Frontdoor reports strong Q2 with record revenue and margins, remains bullish on growth

From Investing.com: 2024-08-04 20:07:26

Frontdoor, Inc. (FTDR) reported a strong second quarter for 2024, boasting record financial metrics such as a 4% revenue increase to $542 million and a gross margin rise to 56%. Adjusted EBITDA surged by 31% to $158 million, net income increased by 32%, and free cash flow doubled to $91 million. Share repurchases and a new $650 million share repurchase plan indicate confidence in the company’s valuation.

Frontdoor projects Q3 revenue of $530-545 million and adjusted EBITDA of $130-140 million. Full-year revenue forecast is $1.81-1.84 billion with adjusted EBITDA of $385-395 million. Despite macroeconomic challenges, the company remains bullish on its HVAC on-demand business and the acquisition of 2-10 Home Buyers Warranty, aiming for strong growth.

Frontdoor investors can find key insights from InvestingPro, showcasing the company’s fair valuation with a P/E ratio of 16.97 and a 5.6% revenue growth over the past year. The company’s strong returns and optimistic analyst forecasts highlight positive investor sentiment and growth potential, with InvestingPro providing further analysis, additional tips, and a comprehensive look at Frontdoor’s financial health and market position for interested investors.



Read more at Investing.com: Frontdoor boasts record margins and robust Q2 2024 results By Investing.com