Frontdoor (FTDR) Shares Skyrocket, What You Need To Know

Radek Strnad /
2024/05/02 3:11 pm EDT

What Happened:

Shares of home warranty company Frontdoor (NASDAQ:FTDR) jumped 7.7% in the afternoon session after the company reported first-quarter results that blew past analysts' adjusted EBITDA and EPS expectations. The top line benefited from a price increase (+11%), which more than offset the decline in volume (-8%). While its full-year revenue guidance was maintained, the company raised its full-year adjusted EBITDA guidance, showing that growth is as expected, but it's coming in more profitably. Overall, this quarter's results seemed fairly positive, and shareholders should feel optimistic.

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What is the market telling us:

Frontdoor's shares are not very volatile than the market average and over the last year have had only 4 moves greater than 5%. In context of that, today's move is indicating the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.

Frontdoor is down 0.3% since the beginning of the year, but at $34 per share it is still trading close to its 52-week high of $37 from August 2023. Investors who bought $1,000 worth of Frontdoor's shares 5 years ago would now be looking at an investment worth $957.43.

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