Latest news with #Frontdoor
Yahoo
08-08-2025
- Business
- Yahoo
3 Russell 2000 Stocks We Keep Off Our Radar
The Russell 2000 (^RUT) is packed with potential breakout stocks, thanks to its focus on smaller companies with high growth potential. However, smaller size also means these businesses often lack the resilience and financial flexibility of large-cap firms, making careful selection crucial. Picking the right small caps isn't easy, and that's exactly why StockStory exists - to help you focus on the best opportunities. Keeping that in mind, here are three Russell 2000 stocks that don't make the cut and some better choices instead. Compass (COMP) Market Cap: $4.30 billion Fueled by its mission to replace the "paper-driven, antiquated workflow" of buying a house, Compass (NYSE:COMP) is a digital-first company operating a residential real estate brokerage in the United States. Why Are We Hesitant About COMP? Number of principal agents has disappointed over the past two years, indicating weak demand for its offerings Suboptimal cost structure is highlighted by its history of operating margin losses Lacking free cash flow generation means it has few chances to reinvest for growth, repurchase shares, or distribute capital Compass is trading at $8.30 per share, or 18.5x forward P/E. Dive into our free research report to see why there are better opportunities than COMP. Frontdoor (FTDR) Market Cap: $4.10 billion Established in 2018 as a spin-off from ServiceMaster Global Holdings, Frontdoor (NASDAQ:FTDR) is a provider of home warranty and service plans. Why Are We Wary of FTDR? Annual revenue growth of 6.8% over the last five years was below our standards for the consumer discretionary sector Demand for its offerings was relatively low as its number of home service plans has underwhelmed Projected sales growth of 8.6% for the next 12 months suggests sluggish demand Frontdoor's stock price of $57.39 implies a valuation ratio of 15.6x forward P/E. Read our free research report to see why you should think twice about including FTDR in your portfolio, it's free. Guardant Health (GH) Market Cap: $6.28 billion Pioneering the field of "liquid biopsy" with technology that can identify cancer-specific genetic mutations from a simple blood draw, Guardant Health (NASDAQ:GH) develops blood tests that detect and monitor cancer by analyzing tumor DNA in the bloodstream, helping doctors make treatment decisions without invasive biopsies. Why Is GH Not Exciting? Earnings per share fell by 19.6% annually over the last five years while its revenue grew, partly because it diluted shareholders Cash-burning tendencies make us wonder if it can sustainably generate shareholder value Limited cash reserves may force the company to seek unfavorable financing terms that could dilute shareholders At $50.52 per share, Guardant Health trades at 6.2x forward price-to-sales. If you're considering GH for your portfolio, see our FREE research report to learn more. Stocks We Like More Donald Trump's April 2024 "Liberation Day" tariffs sent markets into a tailspin, but stocks have since rebounded strongly, proving that knee-jerk reactions often create the best buying opportunities. The smart money is already positioning for the next leg up. Don't miss out on the recovery - check out our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.
