as a ‘rhino’. This means that the company has achieved moderate revenue or earnings growth. Investors interested in such a company may be attracted to its strong asset base and profitability.

However, the company’s dividend growth is weak. FRONTDOOR has a high health score of 8/10, indicating that it is capable of sustaining future operations in times of crisis.

VI Peers

Its competitors are E-Home Household Service Holdings Ltd, Buck Hill Falls Co, and Carriage Services Inc.

– E-Home Household Service Holdings Ltd ($NASDAQ:EJH)

E-Home Household Service Holdings Ltd is a provider of home healthcare services in China. The company offers a range of services, including nursing care, rehabilitation therapy, and health management. It also provides home-based services, such as home visits, home health education, and health assessment. The company operates in two segments: Home Healthcare Services and Health Management. It has a network of service outlets in Beijing, Shanghai, Guangzhou, and Shenzhen.

– Buck Hill Falls Co ($OTCPK:BUHF)

Carriage Services Inc is a publicly traded company that provides funeral and cemetery services. The company has a market capitalization of $353.16 million as of 2022 and a return on equity of 43.04%. Carriage Services Inc operates through two segments: Funeral and Cemetery Services. The Funeral segment provides funeral services, cremation services, and merchandise sales. The Cemetery segment provides cemetery property sales, interment services, and other related services.

Summary

FRONTDOOR is a diversified home services company that offers a range of services to homeowners, including home repairs, installations, and replacements. Investors interested in FRONTDOOR may consider buying shares of the company as it continues to expand its operations and services across the United States. The company has a strong brand and a diversified business model, which makes it a attractive investment proposition.