Home warranty company Frontdoor (NASDAQ: FTDR) will be reporting earnings this Thursday before the bell. Here’s what to look for.
Frontdoor beat analysts’ revenue expectations last quarter, reporting revenues of $433 million, up 13.1% year on year. It was a satisfactory quarter for the company, with a beat of analysts’ EPS estimates but full-year revenue guidance slightly missing analysts’ expectations.
Is Frontdoor a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Frontdoor’s revenue to grow 3.9% year on year, slowing from the 12.7% increase it recorded in the same quarter last year.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Frontdoor rarely misses Wall Street’s revenue estimates.
Looking at Frontdoor’s peers in the consumer discretionary segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Pool delivered year-on-year revenue growth of 6.2%, beating analysts’ expectations by 3.8%, and Monarch reported revenues up 8.9%, topping estimates by 5.2%. Pool’s stock price was unchanged after the resultswhile Monarch was up 15.9%.
Read our full analysis of Pool’s results here and Monarch’s results here.
There has been positive sentiment among investors in the consumer discretionary segment, with share prices up 12.5% on average over the last month. Frontdoor is up 19.4% during the same time and is heading into earnings with an average analyst price target of $73.40 (compared to the current share price of $62.04).
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