Business Wire
05-08-2025
- Business
- Business Wire
Frontdoor Announces Second-Quarter 2025 Financial Results
MEMPHIS, Tenn.--(BUSINESS WIRE)-- Frontdoor, Inc. (NASDAQ: FTDR), the nation's leading provider of home warranties, today announced its second-quarter 2025 results. Second-Quarter 2025 Summary Revenue increased 14% to $617 million; comprised of a 2% increase from price and a 12% increase from higher volume primarily driven by the 2-10 acquisition Gross profit margin increased 130 basis points to a second-quarter record of 58% Net Income and Diluted Earnings Per Share increased 21% to $111 million and 26% to $1.48, respectively Adjusted EBITDA (1) increased 26% to $199 million Share repurchases totaled $150 million YTD through July 2025 Updated Full-Year 2025 Outlook Increasing revenue range to $2.055 billion to $2.075 billion Increasing gross profit margin range to 55% to 56% Increasing Adjusted EBITDA (2) range to $530 million to $550 million 'Frontdoor continues to perform exceptionally well, and we delivered another quarter of outstanding financial performance," said Chairman and Chief Executive Officer Bill Cobb. 'We organically grew Direct-to-Consumer member count 9%, we are successfully scaling non-warranty revenue and the 2-10 integration is ahead of schedule. In short, we are delivering on our strategic objectives and continue to position the business for future success." "We generated nearly $200 million in Adjusted EBITDA in the second quarter of 2025, underpinned by excellent operational execution supporting our margin structure," said Chief Financial Officer Jessica Ross. 'With strong first half results combined with increasing confidence in the second half, we are raising our full-year outlook and returning record amounts of cash to shareholders through share repurchases." Second-Quarter 2025 Results Revenue increased 14% to $617 million and was comprised of a 2% increase from price and a 12% increase from higher volume, primarily driven by the 2-10 acquisition. Renewal revenue increased 9% due to the impact of the 2-10 acquisition and higher price realization, partially offset by lower volume; Real estate revenue increased 21% due to the impact of the 2-10 acquisition; Direct-to-consumer revenue increased 12% due to the impact of the 2-10 acquisition and higher volume, partially offset by lower price from our discounting strategy to drive new home warranty member growth; and Other revenue increased 63% due to the growth of the New HVAC and Moen Programs and the addition of New Home Structural Warranty revenue. Period-over-Period Net Income and Adjusted EBITDA (1) Bridge (In millions) Net Income Adjusted EBITDA Three Months Ended June 30, 2024 $ 92 $ 158 Impact of change in revenue 51 51 Contract claims costs (1 ) (1 ) Sales and marketing costs 3 3 Customer service costs (2 ) (2 ) Stock-based compensation expense (2 ) — Acquisition-related costs 4 — Other general and administrative costs (9 ) (9 ) Depreciation and amortization expense (12 ) — Restructuring charges 1 — Interest expense (10 ) — Interest and net investment income (1 ) — Provision for income taxes (4 ) — Three Months Ended June 30, 2025 $ 111 $ 199 Expand Second-quarter 2025 Net Income increased 21% to $111 million and second-quarter 2025 Adjusted EBITDA (1) increased 26% to $199 million. The table above shows the change versus the prior-year period, and includes: $51 million from higher revenue conversion (3). $1 million of higher contract claims costs (4), excluding the impact of claims costs related to the change in revenue. The increase in contract claims costs primarily reflects: Low-single-digit cost inflation across our contractor network, replacement parts and equipment; A lower number of service requests per customer, primarily driven by $5 million of favorable weather; and Favorable claims cost development of $4 million, compared to a $5 million favorable claims cost development in the second quarter of 2024. $3 million of lower sales & marketing costs, primarily due to timing. Changes in customer service costs, acquisition-related costs, other general and administrative costs, depreciation and amortization expense, and interest expense are primarily due to the 2-10 acquisition. Cash Flow Net cash provided from operating activities was $251 million for the six months ended June 30, 2025 and was primarily comprised of $208 million in earnings adjusted for non-cash charges and $48 million of cash provided from working capital and long-term insurance related accounts, partially offset by $5 million in payments for restructuring charges. Net cash provided from investing activities was $42 million for the six months ended June 30, 2025 and was primarily comprised of the sales and maturities of available-for-sale securities, partially