Frontdoor Inc (FTDR) shares unexpectedly plummeted 5.09% in Tuesday's intraday trading, despite the company reporting strong second-quarter results that beat analyst expectations and raising its full-year guidance. This sharp decline comes as a surprise, given the positive financial performance announced earlier in the day.

The home service plan provider reported second-quarter adjusted earnings of $1.63 per share, significantly surpassing the FactSet analyst consensus of $1.45. Revenue for the quarter reached $617 million, up 13.8% year-over-year and exceeding the expected $602.6 million. Additionally, Frontdoor raised its full-year 2025 revenue guidance to a range of $2.055 billion to $2.075 billion, up from the previous forecast of $2.03 billion to $2.05 billion.

The stark contrast between the company's strong financial performance and the stock's negative movement suggests potential profit-taking by investors who may have bought the stock in anticipation of positive results. The stock had gained 7% year-to-date prior to this plunge, indicating that some shareholders might be cashing in on recent gains. Additionally, despite the raised guidance, some market participants may have had even higher expectations, leading to disappointment and subsequent selling pressure. As trading continues, investors will be closely watching to see if this downward trend persists or if bargain hunters step in to take advantage of the sudden price drop.