Acquisition and Financial Overview - The acquisition of 2-10 Home Buyers Warranty (2-10 HBW) was valued at $585 million, with the final purchase price subject to adjustments based on various financial factors [1][11] - FTDR announced a successful pricing of its $1.47 billion credit facility, which includes a $418 million Term Loan A, an $800 million Term Loan B, and a $250 million revolving credit line [3][10] Market Performance - FTDR's shares have increased by 56.1% over the past six months, significantly outperforming the Zacks Building Products - Miscellaneous industry and the S&P 500, which grew by 6.9% and 7.7%, respectively [4] - Despite the positive performance, FTDR's shares experienced a slight decline of 0.6% during the trading session and 1.9% in after-hours trading [8] Strategic Positioning - The acquisition of 2-10 HBW enhances FTDR's customer base, revenue, and earnings, aligning with its growth strategy [2][9] - FTDR is well-positioned for growth in the home warranty sector, supported by strong customer retention, expanded brand awareness, and ongoing acquisition efforts [5] Earnings Estimates and Analyst Confidence - The Zacks Consensus Estimate for FTDR's 2025 earnings per share (EPS) has increased by 6.5% in the past 60 days, indicating growing analyst confidence in the stock [18][19]

Core Viewpoint - Frontdoor, Inc. (FTDR) is experiencing significant investor interest, with its stock nearing a 52-week high and demonstrating strong performance compared to industry peers and broader market indices [1][2][3]. Stock Performance - FTDR shares have increased by 21.8% over the past three months, outperforming the Zacks Building Products - Miscellaneous industry's 3.3% rise and the S&P 500's growth of 8% [2]. - The stock is currently trading around $59 per share, just below its 52-week peak of $60.42 [1]. Market Position and Strategy - Frontdoor is the leading provider of home warranties in the U.S. and is focused on expanding brand awareness and direct-to-consumer efforts [2][5]. - The company's marketing campaign has significantly increased brand awareness for American Home Shield (AHS) from 39% in 2022 to over 54% by the end of the third quarter [6]. Customer Engagement and Retention - The direct-to-consumer (DTC) customer count has grown, with retention rates improving by 150 basis points to a record high of 77.7% in the third quarter [9]. - The company is enhancing customer engagement through initiatives like the new AHS app launched in November [6]. Financial Position - FTDR's net cash provided by operations was $212 million in the first nine months of 2024, up from $139 million a year ago [14]. - The company has completed a $400 million share repurchase program and has repurchased 3.2 million shares for $119 million from the start of 2024 through August [15][16]. Acquisitions and Growth Initiatives - Frontdoor is pursuing growth through acquisitions, including a $1.47 billion credit facility to fund the acquisition of 2-10 Home Buyers Warranty and refinance existing debt [12][13]. - The acquisition is expected to close in the fourth quarter, supporting the company's long-term expansion plans [13]. Industry Outlook - Despite challenges in the home warranty sector due to reduced consumer spending and a sluggish real estate market, there are signs of improvement with existing home inventory rising to 4.3 months of supply [10]. - Mortgage rates have declined, which may spur increased demand from homebuyers, positively impacting the home warranty market [11]. Financial Metrics - FTDR's return on invested capital (ROIC) stands at 35.75%, significantly higher than the industry average of 8.83%, indicating effective capital allocation and operational efficiency [18]. Earnings Estimates - The Zacks Consensus Estimate for FTDR's 2025 EPS has increased by 6.5% in the past 60 days, reflecting analysts' growing confidence in the stock [19].

Core Viewpoint - Purcell & Lefkowitz LLP is investigating Frontdoor, Inc. to determine if the company's directors breached their fiduciary duties related to recent corporate actions [1]. Group 1 - The investigation is on behalf of Frontdoor's shareholders [1]. - The law firm specializes in representing shareholders affected by securities fraud and breaches of fiduciary duty [3]. - Shareholders can obtain additional information regarding their rights and options at no cost [2].