offset by capital expenditures related to technology projects. Net cash used for financing activities was $153 million for the six months ended June 30, 2025 and was primarily comprised of $134 million of share repurchases (excluding taxes and fees) and $14 million of scheduled debt payments. Free Cash Flow (1) increased 44% to $237 million for the six months ended June 30, 2025. Cash as of June 30, 2025 was $562 million and was comprised of $185 million of restricted net assets and $377 million of Unrestricted Cash. Capital Allocation Update Increasing target for 2025 share repurchases to approximately $250 million. Third-Quarter 2025 Outlook Revenue of approximately $605 million to $615 million. Adjusted EBITDA (2) of approximately $180 million to $190 million. Increasing revenue range to $2.055 billion to $2.075 billion. Key assumptions: 2-4% increase in realized price. 9-10% increase in volume. Approximately 10% increase in renewal channel revenue. Low single-digit increase in direct-to-consumer channel revenue. High single-digit increase in real estate channel revenue. Other revenue of $180 million to $190 million, an approximately $70 million increase versus the prior year. This is primarily driven by the addition of New Home Structural Warranty revenue, and increases in our New HVAC and Moen programs. Home warranty member count to decline 1-3% in 2025. Increasing gross profit margin range to 55% to 56%. SG&A range narrowed to $660 million to $670 million. Increasing Adjusted EBITDA (2) range to $530 million to $550 million. Capital expenditures lowered to approximately $35 million. Annual effective tax rate lowered to approximately 24%. Second-Quarter 2025 Earnings Conference Call Frontdoor has scheduled a conference call today, August 5, 2025, at 7:30 a.m. Central time (8:30 a.m. Eastern time). During the call, Bill Cobb, Chairman and Chief Executive Officer, and Jessica Ross, Chief Financial Officer, will discuss the company's operational performance and financial results for second-quarter 2025 and respond to questions from the investment community. Participants can register for the conference call by clicking Once completed, each participant will receive access details via email. Additionally, the conference call will be available via webcast which will include a slide presentation highlighting the company's results. To participate via webcast and view the presentation, visit The call will be available for replay for approximately 60 days. To access the replay of this call, please call 877-481-4010 and enter conference passcode 52693 (international participants: 919-882-2331, conference passcode 52693). To view a replay of the webcast, visit the company's About Frontdoor, Inc. Frontdoor is the industry leader in home warranties and new home structural warranties, and a leading provider of on-demand home repair and maintenance services. As the parent company of two leading brands – American Home Shield and 2-10 Home Buyers Warranty – totaling more than two million members – we bring over 50 years of experience in the home warranty category, a cultivated national network of independent service contractors, and a reputation for delivering quality service and product innovation. American Home Shield, the leader in home warranties, gives homeowners peace of mind, budget protection and convenience, covering up to 29 home systems and appliances from costly and unexpected breakdowns. 2-10 Home Buyers Warranty is the leader in new home structural warranties, providing home builders with coverage for structural failures. These two brands, together with Frontdoor's cutting-edge non-warranty services, provide an unbeatable combination that meets the full suite of homeowner repair and maintenance needs. For more information about Frontdoor, Inc., please visit Forward-Looking Statements This news release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including, in particular, projected future performance and any statements about Frontdoor's plans, strategies and prospects. Forward-looking statements can be identified by the use of forward-looking terms such as 'believe,' 'expect,' 'estimate,' 'could,' 'should,' 'intend,' 'may,' 'plan,' 'seek,' 'anticipate,' 'project,' 'will,' 'shall,' 'would,' 'aim,' or other comparable terms. These forward-looking statements are subject to known and unknown risks and uncertainties, many of which may be beyond our control. Such risks and uncertainties include, but are not limited to: changes in macroeconomic conditions, including inflation, tariffs and global supply chain challenges and changing interest rates, especially as they may affect existing or new home sales, consumer confidence, labor availability or our costs; our ability to successfully implement our business