Overview

* Frontdoor ( FTDR ) Q2 revenue rises 14% to $617 mln, beating analyst expectations

* Adjusted EPS for Q2 beats estimates, rising to $1.63

* Adjusted EBITDA increases 26% to $199 mln, exceeding analyst projections

Outlook

* Frontdoor ( FTDR ) raises full-year revenue guidance to $2.055 bln-$2.075 bln

* Company increases full-year gross profit margin forecast to 55%-56%

* Frontdoor ( FTDR ) expects Q3 revenue of $605 mln-$615 mln

* Company projects Q3 adjusted EBITDA of $180 mln-$190 mln

Result Drivers

* PRICE AND VOLUME - Revenue growth driven by 2% price increase and 12% higher volume, mainly due to 2-10 acquisition

* CHANNEL PERFORMANCE - Renewal and real estate channels contributed to revenue growth, aided by 2-10 acquisition

* OPERATIONAL EXECUTION - Strong operational execution supported margin structure, per CFO Jessica Ross

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 Beat $617 mln $602.60

Revenue mln (6

Analysts

)

Q2 Beat $1.63 $1.45 (5

Adjusted Analysts

EPS )

Q2 EPS $1.48

Q2 Beat $122 mln $107.40

Adjusted mln (5

Net Analysts

Income )

Q2 Net $111 mln

Income

Q2 Beat $199 mln $186.60

Adjusted mln (5

EBITDA Analysts

)

Q2 Gross $356 mln

Profit

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", 2 "hold" and 1 "sell" or "strong sell"

* The average consensus recommendation for the personal services peer group is "buy"

* Wall Street's median 12-month price target for Frontdoor Inc ( FTDR ) is $56.00, about 4.4% below its August 4 closing price of $58.49

* The stock recently traded at 16 times the next 12-month earnings vs. a P/E of 13 three months ago

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)