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Yahoo
4 days ago
- Business
- Yahoo
FTRE Q1 CY2025 Earnings Call: Revenue Miss, Adjusted Profit Beat, and CEO Transition
Clinical research company Fortrea Holdings (NASDAQ:FTRE) fell short of the market's revenue expectations in Q1 CY2025, with sales falling 1.6% year on year to $651.3 million. Its non-GAAP profit of $0.02 per share was significantly above analysts' consensus estimates. Is now the time to buy FTRE? Find out in our full research report (it's free). Revenue: $651.3 million (1.6% year-on-year decline) Adjusted EPS: $0.02 vs analyst estimates of -$0.07 (significant beat) Adjusted Operating Income: $16.43 million vs analyst estimates of $12.79 million (2.5% margin, 28.5% beat) EBITDA guidance for the full year is $185 million at the midpoint, above analyst estimates of $172.7 million Operating Margin: -79.9%, down from -5.6% in the same quarter last year Market Capitalization: $419.2 million Fortrea's first quarter results were shaped by ongoing transformation efforts and the lingering effects of late-stage clinical service bookings prior to the company's spin-off. CEO Tom Pike attributed the modest revenue decline to a project mix weighted toward longer-duration oncology studies and delays in biotech project startups. Management also pointed to improved operational execution following the divestiture of the Enabling Services business and the exit from transition service agreements. CFO Jill McConnell highlighted that direct personnel costs were reduced significantly through an 8% reduction in permanent headcount, helping offset some revenue softness. However, general and administrative expenses increased due to investments needed to support Fortrea as a standalone public company. Looking ahead, Fortrea's leadership is focused on returning to revenue growth and expanding margins amid a challenging funding environment for biotech customers. Management reaffirmed annual guidance and expects that operating cash flow will improve as invoicing disruptions from the ERP system transition resolve. Interim CEO Peter Neupert, succeeding Tom Pike as part of a planned leadership transition, emphasized the company's commitment to cost optimization and operational efficiency. Jill McConnell noted that ongoing margin improvement will depend on capturing targeted cost reductions and accelerating project burn rates, particularly in biotech and oncology. Management cautioned that macroeconomic and policy uncertainties, as well as delays in customer decision-making, could impact the pace of new business wins. Management attributed the softer revenue to project mix and slower biotech decision-making, while emphasizing progress on cost controls and operational independence post-spin. Oncology Project Mix Impact: The company's revenue burn rate was affected by a portfolio heavily weighted toward oncology trials, which typically progress more slowly due to study complexity, longer durations, and recruitment challenges. Biotech Startup Delays: Decision-making delays among biotech clients, driven by funding uncertainties and a more cautious regulatory environment, contributed to slower project initiations. Management noted these delays have not resulted in cancellations but have extended proposal timeframes. Operational Independence Achieved: Following the exit from transition service agreements tied to its former parent, Fortrea completed significant IT and personnel restructuring. The company reduced permanent headcount by 8% year over year and consolidated its systems and office footprint, supporting early cost savings. Cost Reduction Initiatives: Management detailed $150 million in targeted gross cost reductions for 2025, focusing on both operations and SG&A (selling, general, and administrative expenses). Early progress includes reduced IT spend, a streamlined application portfolio, and facility optimizations. AI and Technology Investments: Fortrea is deploying artificial intelligence tools, including Microsoft Copilot, to enhance productivity in areas such as protocol reviews and commercial workflows. These initiatives are expected to improve efficiency and reduce costs, though management acknowledged that human oversight remains essential due to regulatory requirements. Fortrea's outlook hinges on cost discipline, pipeline execution, and customer funding dynamics, particularly in biotech and oncology segments. Margin Expansion Focus: Management expects that margin gains will be driven by the realization of targeted cost reductions, including further SG&A optimization and increased project burn rates. The timing of savings is weighted toward the second half of the year as restructuring and automation initiatives reach full impact. Biotech Market Uncertainty: The company's ability to restart revenue growth depends on timely customer decision-making and improved funding access for biotech clients. Management cited a growing pipeline, but delays in biotech project starts remain a key risk to near-term growth. Competitive Pricing and Project Mix: Fortrea aims to maintain pricing discipline in a competitive environment, especially as larger contract research organizations (CROs) increase their focus on biotech. The current portfolio's mix of longer-duration and late-stage projects, particularly in oncology, is expected to