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MEMPHIS, Tenn. - Frontdoor, Inc. (NASDAQ: FTDR), the parent company of American Home Shield, has announced the continuation of its marketing campaign with Rachel Dratch as Warrantina for the second consecutive year. The company, which InvestingPro data shows has maintained strong profitability with earnings of $3.05 per share over the last twelve months, appears undervalued according to InvestingPro’s Fair Value model. The campaign, which highlights the benefits of home warranties, now includes a new feature allowing members to video chat with repair experts.
The addition of video chat aims to provide real-time assistance for home repair issues through the American Home Shield app. Since its launch on February 27, the service has reportedly enabled nearly 20% of users to resolve their problems directly over the phone or to receive guidance for DIY repairs, potentially saving time and money. This innovation comes as the company maintains healthy financials, with revenue growth of 3.54% and a solid gross profit margin of nearly 54%.
The campaign includes a new 30-second advertisement titled "Ancient Manual," which showcases the convenience of having access to AHS Experts for maintenance and repair guidance. The ad is part of a broader effort to emphasize the peace of mind provided by home warranties in protecting against unexpected covered breakdowns.
The ads, developed in collaboration with creative agency Fallon, were filmed in Los Angeles in February and aim to deepen the character of Warrantina, portrayed by Dratch. The campaign will also feature in Netflix’s WWE RAW broadcasts and during the March men’s and women’s basketball tournaments on DirecTV.
Frontdoor, a leader in home warranties and on-demand home services, operates through its brands American Home Shield and 2-10 Home Buyers Warranty. The company boasts over 50 years of experience, a national network of independent service contractors, and a commitment to service quality and product innovation. With a market capitalization of $2.84 billion and an attractive P/E ratio of 12.48, the company has caught the attention of investors. For deeper insights into Frontdoor’s financial health and growth prospects, InvestingPro subscribers can access comprehensive analysis and additional ProTips in the Pro Research Report.
This news is based on a press release statement from Frontdoor, Inc. The company’s forward-looking statements involve risks and uncertainties, and actual results may differ materially. While the company maintains a strong financial health score according to InvestingPro analysis, investors should note that three analysts have recently revised their earnings expectations downward for the upcoming period. For detailed information, including coverage details, limitations, and exclusions, readers are encouraged to review the plan agreement and Frontdoor’s filings with the Securities and Exchange Commission.
Coverage for video chat is available with select AHS plans and is subject to terms and conditions. The service operates from 6 a.m. to 9 p.m. Central Time, seven days a week, and may change.
In other recent news, Frontdoor, Inc. reported fourth-quarter earnings that exceeded analyst expectations. The company posted adjusted earnings per share of $0.27, surpassing the consensus estimate of $0.06. Revenue for the quarter increased by 5% year-over-year to $383 million, also beating expectations of $374.46 million. Despite these positive results, Frontdoor’s guidance for the first quarter of 2025 did not meet investor expectations, with projected revenue of $410-420 million and adjusted EBITDA of $70-80 million. For the full year 2025, the company anticipates revenue growth of approximately 10% to reach $2.0-2.04 billion, exceeding the analyst consensus of $1.94 billion. Frontdoor also projects an adjusted EBITDA of $450-475 million for the year. Additionally, the company completed the acquisition of 2-10 Home Buyers Warranty in December. Frontdoor utilized $160 million to repurchase about 4 million shares in 2024.
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