Frontdoor (NASDAQ:FTDR) Posts Quarterly Earnings Results, Beats Estimates By $0.04 EPS

Frontdoor (NASDAQ:FTDR) posted its quarterly earnings results on Thursday. The company reported $1.81 EPS for the quarter, beating analysts’ consensus estimates of $1.77 by $0.04, FiscalAI reports. Frontdoor had a net margin of 12.72% and a return on equity of 120.90%. The company had revenue of $655.00 million during the quarter, compared to analyst estimates of $647.73 million. During the same period in the prior year, the business posted $1.58 EPS. The firm’s revenue was up 6.0% compared to the same quarter last year.

Here are the key takeaways from Frontdoor’s conference call:

• Third-quarter revenue rose 6% to $655 million and adjusted EBITDA increased 5% to $205 million, despite weather-related claims costs that reduced gross margin by 200 basis points. Adjusted EPS climbed 15% to $1.81, and adjusted EBITDA exceeded the midpoint of the company’s outlook.
• Total ending members grew 1%, with renewals returning to growth and retention improving 30 basis points year over year to 79.7%. Direct-to-consumer members grew 4%, their eighth consecutive quarter of year-over-year growth.
• Non-warranty revenue increased 32%, led by HVAC upgrades; Frontdoor now expects about $175 million in HVAC upgrade revenue for 2026. The company said only about 3% of its members have purchased a system through the program and plans to expand into appliances.
• Frontdoor expects a frozen housing market to weigh on its real estate channel and lowered its outlook for that channel’s ending members to be flat by year-end 2026. The company still expects approximately 1% total member growth, supported by renewals and direct-to-consumer.
• The company raised its full-year revenue and adjusted EBITDA outlook at the midpoint and announced a new three-year, $1 billion share repurchase authorization. It had repurchased approximately 5% of shares outstanding through September.

Frontdoor Trading Up 1.2%

Shares of Frontdoor stock traded up $1.11 during midday trading on Friday, reaching $97.09. 1,008,622 shares of the company’s stock traded hands, compared to its average volume of 637,524. The stock has a 50 day moving average of $80.90 and a 200-day moving average of $70.15. Frontdoor has a 12 month low of $48.47 and a 12 month high of $103.07. The company has a market cap of $6.69 billion, a PE ratio of 24.27 and a beta of 1.60. The company has a debt-to-equity ratio of 3.98, a quick ratio of 1.59 and a current ratio of 1.59.

Key Headlines Impacting Frontdoor

Here are the key news stories impacting Frontdoor this week:

• Positive Sentiment: Truist Financial raised its price target on FTDR from $105 to $115 and reiterated a “buy” rating. The new target implies about 18% upside from the cited share price. Truist Financial recommendations
• Positive Sentiment: Third-quarter results exceeded expectations: Frontdoor reported EPS of $1.81 versus the $1.77 consensus and revenue of $655 million versus an estimated $647.7 million. Revenue rose 6% year over year, while EPS increased from $1.58 a year earlier. Frontdoor Q3 earnings and revenues beat estimates
• Positive Sentiment: Fourth-quarter revenue guidance of $453 million to $463 million has a midpoint above analysts’ $455.1 million estimate, suggesting a modest near-term outlook beat. Frontdoor Q4 revenue outlook
• Positive Sentiment: A report highlighted a new $1 billion buyback, which could support shareholder returns and demand for the stock. Frontdoor Q3 2026: Heat Wave, Beat, and a New $1B Buyback
• Neutral Sentiment: Full-year 2026 revenue guidance of $2.2 billion is in line with consensus, so it offers little change to current expectations. Frontdoor Q3 2026 earnings call transcript

Analyst Ratings Changes

A number of equities research analysts have issued reports on the stock. The Goldman Sachs Group cut their price target on shares of Frontdoor from $91.00 to $81.00 and set a “neutral” rating on the stock in a report on Monday, October 12th. Wolfe Research raised shares of Frontdoor to an “outperform” rating in a research note on Monday, August 24th. Truist Financial increased their target price on shares of Frontdoor from $105.00 to $115.00 and gave the stock a “buy” rating in a report on Friday. Oppenheimer raised their target price on Frontdoor from $70.00 to $100.00 and gave the stock an “outperform” rating in a research note on Friday, August 7th. Finally, Weiss Ratings raised Frontdoor from a “hold (c+)” rating to a “buy (b)” rating in a research note on Wednesday, October 21st. Five investment analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company’s stock. According to MarketBeat.com, the company currently has an average rating of “Moderate Buy” and an average target price of $97.40.

About Frontdoor

Frontdoor, Inc (NASDAQ: FTDR) is a provider of home warranties and related home repair services. The company helps homeowners manage the cost and complexity of maintaining household systems and appliances, including heating and cooling equipment, plumbing, electrical systems, water heaters and major kitchen appliances.

Frontdoor operates primarily through its American Home Shield brand, which offers home service plans and access to a network of professional contractors. The company also provides digital tools and services designed to help homeowners diagnose household problems, request service and connect with qualified professionals.