strategies; the ability of our marketing efforts to be successful and cost-effective; our dependence on our first-year direct-to-consumer and real estate acquisition channels and our renewal channel; changes in the source and intensity of competition in our market, including risks related to the development, deployment, and use of artificial intelligence in our business and industry; our ability to attract, retain and maintain positive relations with third-party contractors and vendors; increases in parts, appliance and home system prices, and other operating costs; changes in U.S. tariffs or import/export regulations; our ability to attract and retain qualified key employees and labor availability in our customer service operations; our dependence on third-party vendors, including business process outsourcers, and third-party component suppliers; cybersecurity breaches, disruptions or failures in our technology systems; our ability to protect the security of personal information about our customers; compliance with, or violation of, laws and regulations, including consumer protection laws, or lawsuits or other claims by third parties, increasing our legal and regulatory expenses; weather, including adverse conditions, Acts of God and seasonality, along with related regulations; our ability to underwrite risks accurately and to charge adequate prices to builder members, as well as our ability to effectively re-insure a large portion of those risks; the availability of reinsurance to manage a substantial portion of our potential loss exposure for our new home structural warranty business; evolving corporate governance and disclosure regulations and expectations; our ability to protect our intellectual property and other material proprietary rights; negative reputational and financial impacts resulting from acquisitions or strategic transactions; a requirement to recognize impairment charges; third-party use of our trademarks as search engine keywords to direct our potential customers to their own websites; inappropriate use of social media by us or other parties to harm our reputation; special risks applicable to operations outside the United States by us or our business process outsource providers; risks related to our acquisition of 2-10 Home Buyers Warranty (the '2-10 HBW Acquisition'), including the risk that the 2-10 HBW Acquisition may not achieve its intended results; any liabilities, losses, or other exposures for which we do not have adequate insurance coverage, indemnification, or other protection; increase in our indebtedness as a result of financing the 2-10 HBW Acquisition; a return on investment in our common stock is dependent on appreciation in the price; inclusion in our certificate of incorporation a forum selection clause that could discourage an acquisition of our company or litigation against us and our directors and officers; the effects of our significant indebtedness, our ability to incur additional debt and the limitations contained in the agreements governing such indebtedness; increases in interest rates increasing the cost of servicing our indebtedness and counterparty credit risk due to instruments designed to minimize exposure to market risks; increased borrowing costs due to lowering or withdrawal of the credit ratings, outlook or watch assigned to us or our credit facilities; and our ability to generate the significant amount of cash needed to fund our operations and service our debt obligations. We caution you that forward-looking statements are not guarantees of future performance or outcomes and that actual performance and outcomes, including, without limitation, our actual results of operations, financial condition and liquidity, and the development of new markets or market segments in which we operate, may differ materially from those made in or suggested by the forward-looking statements contained in this news release. For a discussion of other important factors that could cause Frontdoor's results to differ materially from those expressed in, or implied by, the forward-looking statements included in this document, refer to the risks and uncertainties detailed from time to time in Frontdoor's periodic reports filed with the SEC, including the disclosure contained in Item 1A. Risk Factors in our 2024 Annual Report on Form 10-K filed with the SEC, as such factors may be updated from time to time in Frontdoor's periodic filings with the SEC. Except as required by law, Frontdoor does not undertake any obligation to update or revise the forward-looking statements to reflect new information or events or circumstances that occur after the date of this news release or to reflect the occurrence of unanticipated events or otherwise. Readers are advised to review Frontdoor's filings