William Blair analyst Jeff Schmitt has maintained their bullish stance on FTDR stock, giving a Buy rating on April 25.
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Jeff Schmitt has given his Buy rating due to a combination of factors that highlight Frontdoor’s strong financial performance. The company reported an impressive adjusted EPS of $0.64, significantly surpassing both the firm’s estimate and the consensus. This achievement was bolstered by a record gross margin of 55.2%, which exceeded expectations despite an increase in customer service requests driven by unfavorable weather conditions.
Additionally, Frontdoor’s revenue growth of 13% to $426 million was noteworthy, surpassing both the consensus and internal estimates. This growth was fueled by a combination of pricing improvements and higher volumes, particularly from the 2-10 deal. The company also demonstrated strategic financial management by executing substantial stock repurchases, capitalizing on a stock pullback. These factors collectively contributed to a 46% increase in adjusted EPS, reinforcing the Buy rating despite challenges in the housing market.
Schmitt covers the Financial sector, focusing on stocks such as StoneX Group, Charles Schwab, and Tradeweb Markets. According to TipRanks, Schmitt has an average return of 6.4% and a 65.52% success rate on recommended stocks.