Frontdoor, Inc., a home service plan provider, reported an increase in earnings and revenue for the fourth quarter compared to the same time last year, surpassing expectations. The company also offered its forecast for the first quarter and fiscal year 2024.
Frontdoor plans to repurchase approximately $100 million of its common stock over the next year. The company's quarterly earnings experienced a 4% increase, rising from $8 million or $0.10 per share last year to $9 million or $0.11 per share.
When excluding certain items, earnings reached $16 million or $0.20 per share, compared to the previous year's $11 million or $0.13 per share. On average, six analysts polled by Thomson Reuters expected earnings of $0.03 per share for the quarter, a prediction typically excluding special items.
Revenues also increased by 8% to $366 million, up from $339 million the previous year, aided by a 15% increase in price. This surpassed predictions, which estimated revenue at $359.55 million.
For the upcoming quarter, Frontdoor expects to see an adjusted EBITDA of $40 million to $50 million, predicting lower than the previous year due to increased marketing investments. Additionally, the company projects revenues of $370 million to $380 million, tied to upper-single-digit growth in the renewals channel. These expectations are slightly lower than analysts' estimated revenue of $383.7 million for the first quarter.
In looking at the year ahead, Frontdoor projects an adjusted EBITDA of $350 million to $360 million, with revenue growth of around 2% to 3%, amounting to between $1.81 billion and $1.84 billion. This forecast exceeds Street's revenue prediction of $1.77 billion.
In pre-market activity, Frontdoor shares are trading on the Nasdaq at $30.10, down 8.87%.
