FTDR - Frontdoor stock slumps postmarket after guidance cut on macro headwinds

Frontdoor (NASDAQ:FTDR) stock slumped 26.5% postmarket Thursday after the home services firm lowered its 2022 outlook. The guidance cut is due to high inflation, global supply chain issues and continuation of a historically strong seller's market impacting FTDR's real estate channel.  The firm expects 2022 revenue of $1.66B-$1.69B vs. prior outlook of $1.70B-$1.73B. Consensus estimate is $1.71B.  2022 adj. EBITDA is projected to be $215M-$245M vs. prior guidance of $265M-$295M. FTDR expects 2022 gross margin of 44-45% vs. prior outlook of 46.5-47.5%. Q2 revenue is estimated to be $475M-$485M vs. consensus estimate of $489.15M.  FTDR expects Q2 adj. EBITDA of $75M-$90M, lower than the year-ago period due to an acceleration of inflationary cost pressures. Meanwhile, FTDR's Q1 results were largely in-line with Street estimates. Q1 revenue grew 6.7% to $351M. Double-digit revenue growth in FTDR's renewal and DTC channels was offset by lower real estate channel revenue due to the seller's market. Q1 adj. EBITDA fell 30.6% to $25M due to $24M

For further details see:

Frontdoor stock slumps postmarket after guidance cut on macro headwinds