By Dean Seal
Shares of Frontdoor climbed after the company raised its full-year guidance and logged higher earnings and revenue in the third quarter than analysts expected.
The stock was up 15% at $33.13 on Wednesday. Shares have gained 59% year to date.
The home-service plan provider that also owns American Home Shield said it now expects $1.765 billion to $1.775 billion in revenue for the year, up from its previous guidance for $1.73 billion to $1.75 billion.
Annual adjusted earnings before interest, taxes, depreciation and amortization are now projected to be $320 million to $330 million, compared with a prior outlook for $260 million to $280 million.
The upward revision comes after Frontdoor logged a third-quarter profit of $71 million, or 89 cents a share, compared with a profit of $28 million, or 34 cents a share, in the same quarter a year ago.
Stripping out one-time items, adjusted earnings were 94 cents a share. Analysts polled by FactSet had been expecting 54 cents a share.
Revenue rose 8% to $524 million, $11 million above the consensus estimate of analysts, according to FactSet.
Chief Financial Officer Jessica Ross said the strong results were driven by higher revenue conversion and margin gains from Frontdoor’s process improvement initiatives.
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