moderate the pace of backlog conversion and revenue recognition. Looking forward, key items to watch include (1) the pace of new project starts, particularly in biotech and oncology; (2) the company's ability to realize its targeted cost reductions and improve SG&A efficiency; and (3) stabilization of cash flow and reduction of days sales outstanding following the ERP transition. Execution on commercial pipeline conversion and further technology-driven productivity gains will also be key markers of progress. Fortrea currently trades at a forward P/E ratio of 9×. At this valuation, is it a buy or sell post earnings? The answer lies in our full research report (it's free). Market indices reached historic highs following Donald Trump's presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth. While this has caused many investors to adopt a "fearful" wait-and-see approach, we're leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
20-05-2025
- Politics
- Yahoo
Western Massachusetts population drops as state numbers rise
CHICOPEE, Mass. (WWLP) – New state census data is showing most cities and towns have grown in population over the past year, but that's not necessarily true for communities here in western Massachusetts. List of Massachusetts agencies impacted by federal funding cuts by Trump Administration The estimates show that about four in five Bay State cities and towns had more residents on July 1, 2024, than a year earlier, fueling a nearly one percent statewide population growth. Most of the communities that lost population are here in western Massachusetts. Most of western Massachusetts is in orange, which means population decreased, alongside the blue increases in the eastern part of the state. It's mostly affecting Franklin, Hampshire, and Berkshire counties. While most of these communities are so small, the difference is just a few people, it's still an alarming trend. All of the towns and cities in Hampden County did go up. The town of Pelham in Hampshire County seems to be an outlier. It had a population increase of 5.6 percent, but in a town of just over 1,300, that's an increase of just 71 people. Data shows thousands of people continue to leave Massachusetts for other states, but incoming immigrants have made up for it. The UMass Donahue Institute said the Bay State experienced its largest annual population increase in 60 years from 2023-2024. WWLP-22News, an NBC affiliate, began broadcasting in March 1953 to provide local news, network, syndicated, and local programming to western Massachusetts. Watch the 22News Digital Edition weekdays at 4 p.m. on Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
Hindustan Times
15-05-2025
- Business
- Hindustan Times
Wholesale inflation at 13-month low
India's wholesale inflation, as measured by the Wholesale Price Index (WPI), fell to the lowest in 13-months at 0.9% in April, a sharp fall from 2.1% in March, according to data released by the Ministry of Commerce and Industry on Wednesday. On a month-on-month basis, the WPI contracted by 0.2%, making it the sixth consecutive month that the index has sequentially contracted. April's WPI print was lower than a projection of 1.5% by a Bloomberg poll of economists. A disaggregated analysis of the WPI data shows that wholesale inflation fell mainly on account of a deflation in the primary articles subcategory – it has a 22% share in the overall WPI basket – which includes both food items and crude oil. This sub-head contracted on an annual basis for the first time since June 2023. A deflation in food articles, specifically vegetables, was what pulled down inflation in the primary articles category. Among primary food articles, pulses and vegetables contracted by 5.6% and 18.3%, respectively. Inflation in cereals also eased to 3.8% from 5.5% in March. Disinflation in crude petroleum and natural gas doubled as the subcategory contracted by 15.6% compared to 7.6% in March. This is the eighth straight month that this subcategory has been in disinflation. 'Crude oil prices have generally remained in the USD60-65/ barrel handle in April, with downward pressure arising from OPEC+ announcing production increases. This could likely add further downside to the WPI sub-index, alongside continued favourable base effects', Aastha Gudwani, India Chief Economist, Barclays said in a note. Inflation in the fuel and power category contracted by 2.2% in April 2025. This had seen an expansion of 0.2% in March after being in disinflation for seven consecutive months. Inflation in manufactured products, which has the highest weightage of 64.2% in the index, fell to 2.6% from 3.07% in March. Within manufactured products, inflation decreased in both food and non-food products. In manufactured food products, which comprise 14% of the basket of manufactured products, inflation fell to 9.4% from 10.8% in March. In non-food manufactured products, April inflation was 1.3%, down from 1.6% in March. As inflation in both primary food articles and manufactured food items fell, inflation in the overall food group also eased to 2.6% in April 2025 from 4.7% in March. The fall in WPI comes after Tuesday's retail inflation data which fell to a six-year low in April on account of falling food and vegetable prices, increasing prospects of a rate cut in the next RBI Monetary Policy Committee meeting.
