NASDAQ$FTDR

Frontdoor Inc. · Q3 2020 earnings

Q3 2020 earnings · · Investor relations

Briefing

Frontdoor's Q3 2020 earnings were released, revealing an 8% increase in revenue to $440 million and a net income of $49 million.

Frontdoor reported an 8% increase in revenue, reaching $440 million. The company's net income was $49 million, with diluted earnings per share at $0.57. Customer retention improved to 76%, and home service plan growth accelerated to 4%.

  • Revenue increased by 8% to $440 million.
  • Net income reached $49 million.
  • Customer retention improved to 76%.
  • Home service plan growth accelerated to 4%.

Headline financials

Total Revenue

$440M

Previous: $407M+8.1%
EPS (adj)

$0.59

Previous: $0.73-19.2%
Capital Expenditures

-$26M

Previous: -$15M-73.3%
Free Cash Flow

$23M

Previous: $46M-50.0%
Net Income

$49M

Previous: $61M-19.7%
Operating Income

$81M

Previous: $96M-15.6%
Gross Profit

$215M

Previous: $206M+4.4%
Cash & Equivalents

$551M

Previous: $425M+29.6%
Total Assets

$1.41B

Previous: $1.22B+15.6%
Stock-Based Comp

$5M

Previous: $3M+66.7%

Revenue & EPS history

Frontdoor · Revenue · Quarterly

$440M

Q3 2020+8.1%vs Q3 2019
Beat estimate in 9 of 12 quarters(75%)
ActualEstimate

Revenue by segment

Frontdoor · $307M total across 2 segments · Q3 2020

  • Renewals
    $303M+9.0%
  • Non-warranty and other
    $4M

Forward guidance

Frontdoor provided its outlook for Q4 2020, expecting revenue between $315 million and $325 million and Adjusted EBITDA between $28 million and $32 million. For the full year 2020, revenue is projected to be between $1,460 million and $1,470 million, with an Adjusted EBITDA of approximately $266 million to $270 million.

Headwinds

  • Revenue of $315 million to $325 million.
  • Adjusted EBITDA of $28 million to $32 million, which reflects a continuation of higher service request demand
  • additional investments in customer service.
  • Revenue of $1,460 million to $1,470 million.
  • Adjusted EBITDA of approximately $266 million to $270 million.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q3 2020

Historical avgQ3 2020

+1.5%

Avg return

Earnings day

+1.6%

Avg return

5 days after

-0.1%

Avg return

30 days after

59%

20 / 34 earnings

Positive

+25.0%

Q1 2025

Best reaction

-34.2%

Q4 2017

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+13.3%+8.8%+2.3%
Q4 2025+16.9%+22.8%-4.7%
Q3 2025-15.8%-24.1%-19.3%
Q2 2025-4.0%-6.2%+8.2%
Q1 2025+25.0%+30.0%+33.8%
Q4 2024-19.2%-26.4%-33.5%
Q3 2024+10.7%+17.9%+19.9%
Q1 2024+12.6%+16.8%+15.0%
Q4 2023-5.1%-6.8%-1.4%
Q3 2023+13.4%+21.2%+19.5%
Q2 2023+5.6%+4.6%-4.8%
Q1 2023+11.7%+15.1%+19.5%
Q4 2022+4.3%+1.6%-1.3%
Q3 2022+12.9%+12.2%+12.8%
Q2 2022-0.9%-5.4%-12.5%
Q1 2022-12.9%-14.3%-21.4%
Q4 2021-6.6%-8.1%-11.9%
Q3 2021-11.8%-6.7%-16.5%
Q2 2021-13.8%-14.7%-14.2%
Q1 2021+2.0%+1.6%+1.0%
Q4 2020-1.3%-3.9%-0.2%
Q3 2020+4.0%+9.0%+9.1%
Q2 2020+7.0%+3.8%+0.1%
Q1 2020+5.5%+6.2%+12.5%
Q4 2019-2.1%+0.9%-20.1%
Q3 2019-5.3%-4.7%-3.9%
Q2 2019+16.5%+14.9%+17.5%
Q1 2018+0.2%-0.7%+4.0%
Q1 2019+11.9%+12.0%+17.6%
Q4 2016+12.7%+13.0%+8.9%
Q2 2018+12.7%+13.0%+8.9%
Q4 2018+13.6%+25.2%+22.2%
Q4 2017-34.2%-36.6%-35.4%
Q3 2018-29.0%-36.4%-36.0%

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