FTDR - Frontdoor stock slides after slashing full-year forecast

Frontdoor Inc. ( NASDAQ: FTDR ) shares slipped on Thursday after the company posted a mixed earnings result and trimmed its full year forecast.

For the second quarter, the home repair provider posted a narrow miss on EPS while pushing ast revenue expectations. The bottom line figure was particularly impacted by a 23% increase in the cost per service request “as a result of a deteriorating macroeconomic environment, a rapid acceleration of contractor-related inflation and higher parts and equipment costs”, according to a company release.

Given these increased costs, the company revised its revenue expectations to between $1.63B and $1.65B and gross margin between 41% and 42%. The cut to guidance is the second straight quarter of lowered expectations , with the $1.66B to $1.69B forecast in May was already reeled in from the initial guidance of $1.70B to $1.73B. Gross margin guidance was also cut from 44-45% versus the prior outlook of 46.5 to 47.5% forecast in the fourth quarter.

“While I am not pleased with our full-year outlook, I am convinced Frontdoor will emerge stronger as a result of the improvements we are making to the business and as the challenging macroeconomic environment subsides over time,” CEO Bill Cobb said. “In the near-term, we are moving quickly to improve execution and reduce our cost structure.”

Shares slid 4.2% on Thursday.

Read more on the details of the earnings result .

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