Frontdoor Q4 Earnings Rise, Beats View; To Buy Back $100 Mln Of Shares; Stock Down In Pre-market

(RTTNews) - Frontdoor, Inc. (FTDR), a provider of home service plans, Wednesday reported higher earnings and revenue for the fourth quarter compared to the same period last year. Earnings and revenue results beat the Street view.

Further, the company provided its outlook for the first quarter and fiscal 2024.

Frontdoor is also targeting to buy back around $100 million of its common stock for the full year.

Quarterly earnings increased 4 percent to $9 million or $0.11 per share from $8 million or $0.10 per share in the last year.

Excluding items, earnings were $16 million or $0.20 per share compared with $11 million or $0.13 per share in the previous year.

On average, six analysts polled by Thomson Reuters expect earnings of $0.03 per share for the quarter. Analysts' estimates typically exclude special items.

Revenues rose 8 percent to $366 million from $339 million in the prior year, on 15 percent increase from price.

The Street view for revenue is $359.55 million.

Looking ahead to the next quarter, the company expects Adjusted EBITDA of $40 million to $50 million, lower than the prior-year period as a result of increased marketing investments. The company is also expecting revenue of $370 million to $380 million, reflecting upper-single-digit growth in the renewals channel.

Analysts estimate $383.7 million in revenues for the first quarter.

Looking forward to the full year, the company expects adjusted EBITDA of $350 million to $360 million and revenue to grow around 2 percent to 3 percent to $1.81 billion to $1.84 billion.

The Street view for revenue is $1.77 billion.

In pre-market activity, Frontdoor shares are trading at $30.10, down 8.87% on the Nasdaq.