Fortrea stock price falls about 6% due to decline in revenue and profits From Investing.com
DURHAM, N.C. – Global contract research firm Fortrea Holdings Inc. (NASDAQ:FTRE) reported a disappointing first quarter in which both earnings and revenue fell short of Wall Street expectations.
The company’s adjusted loss per share was -$0.04, well below analyst estimates of $0.19. Revenue also missed targets, coming in at $662.1 million compared to the consensus estimate of $776 million. The stock price fell 5.9% after the report was released.
Compared to the same period last year, Portrea’s sales decreased by approximately 4.6% from $693.9 million. The company’s GAAP net loss widened to $81.6 million, a stark contrast to the GAAP net income of $7.3 million reported in the first quarter of 2023. Adjusted EBITDA for the quarter was $29.5 million, down from $41.7 million in the same quarter last year.
Fortrea Chairman and CEO Tom Pike acknowledged the challenges posed by the company’s 2023 spinoff but remained optimistic about demand for its services and the company’s operational health. He emphasized that the company is focused on generating momentum for the remainder of the year and that progress is being made in divesting its endpoint clinical and patient access businesses.
Forward, Fortrea gave full-year 2024 revenue guidance of $2.785 billion to $2.855 billion, which is below the analyst consensus of $3.08 billion. The midpoint of this guidance range, $2.82 billion, is well below the consensus estimate. Adjusted EBITDA guidance for the year was set at between $240 million and $260 million.
The Company’s financial results have been updated to reflect ongoing operations only and to revise projected performance, taking into account foreign currency exchange rates as of December 31, 2023. Fortrea’s backlog as of March 31, 2024 was $7.4 billion (based on billings-to-income ratio). 1.11x per quarter, indicating a healthy pipeline of future business.
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