Frontdoor(US:FTDR) zacks.comยท2024-05-16 14:01Core Viewpoint - Frontdoor (FTDR) has shown significant stock performance, returning +23.7% over the past month, outperforming the S&P 500 composite's +5% and the Zacks Building Products - Miscellaneous industry's +4.7% [1] Earnings Estimate Revisions - Frontdoor is expected to post earnings of $0.99 per share for the current quarter, reflecting a year-over-year increase of +13.8% with a recent change of +5.9% in the Zacks Consensus Estimate [4] - For the current fiscal year, the consensus earnings estimate is $2.52, indicating a +9.6% change from the previous year, with a +7% change in the estimate over the last 30 days [4] - The next fiscal year's consensus earnings estimate of $2.73 suggests an +8.4% change from the prior year, with a +4.2% change in the estimate over the past month [5] Revenue Growth Forecast - The consensus sales estimate for Frontdoor is $536.41 million for the current quarter, representing a year-over-year change of +2.6% [8] - For the current fiscal year, the revenue estimates are $1.83 billion, indicating a +2.9% change, and for the next fiscal year, the estimate is $1.93 billion, reflecting a +5.3% change [8] Last Reported Results and Surprise History - In the last reported quarter, Frontdoor generated revenues of $378 million, a +3% year-over-year change, and an EPS of $0.43 compared to $0.29 a year ago [9] - The reported revenues exceeded the Zacks Consensus Estimate of $376.36 million by +0.44%, and the EPS surprise was +115% [9][10] Valuation - Frontdoor is graded B in the Zacks Value Style Score, indicating it is trading at a discount to its peers [14] - Valuation multiples such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF) are essential for assessing whether the stock is fairly valued [12][13] Bottom Line - The Zacks Rank 1 suggests that Frontdoor may outperform the broader market in the near term, supported by positive earnings estimate revisions and strong revenue growth potential [15]