William Blair Predicts Increased Earnings for Frontdoor

Frontdoor, Inc. (NASDAQ:FTDR) – Equities research analysts at William Blair raised their FY2024 earnings per share estimates for Frontdoor in a research report issued on Thursday, January 16th. William Blair analyst J. Schmitt now anticipates that the company will earn $3.25 per share for the year, up from their prior forecast of $3.18. The consensus estimate for Frontdoor’s current full-year earnings is $3.15 per share. William Blair also issued estimates for Frontdoor’s Q2 2025 earnings at $1.32 EPS, Q3 2025 earnings at $1.48 EPS, Q4 2025 earnings at $0.09 EPS, FY2025 earnings at $3.33 EPS, Q1 2026 earnings at $0.47 EPS, Q2 2026 earnings at $1.46 EPS, Q3 2026 earnings at $1.59 EPS and Q4 2026 earnings at $0.08 EPS.

Several other brokerages have also recently issued reports on FTDR. The Goldman Sachs Group raised their target price on Frontdoor from $41.00 to $46.00 and gave the stock a “sell” rating in a research report on Tuesday, November 5th. Truist Financial boosted their target price on shares of Frontdoor from $56.00 to $58.00 and gave the company a “buy” rating in a research report on Tuesday, November 5th. One equities research analyst has rated the stock with a sell rating, one has issued a hold rating and three have given a buy rating to the company. Based on data from MarketBeat, Frontdoor presently has an average rating of “Hold” and a consensus price target of $49.50.

Frontdoor Stock Performance

FTDR stock opened at $58.91 on Monday. The company has a debt-to-equity ratio of 2.16, a current ratio of 1.42 and a quick ratio of 1.42. Frontdoor has a 1 year low of $29.41 and a 1 year high of $60.42. The company has a market cap of $4.47 billion, a P/E ratio of 19.51 and a beta of 1.08. The stock’s fifty day moving average price is $56.87 and its 200-day moving average price is $50.13.

Frontdoor (NASDAQ:FTDR) last issued its quarterly earnings data on Monday, November 4th. The company reported $1.38 earnings per share for the quarter, beating analysts’ consensus estimates of $1.05 by $0.33. Frontdoor had a net margin of 12.87% and a return on equity of 132.99%. The company had revenue of $540.00 million for the quarter, compared to the consensus estimate of $541.88 million. During the same quarter in the prior year, the firm earned $0.94 earnings per share. The firm’s revenue for the quarter was up 3.1% compared to the same quarter last year.

Hedge Funds Weigh In On Frontdoor

Institutional investors have recently added to or reduced their stakes in the company. American Century Companies Inc. increased its stake in Frontdoor by 10.1% during the second quarter. American Century Companies Inc. now owns 142,627 shares of the company’s stock worth $4,819,000 after acquiring an additional 13,093 shares during the last quarter. Dimensional Fund Advisors LP increased its position in shares of Frontdoor by 5.3% during the 2nd quarter. Dimensional Fund Advisors LP now owns 1,787,539 shares of the company’s stock valued at $60,402,000 after purchasing an additional 89,301 shares during the last quarter. Intech Investment Management LLC bought a new stake in Frontdoor in the second quarter worth $285,000. Canada Pension Plan Investment Board bought a new stake in Frontdoor in the second quarter worth $1,970,000. Finally, Sei Investments Co. boosted its stake in Frontdoor by 145.6% during the second quarter. Sei Investments Co. now owns 22,054 shares of the company’s stock worth $745,000 after buying an additional 13,075 shares during the period.

Insider Activity

In related news, COO Evan Iverson sold 16,000 shares of the business’s stock in a transaction that occurred on Wednesday, December 11th. The stock was sold at an average price of $58.84, for a total value of $941,440.00. Following the transaction, the chief operating officer now directly owns 4,955 shares of the company’s stock, valued at approximately $291,552.20. The trade was a 76.35 % decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, SVP Kathryn M. Collins sold 25,784 shares of the stock in a transaction that occurred on Tuesday, December 10th. The shares were sold at an average price of $58.06, for a total transaction of $1,497,019.04. Following the sale, the senior vice president now directly owns 9,429 shares of the company’s stock, valued at approximately $547,447.74. This trade represents a 73.22 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders own 0.89% of the company’s stock.

About Frontdoor

Frontdoor, Inc provides home warranties in the United States in the United States. Its customizable home warranties help customers protect and maintain their homes from costly and unplanned breakdowns of essential home systems and appliances. The company’s home warranty customers subscribe to an annual service plan agreement that covers the repair or replacement of principal components of approximately 20 home systems and appliances, including electrical, plumbing, water heaters, refrigerators, dishwashers, and ranges/ovens/cooktops, as well as electronics, pools, and spas and pumps; and heating, ventilation, and air conditioning systems.