with the SEC, which are available from the SEC's EDGAR database at and via Frontdoor's website at Non-GAAP Financial Measures To supplement Frontdoor's results presented in accordance with accounting principles generally accepted in the United States ('U.S. GAAP'), Frontdoor has disclosed the non-GAAP financial measures of Adjusted EBITDA, Free Cash Flow, Adjusted Net Income, Adjusted Diluted Earnings Per Share, and Unrestricted Cash. We define "Adjusted EBITDA" as net income before depreciation and amortization expense; goodwill and intangibles impairment; restructuring charges; acquisition-related costs; provision for income taxes; non-cash stock-based compensation expense; interest expense; loss on extinguishment of debt; and other non-operating expenses. We believe Adjusted EBITDA is useful for investors, analysts and other interested parties as it facilitates company-to-company operating performance comparisons by excluding potential differences caused by variations in capital structures, taxation, the age and book depreciation of facilities and equipment, restructuring and acquisition initiatives and equity-based, long-term incentive plans. We define 'Free Cash Flow' as net cash provided from operating activities less property additions. Free Cash Flow is not a measurement of our financial performance or liquidity under U.S. GAAP and does not purport to be an alternative to net cash provided from operating activities or any other performance or liquidity measures derived in accordance with U.S. GAAP. Free Cash Flow is useful as a supplemental measure of our liquidity. Management uses Free Cash Flow to facilitate company-to-company cash flow comparisons, which may vary from company-to-company for reasons unrelated to operating performance. We define 'Adjusted Net Income' as net income before: amortization expense; restructuring charges; loss on extinguishment of debt; other non-operating expenses; and the tax impact of the aforementioned adjustments. We believe Adjusted Net Income is useful for investors, analysts and other interested parties as it facilitates company-to-company operating performance comparisons by excluding potential differences caused by items listed in this definition. We define 'Adjusted Diluted Earnings per Share' as Adjusted Net Income divided by the weighted-average diluted common shares outstanding. We define 'Unrestricted Cash' as cash not subject to third-party restrictions. For additional information related to our third-party restrictions, see 'Liquidity and Capital Resources — Liquidity' under the heading 'Management's Discussion and Analysis of Financial Condition and Results of Operations' in our 2024 Annual Report on Form 10-K filed with the SEC. See the schedules attached hereto for additional information and reconciliations of such non-GAAP financial measures. Management believes these non-GAAP financial measures provide useful supplemental information for its and investors' evaluation of Frontdoor's business performance and are useful for period-over-period comparisons of the performance of Frontdoor's business. While we believe that these non-GAAP financial measures are useful in evaluating our business, this information should be considered as supplemental in nature and is not meant to be considered in isolation or as a substitute for the related financial information prepared in accordance with U.S. GAAP. In addition, these non-GAAP financial measures may not be the same as similarly entitled measures reported by other companies. © 2025 Frontdoor, Inc. All rights reserved. The following terms, which may be used in this press release, are trademarks of Frontdoor, Inc. and its subsidiaries: Frontdoor®, American Home Shield®, HSA™, OneGuard®, Landmark Home Warranty®, Streem®, 2-10 HBW®, and related logos and designs. All other trademarks used herein are the property of their respective owners. (1) See 'Reconciliations of Non-GAAP Financial Measures' accompanying this release for a reconciliation of Adjusted EBITDA, Free Cash Flow, Adjusted Net Income and Adjusted Diluted Earnings per Share, each a non-GAAP measure, to the nearest GAAP measure. See 'Non-GAAP Financial Measures' included in this release for descriptions of calculations of these measures. Amounts presented in the reconciliations and other tables presented herein may not sum due to rounding. (2) A reconciliation of the forward-looking Adjusted EBITDA outlook to net income cannot be provided without unreasonable effort because of the inherent difficulty of accurately forecasting the occurrence and financial impact of the various adjusting items necessary for such reconciliation that have not yet occurred, are out of our control, or cannot be reasonably predicted. For the same reasons, the company is unable to