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Investing.com -- Frontdoor , Inc. (NASDAQ:FTDR), the leading provider of home warranties in the U.S., saw its shares soar 12.6% after reporting first-quarter earnings that exceeded analyst expectations and raising its full-year guidance.
The company reported adjusted earnings per share of $0.64 for the first quarter of 2025, surpassing the analyst estimate of $0.44. Revenue for the quarter came in at $426 million, beating the consensus estimate of $412.16 million and representing a 13% increase YoY.
Frontdoor’s strong performance was driven by a 3% increase in pricing and a 10% rise in volume, primarily due to the 2-10 acquisition. The company’s gross profit margin expanded by 380 basis points to a first-quarter record of 55%.
"We are off to a great start in 2025 and are pleased to increase our full-year outlook across the board," said Chairman and CEO Bill Cobb. "Our first-quarter results show that we are advancing our three strategic priorities by improving home warranty member count, scaling non-warranty services and integrating the 2-10 acquisition."
Looking ahead, Frontdoor raised its full-year 2025 revenue guidance to $2.03-2.05 billion, up from the previous consensus of $2.02 billion. The company also increased its adjusted EBITDA outlook to $500-520 million.
Frontdoor’s direct-to-consumer ending member count grew 15% to 310,000 compared to the prior year period, including the addition of the 2-10 acquisition and 4% organic growth.
The company has repurchased $105 million worth of shares year-to-date through April 2025 and increased its target for 2025 share repurchases to at least $200 million.
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