Group 1: Kura Sushi USA, Inc. (KRUS) - Kura Sushi USA, Inc. is a Japanese restaurant chain with a Zacks Rank 1 [1] - The Zacks Consensus Estimate for its current year earnings increased by 21.2% over the last 60 days [1] - Kura Sushi's shares gained 78.4% over the last three months, outperforming the S&P 500's advance of 11.3% [1] - The company has a Momentum Score of A [1] Group 2: Frontdoor, Inc. (FTDR) - Frontdoor, Inc. is a home warranties company with a Zacks Rank 1 [2] - The Zacks Consensus Estimate for its current year earnings increased by 5.7% over the last 60 days [2] - Frontdoor's shares gained 28.2% over the last three months, also outperforming the S&P 500's advance of 11.3% [2] - The company possesses a Momentum Score of A [2] Group 3: LivaNova PLC (LIVN) - LivaNova PLC is a medical device company with a Zacks Rank 1 [3] - The Zacks Consensus Estimate for its current year earnings increased nearly 7% over the last 60 days [3] - LivaNova's shares gained 15.8% over the last three months, compared to the S&P 500's advance of 11.3% [3] - The company has a Momentum Score of A [3]

Frontdoor (FTDR) appears an attractive pick given a noticeable improvement in the company's earnings outlook. The stock has been a strong performer lately, and the momentum might continue with analysts still raising their earnings estimates for the company.Analysts' growing optimism on the earnings prospects of this home services provider is driving estimates higher, which should get reflected in its stock price. After all, empirical research shows a strong correlation between trends in earnings estimate re ...

For those looking to find strong Construction stocks, it is prudent to search for companies in the group that are outperforming their peers. Is Frontdoor (FTDR) one of those stocks right now? By taking a look at the stock's year-to-date performance in comparison to its Construction peers, we might be able to answer that question.Frontdoor is a member of our Construction group, which includes 88 different companies and currently sits at #5 in the Zacks Sector Rank. The Zacks Sector Rank gauges the strength o ...

Exhibit 99.1 Frontdoor Announces Record Third-Quarter 2024 Results Revenue Increased 3% to $540 Million; Gross Profit Margin Increased 550 Basis Points to 57%; Net Income Increased 40% to $100 Million; Adjusted EBITDA(1)Increased 29% to $165 Million; Repurchased $119 Million of Shares Through August 2024; Launched New American Home Shield App in October; 2-10 Acquisition Remains on Track to Close in the Fourth Quarter of 2024 MEMPHIS, TENN. — November 4, 2024 — Frontdoor, Inc. (NASDAQ: FTDR), the nation's l ...

Frontdoor, Inc. (NASDAQ: FTDR ) is a good company with strong fundamentals. The most important ones include consistent long run profitability, including over the pandemic which was not good for the business. The cashflows allow management to finance growth projectsThe City Stock PickerAs a seasoned investor with a rich educational background in Business, Finance, and Accounting from a prestigious UK university, I bring a holistic and in-depth understanding of the financial markets. My journey in the investm ...

Group 1 - Analysts project Frontdoor (FTDR) will announce quarterly earnings of $1.03 per share, a 9.6% increase year over year [1] - Revenues are expected to reach $540.52 million, reflecting a 3.2% increase from the same quarter last year [1] - There have been no revisions in the consensus EPS estimate over the last 30 days, indicating stability in analysts' forecasts [1] Group 2 - Revenue by Customer Channel - Renewals is estimated to reach $424.51 million, a change of +4.6% year over year [4] - Revenue by Customer Channel - Other is projected at $32.80 million, suggesting a significant increase of +36.7% year over year [4] - Revenue by Customer Channel - Direct-to-consumer (First-Year) is forecasted to be $47.60 million, indicating a decrease of -11.9% from the prior-year quarter [4] Group 3 - Revenue by Customer Channel - Real estate (First-Year) is expected to be $34.08 million, reflecting a decline of -14.8% year over year [5] - The customer retention rate is anticipated to remain at 76.2%, consistent with the same quarter last year [5] - Frontdoor shares have increased by +5.6% in the past month, outperforming the Zacks S&P 500 composite's +1.8% [5]

Have you been paying attention to shares of Frontdoor (FTDR) ? Shares have been on the move with the stock up 3.2% over the past month. The stock hit a new 52-week high of $49.36 in the previous session. Frontdoor has gained 38.5% since the start of the year compared to the 21.3% move for the Zacks Construction sector and the 18.3% return for the Zacks Building Products - Miscellaneous industry. What's Driving the Outperformance? The stock has an impressive record of positive earnings surprises, as it hasn' ...