frontdoor, inc. (NasdaqGS:FTDR) is scheduled to report Q3 earnings results after markets close for trading on November 4, 2020.
The company is expected to report earnings of $0.59/share on revenue of $434.2 million. The consensus earnings per share (EPS) of $0.59/share is based on a poll of 8 analysts and represents a decline in eps of −19.2% over the same quarter last year, when the company reported earnings of $0.73/share.
The revenue forecast of $434.2 million based on a poll of 10 analysts implies a year-over-year (YoY) growth in revenue of 6.7%. Last year the company reported $407 million in revenue for the quarter.
|Metric||Expected||Prior Year||YoY Change|
Earnings Call Trends
Historically, management has exceeded analyst expectations 7 out of the last 8 tracked quarters, and missed expectations 1 quarter.
What are your expectations from frontdoor, inc. for earnings this quarter? Let us know in the comments!
In the following table, we summarize the company’s stock price movements after earnings releases. The “Price Day Prior” column shows the closing stock price on the day before the earnings report, and the “Price Next Day” column shows the stock price at the end of the trading day after the earnings report. After the last earnings report for the period ending June 30, 2020, the stock price reacted by increasing 7.0%.
|Report Date||Price Day Prior||Price Next Day||Change %||Result|
|August 5, 2020||$42.24||$45.22||7.0%||Increase|
|May 6, 2020||$39.67||$41.84||5.5%||Increase|
|February 26, 2020||$44.50||$43.55||−2.1%||Decline|
|November 5, 2019||$47.16||$44.64||−5.3%||Decline|
The other question to consider is one of earnings manipulation. There is a lot of pressure on management each quarter to deliver on earnings expectations. The Beneish M-Score is a statistical model that provides some insight into whether the company might be manipulating earnings. With a Beneish M-Score of −2.71, the model suggests that the company is not likely to be an earnings manipulator. A value of −2.71 implies a 0.3% chance of earnings manipulation.
Fundamentals And Technical Analysis
frontdoor, inc. is currently trading at $40.13/share, down −2.1% for the day. The company is trading at approximately 81.4% of its 52-week high of $49.51/share. The company’s stock price is down −11.3% since the last earnings report and down −4.1% over the previous week. The company’s 14 Day Relative Price Index (RSI) of 41.34 suggests the company is trading in technically neutral territory. The RSI is considered overbought when above 70 and oversold when below 30.
The current share price implies a price-to-earnings (P/E) multiple of 24.19 and a forward P/E multiple of 25.23.
frontdoor, inc.’s current share price also implies a price-to-book (P/B) multiple of −27.48. The following table summarizes some other key fundamental ratios:
|Last Reported Fiscal Period Key||FY2020.Q2|
|Period End Date||June 30, 2020|
|Stock Price (Current)||$40.13|
|P/E Ratio (Fwd)||25.2x|
|Price To Sales||2.4x|
|Total Debt / Total Capital||23.0%|
|Levered Free Cash Flow||$170 million|
|EV / EBITDA||14.0x|
frontdoor, inc. is a mid-cap stock with a market capitalization of $3.503 billion and a total enterprise value of $4 billion. The company operates in the Consumer Discretionary sector and the Diversified Consumer Services industry.
frontdoor, inc. provides home service plans in the United States. The company’s home service plans cover the repair or replacement of principal components of approximately 21 household systems and appliances, including electrical, plumbing, water heaters, refrigerators, dishwashers, and ranges/ovens/cooktops, as well as electronics, pools, and spas and pumps; and central heating, ventilation, and air conditioning systems. It serves homeowners under the American Home Shield, HSA, Landmark, OneGuard, Frontdoor, Candu, and Streem brands. frontdoor, inc. was founded in 1971 and is headquartered in Memphis, Tennessee.