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MEMPHIS, Tenn. -On Thursday, Frontdoor , Inc. (NASDAQ:FTDR) reported fourth-quarter earnings that beat analyst expectation.
The company’s shares fell -7.29% in premarket trading as first-quarter guidance came in below estimates.
The home warranty provider posted adjusted earnings per share of $0.27, significantly above the $0.06 analyst consensus. Revenue rose 5% YoY to $383 million, also topping expectations of $374.46 million.
However, Frontdoor’s outlook for the first quarter of 2025 appears to have disappointed investors. The company guided for Q1 revenue of $410-420 million and adjusted EBITDA of $70-80 million, which it noted was "similar to the prior-year period."
For the full year 2025, Frontdoor expects revenue growth of approximately 10% to $2.0-2.04 billion, above the $1.94 billion analyst consensus. The company projects adjusted EBITDA of $450-475 million for 2025.
"2024 was truly an exceptional year for Frontdoor as we delivered record financial results, our operations performed better than ever and we completed the acquisition of 2-10," said Chairman and CEO Bill Cobb.
The company noted it utilized $160 million to repurchase about 4 million shares in 2024. Frontdoor also completed its acquisition of 2-10 Home Buyers Warranty in December.
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