Shares of Frontdoor Inc (FTDR) are soaring 5.01% in pre-market trading on Friday, following the release of impressive first-quarter 2025 earnings results and a new Buy rating from Truist Financial. The home service plan provider demonstrated robust financial performance across multiple metrics, signaling strong growth and improved profitability.

Frontdoor's Q1 2025 earnings report, released after market close on Thursday, revealed several positive highlights: - Revenue increased 13% to $426 million - Net income grew 9% to $37 million - Adjusted EBITDA surged 41% to $100 million - Member count expanded 7% to 2.1 million - Gross profit margin improved by 380 basis points to 55% - Adjusted earnings per share rose 46% to $0.64 The company also raised its full-year outlook, increasing the revenue forecast to $2.03-$2.05 billion and adjusted EBITDA to $500-$520 million. This upward revision reflects management's confidence in Frontdoor's growth trajectory and operational efficiency.

Adding to the positive sentiment, Truist Financial analyst Mark Hughes initiated coverage on Frontdoor with a Buy rating and set a price target of $67. This vote of confidence from a major financial institution further bolsters investor optimism about the company's prospects. While Frontdoor faces some challenges, including headwinds in the real estate channel and potential impacts from tariffs, the overall market reaction suggests that investors are focusing on the company's strong performance and improved guidance. The pre-market surge indicates that market participants are responding favorably to Frontdoor's ability to navigate challenges while delivering solid results and setting the stage for continued growth.