assess the probable significance of the unavailable information, which could have a material impact on its future GAAP financial results. (3) Revenue conversion includes the impact of the change in the number of home warranties as well as the impact of year-over-year price changes. The impact of the change in the number of home warranties considers the associated revenue on those plans less an estimate of contract claims costs based on margin experience in the prior year period. (4) Contract claims costs includes the impact of changes in service request incidence, inflation and other drivers associated with the number of home warranties in the prior year period. The impact on contract claims costs resulting from year-over-year changes in the number of home warranties is included in revenue conversion above. Expand Frontdoor, Inc. Condensed Consolidated Statements of Financial Position (Unaudited) (In millions, except share data) As of June 30, December 31, 2025 2024 Assets: Current Assets: Cash and cash equivalents $ 562 $ 421 Marketable securities — 15 Receivables, less allowance of $4 and $4, respectively 10 10 Prepaid expenses and other current assets 37 42 Contract assets 11 — Total Current Assets 620 488 Other Assets: Property and equipment, net 68 73 Goodwill 972 967 Intangible assets, net 412 448 Operating lease right-of-use assets 7 8 Long-term marketable securities — 38 Deferred reinsurance 68 65 Reinsurance recoverables 9 9 Deferred customer acquisition costs 12 11 Other assets 3 2 Total Assets $ 2,172 $ 2,107 Liabilities and Shareholders' Equity: Current Liabilities: Accounts payable $ 106 $ 71 Accrued liabilities: Payroll and related expenses 33 44 Home warranty claims 91 74 Other 54 28 Deferred revenue 104 123 Current portion of long-term debt 29 29 Total Current Liabilities 416 369 Long-Term Debt 1,157 1,170 Other Long-Term Liabilities: Deferred tax liabilities, net 38 49 Operating lease liabilities 19 20 Unearned insurance premium 238 233 Unpaid losses and loss adjustment reserves 13 12 Long-term deferred revenue 20 12 Other long-term liabilities 18 4 Total Other Long-Term Liabilities 346 329 Commitments and Contingencies Shareholders' Equity: Common stock, $0.01 par value; 2,000,000,000 shares authorized; 88,086,073 shares issued and 73,111,103 shares outstanding as of June 30, 2025 and 87,434,468 shares issued and 75,314,243 shares outstanding as of December 31, 2024 1 1 Additional paid-in capital 167 152 Retained earnings 678 530 Accumulated other comprehensive loss (13 ) — Less treasury stock, at cost; 14,974,970 shares as of June 30, 2025 and 12,120,225 shares as of December 31, 2024 (580 ) (444 ) Total Shareholders' Equity 254 239 Total Liabilities and Shareholders' Equity $ 2,172 $ 2,107 Expand Frontdoor, Inc. Consolidated Statements of Cash Flows (Unaudited) (In millions) Six Months Ended June 30, 2025 2024 Cash and Cash Equivalents at Beginning of Period $ 421 $ 325 Cash Flows from Operating Activities: Net Income 148 126 Adjustments to reconcile net income to net cash provided from operating activities: Depreciation and amortization expense 44 18 Deferred income tax benefit (4 ) — Stock-based compensation expense 17 15 Restructuring charges — 1 Payments for restructuring charges (5 ) (3 ) Other 3 1 Changes in: Receivables (1 ) (1 ) Prepaid expenses and other current assets (10 ) (4 ) Deferred reinsurance (2 ) — Deferred policy acquisition costs (1 ) — Deferred customer acquisition costs (1 ) — Accounts payable 35 30 Deferred revenue (11 ) (7 ) Accrued liabilities 11 (2 ) Unpaid losses and loss adjustment reserves 1 — Deferred insurance premiums 6 — Current income taxes 22 13 Net Cash Provided from Operating Activities 251 187 Cash Flows from Investing Activities: Purchases of property and equipment (14 ) (22 ) Business acquisitions, net of cash acquired 3 — Purchases of available-for-sale securities (6 ) — Sales and maturities of available-for-sale securities 60 — Net Cash Provided from (Used for) Investing Activities 42 (22 ) Cash Flows from Financing Activities: Repayments of debt (14 ) (8 ) Repurchases of common stock (135 ) (58 ) Other financing activities (3 ) (4 ) Net Cash Used for Financing Activities (153 ) (71 ) Cash Increase During the Period 141 93 Cash and Cash Equivalents at End of Period $ 562 $ 419 Expand Reconciliations of Non-GAAP Financial Measures The following table presents reconciliations of Net Income to Adjusted Net Income. Three Months Ended Six Months Ended June 30, June 30, (In millions, except per share amounts) 2025 2024 2024 2023 Net Income $ 111 $ 92 $ 148 $ 126 Amortization expense 12 1 25 1 Acquisitions-related Costs 2 6 4 6 Restructuring Charges (0 ) 1 0 1 Tax Impact of Adjustments (3 ) — (7 ) (1 ) Adjusted Net Income $ 122 $ 100 $ 171 $ 134 Adjusted Earnings