Frontdoor (NASDAQ:FTDR) Trading Up 14.2% Following Better-Than-Expected Earnings

Frontdoor Inc. (NASDAQ:FTDR) shares traded up 14.2% during trading on Thursday following a stronger than expected earnings report. The stock traded as high as $63.66 and last traded at $64.2670. 59,422 shares traded hands during mid-day trading, a decline of 88% from the average session volume of 496,704 shares. The stock had previously closed at $56.30.

The company reported $0.23 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.11 by $0.12. Frontdoor had a net margin of 12.87% and a return on equity of 122.74%. The business had revenue of $433.00 million during the quarter, compared to analysts’ expectations of $421.62 million. During the same period last year, the firm posted $0.27 earnings per share. The business’s revenue was up 13.1% on a year-over-year basis.

Frontdoor News Summary

Here are the key news stories impacting Frontdoor this week:

• Positive Sentiment: Q4 earnings topped expectations — Frontdoor reported EPS of $0.23 vs. consensus $0.11 and revenue of $433M vs. ~$421.6M, showing 13.1% YoY revenue growth; those beats are the main near-term catalyst supporting the stock. Frontdoor (FTDR) Q4 Earnings and Revenues Surpass Estimates
• Positive Sentiment: Profitability metrics look healthy — reported net margin (~12.9%) and an elevated return on equity (122.7%) suggest strong operating leverage and capital returns that investors favor. MarketBeat Q4 report & metrics
• Neutral Sentiment: Company materials and conference call published — slides and the earnings call transcript provide management color on member trends, margins and margin drivers; useful for assessing sustainability of the beat. Q4 2025 Earnings Call Transcript
• Neutral Sentiment: Analyst notes and previews highlighted expectations ahead of the print; Zacks and other outlets compared line items to estimates and prior-year results — helpful for modeling but not new market-moving data by itself. Zacks analysis of key metrics
• Negative Sentiment: Guidance disappointed some investors — reports indicate the company’s FY2026 revenue/earnings outlook came in at or below some expectations, which could cap upside and explain mixed reactions despite the beat. Frontdoor beats Q4 estimates but guides below expectations

Wall Street Analysts Forecast Growth

Several research analysts recently weighed in on FTDR shares. Wall Street Zen cut Frontdoor from a “buy” rating to a “hold” rating in a research note on Monday, November 24th. Truist Financial set a $71.00 price target on shares of Frontdoor in a report on Monday, January 26th. Oppenheimer reaffirmed an “outperform” rating and issued a $70.00 price objective on shares of Frontdoor in a research note on Thursday. Finally, Weiss Ratings reissued a “hold (c+)” rating on shares of Frontdoor in a research note on Monday, December 29th. Two investment analysts have rated the stock with a Buy rating, three have issued a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock currently has an average rating of “Hold” and a consensus target price of $61.50.

Institutional Trading of Frontdoor

A number of hedge funds have recently bought and sold shares of the company. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. increased its position in shares of Frontdoor by 4.5% in the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 45,846 shares of the company’s stock worth $1,761,000 after acquiring an additional 1,994 shares in the last quarter. Millennium Management LLC grew its position in Frontdoor by 533.0% during the 1st quarter. Millennium Management LLC now owns 307,497 shares of the company’s stock worth $11,814,000 after purchasing an additional 258,920 shares in the last quarter. Empowered Funds LLC raised its stake in Frontdoor by 10.5% during the 1st quarter. Empowered Funds LLC now owns 11,008 shares of the company’s stock valued at $423,000 after purchasing an additional 1,044 shares during the period. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC lifted its holdings in shares of Frontdoor by 5.9% in the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 237,526 shares of the company’s stock valued at $9,126,000 after purchasing an additional 13,134 shares in the last quarter. Finally, Ethic Inc. purchased a new stake in shares of Frontdoor in the second quarter valued at $222,000.

Frontdoor Trading Up 17.0%

The company has a quick ratio of 1.73, a current ratio of 1.73 and a debt-to-equity ratio of 3.64. The firm has a market cap of $4.75 billion, a price-to-earnings ratio of 18.77 and a beta of 1.34. The company has a 50-day moving average price of $58.28 and a 200 day moving average price of $59.72.

About Frontdoor

Frontdoor, Inc (NASDAQ:FTDR) is a leading provider of home service plans and repair solutions for residential property owners. The company offers contract-based coverage that helps homeowners manage the cost of repairing and replacing essential household systems and appliances, including heating and cooling, plumbing, electrical wiring, water heaters, washers, dryers, refrigerators and other major kitchen equipment.

Frontdoor delivers its services through a nationwide network of independent service professionals and contractors, leveraging a cloud-based platform and call center infrastructure to coordinate service visits and process claims.