Frontdoor (NASDAQ:FTDR) reported fourth-quarter financial results that significantly outperformed Wall Street expectations, driven by steady growth in its core home warranty business.
The Memphis-based company posted a fourth-quarter net income of $1 million, or 2 cents per share.
When adjusted for one-time items, earnings reached 23 cents per share, more than double the 11-cent consensus estimate from analysts surveyed by Zacks Investment Research.
Revenue for the quarter climbed to $433 million, surpassing the $420.6 million anticipated by market observers.
The performance caps a record fiscal year for the provider of home service plans, which reported a full-year profit of $255 million, or $3.42 per share, on total revenue of $2.09 billion.
The company’s growth remains supported by its ability to manage service costs and expand its "Direct-to-Consumer" and "Real Estate" channels.
Despite a volatile housing market, Frontdoor has successfully leveraged its digital platform and a vast network of service contractors to maintain high customer retention rates.