per Share: Basic $ 1.66 $ 1.28 $ 2.31 $ 1.72 Diluted $ 1.63 $ 1.27 $ 2.27 $ 1.71 Weighted-average Common Shares outstanding: Basic 73.5 77.7 74.1 78.0 Diluted 74.7 78.1 75.4 78.5 Expand The following table presents reconciliations of net cash provided from operating activities to Free Cash Flow. Six Months Ended June 30, (In millions) 2025 2024 Net cash provided from operating activities $ 251 $ 187 Property additions (14 ) (22 ) Free Cash Flow $ 237 $ 164 Expand The following table presents reconciliations of Net Income to Adjusted EBITDA. Three Months Ended Six Months Ended June 30, June 30, (In millions) 2025 2024 2025 2024 Net Income $ 111 $ 92 $ 148 $ 126 Depreciation and amortization expense 21 9 44 18 Restructuring charges — 1 — 1 Acquisition-related costs 2 6 4 6 Provision for income taxes 36 32 46 43 Non-cash stock-based compensation expense 9 8 17 15 Interest expense 20 10 39 20 Other 1 — 1 — Adjusted EBITDA $ 199 $ 158 $ 300 $ 229 Expand Key Business Metrics 2025 2024 Number of home warranties (in millions) 2.09 1.95 Renewals 1.58 1.50 First-Year Direct-To-Consumer 0.31 0.26 First-Year Real Estate 0.20 0.18 Increase (Reduction) in number of home warranties (1) 7 % (6 ) % Customer retention rate (1) 79.7 % 76.6 % Expand (1) Customer retention rate is presented on a rolling 12-month basis in order to avoid seasonal anomalies. As of June 30, 2025, excluding the 2-10 home warranties acquired on December 19, 2024, the reduction in home warranties was two percent, and the customer retention rate was 78.3 percent. Expand
Yahoo
04-08-2025
- Business
- Yahoo
Topgolf Callaway, Clarus, Frontdoor, and Guess Stocks Trade Up, What You Need To Know
What Happened? A number of stocks jumped in the afternoon session after markets rebounded following a sharp sell-off in the previous trading session as weaker-than-expected U.S. jobs data fueled investor hopes for a potential interest rate cut by the Federal Reserve. The July Nonfarm Payrolls report revealed a gain of only 73,000 jobs, significantly below the 110,000 expected. Compounding the news, prior months' figures were revised downward by over 250,000 jobs. This data, indicating a cooling labor market, has led investors to dramatically increase bets on a September interest rate cut by the Federal Reserve, with the probability jumping to over 80% according to the CME FedWatch Tool. The prospect of lower borrowing costs typically stimulates economic activity and boosts consumer spending on non-essential goods and services, which directly benefits companies in the consumer discretionary space. The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Among others, the following stocks were impacted: Leisure Facilities company Topgolf Callaway (NYSE:MODG) jumped 4.8%. Is now the time to buy Topgolf Callaway? Access our full analysis report here, it's free. Leisure Products company Clarus (NASDAQ:CLAR) jumped 3.2%. Is now the time to buy Clarus? Access our full analysis report here, it's free. Specialized Consumer Services company Frontdoor (NASDAQ:FTDR) jumped 3.3%. Is now the time to buy Frontdoor? Access our full analysis report here, it's free. Apparel and Accessories company Guess (NYSE:GES) jumped 3.9%. Is now the time to buy Guess? Access our full analysis report here, it's free. Zooming In On Topgolf Callaway (MODG) Topgolf Callaway's shares are extremely volatile and have had 34 moves greater than 5% over the last year. In that context, today's move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business. The previous big move we wrote about was 6 days ago when the stock dropped 3.1% as the latest U.S. consumer confidence report revealed underlying weakness despite a headline increase, raising concerns about future spending. While the Conference Board's headline Consumer Confidence Index rose to 97.2 in July, the details painted a more cautious picture for investors. The Present Situation Index, a measure of consumers' assessment of current business and labor market conditions, actually fell. More telling for the sector, the report showed a decline in buying intentions for major discretionary items such as homes, cars, and most appliances. This combination of factors signals potential weakness in future consumer spending, casting a shadow over companies that rely on non-essential purchases. Topgolf Callaway is down 4.8% since the beginning of the year, and at $8.57 per share, it is trading 38.8% below its 52-week high of $14 from August 2024. Investors who bought $1,000 worth of Topgolf Callaway's shares 5 years ago would now be looking at an investment worth $433.94. Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we've identified a relatively under-the-radar profitable growth stock benefiting from the rise of AI, available to you FREE via this link.
Yahoo
04-08-2025
- Business
- Yahoo
Frontdoor (FTDR) To Report Earnings Tomorrow: Here Is What To Expect
Home warranty company Frontdoor (NASDAQ:FTDR) will be reporting results this Tuesday before market open. Here's what you need to know. Frontdoor beat analysts' revenue expectations by 2.1% last quarter, reporting revenues of $426 million, up 12.7% year on year. It was a very strong quarter for the company, with EBITDA guidance for next quarter exceeding analysts' expectations and a solid beat of analysts' EPS estimates. It reported 2.1 million home service plans, up 7.1% year on year. Is Frontdoor a buy or sell going into earnings? Read our full analysis here, it's free. This quarter, analysts are expecting Frontdoor's revenue to grow 11.3% year on year to $603.3 million, improving from the 3.6% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.45 per share. The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Frontdoor has only missed Wall Street's revenue estimates once over the last two years, exceeding top-line expectations by 1.6% on average. Looking at Frontdoor's peers in the specialized consumer services segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Service International delivered year-on-year revenue growth of 3%, beating analysts' expectations by 1.3%, and Pool reported flat revenue, in line with consensus estimates. Service International's stock price was unchanged after the resultswhile Pool was up 2.6%. Read our full analysis of Service International's results here and Pool's results here. Investors in the specialized consumer services segment have had steady hands going into earnings, with share prices flat over the last month. Frontdoor is down 1.1% during the same time and is heading into earnings with an average analyst price target of $55.50 (compared to the current share price of $58.10). Unless you've been living under a rock, it should be obvious by now that generative AI is going to have a huge impact on how large corporations do business. While Nvidia and AMD are trading close to all-time highs, we prefer a lesser-known (but still profitable) semiconductor stock benefiting from the rise of AI. Click here to access our free report on our favorite semiconductor growth story. StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here. Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Business Wire
30-07-2025
- Business
- Business Wire
American Home Shield Now Offering 50% Off Its Most Popular Plans During the Blazing Days of Summer
MEMPHIS, Tenn.--(BUSINESS WIRE)-- American Home Shield , a Frontdoor, Inc. (NASDAQ: FTDR) company and the nation's leading provider of home warranties, is now offering 50% off its ShieldGold™ and ShieldSilver™ home warranty plans for a limited time. 'With summer now well underway and heat waves impacting much of the country, we are offering 50% off on two of our most popular plans to help homeowners protect their major home systems and appliances,' said Kathy Collins, Frontdoor, Inc.'s Chief Revenue Officer. An AHS home warranty is a one-year, renewable home warranty plan that covers selected major home systems and appliances, like heating and air conditioning (HVAC), refrigerator, water heater, and washer and dryer. Plans can cover the repair and replacement costs when parts of covered systems and appliances break down due to normal wear and tear. Coverage becomes effective 30 days after the contract is signed. The ShieldSilver plan covers parts of 14 major systems (HVAC, plumbing, electrical) to help keep your home running. The ShieldGold plan protects parts of 23 major home systems, plus appliances in your home. As an added benefit of the ShieldGold plan, members can video chat through the AHS app with a highly experienced, live repair Expert to help with the issue at no extra cost. The Expert can help assess or potentially even fix the problem right over-the-phone. For more information, please visit , or for coverage details, including fees, limits, and limitations and exclusions, visit New Jersey Residents: The product being offered is a service contract and is separate and distinct from any product or service warranty which may be provided by the home builder or manufacturer. About Frontdoor, Inc. Frontdoor is the industry leader in home warranties and new home structural warranties, and a leading provider of on-demand home repair and maintenance services. As the parent company of two leading brands – American Home Shield and 2-10 Home Buyers Warranty – totaling more than two million members – we bring over 50 years of experience in the home warranty category, a cultivated national network of independent service contractors, and a reputation for delivering quality service and product innovation. American Home Shield, the leader in home warranties, gives homeowners peace of mind, budget protection and convenience, covering up to 23 home systems and appliances from costly and unexpected breakdowns. 2-10 Home Buyers Warranty is the leader in new home structural warranties, providing home builders with coverage for structural failures. These two brands, together with Frontdoor's cutting-edge on-demand services, provide an unbeatable combination that meets the full suite of homeowner repair and maintenance needs. For more information about Frontdoor, Inc., please visit . FTDR-Company