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Business Standard
14-05-2025
- Business
- Business Standard
Wholesale price inflation drops to 13 -month low of 0.85% in April
India's wholesale price index (WPI)-based inflation dipped to a 13-month low of 0.85 per cent in April from 2.05 per cent in March, driven by a decline in food and fuel and power prices. The price rise also decelerated in the manufactured products category during the month, which has a weight of 64.2 per cent in the index, data released by the Ministry of Commerce and Industry on Wednesday showed. Data showed that the prices of primary food articles (-0.86 per cent) witnessed deflation after a gap of 27 months. This was led by the sharpest decline in vegetable prices (-18.26 per cent) since October 2023 and the steepest fall in pulses prices (-5.6 per cent) since October 2018. Potato prices declined further (-24.3 per cent), while protein-rich items like eggs, meat and fish (-0.29 per cent) saw a price drop for the first time since October 2024. The easing food inflation is expected to bring relief to households and boost consumption demand as the new financial year begins. Rahul Agrawal, senior economist at ICRA Ratings, said wholesale food price inflation is expected to soften further in May, aided by a favourable base and relatively moderate wholesale prices of essential food items so far this month. Fuel and power prices declined by 2.2 per cent in April due to a deceleration in global commodity prices, especially of mineral oils, leading to a fall in the prices of kerosene, air turbine fuel and petrol. The prices of both petrol (-7.7 per cent) and high speed diesel (-5.04 per cent) continued to decline for the 11th and 24th consecutive month, respectively. The price of cooking gas also dipped (-0.41 per cent) for the first time since April 2024. Among manufactured products, prices for cement, lime and plaster remained in deflation (-1.42 per cent) for the 16th month in a row, while prices for basic metals dipped (-0.64 per cent) due to a fall in global prices during the month. Meanwhile, the price rise for other major manufactured goods like textiles (0.52 per cent), apparel (0.65 per cent), paper and paper products (2.1 per cent), pharmaceuticals (0.98 per cent), semi-finished steel (0.25 per cent) and food products (9.51 per cent) also decelerated. However, the price rise for manufactured vegetable and animal oils, despite slowing, remained in double digits (28.7 per cent) during April. ALSO READ: Paras Jasrai, associate director at India Ratings and Research, noted that the declining trend in manufactured products was broad-based, with core inflation also moderating after six consecutive months of increase. It stood at a three-month low of 1.3 per cent in April due to a decline in base metal prices. 'The temporary lowering of tariffs by the US and China helps in controlling the heightened uncertainty and volatility. Muted commodity prices along with a favourable base effect for the food segment would keep wholesale inflation around 0.5 per cent in the near term,' he added. The drop in factory gate inflation for April comes a day after India's retail inflation also moderated to a nearly six-year low of 3.16 per cent, aided by a double-digit fall in vegetable prices and the steepest decline in pulses prices in over six years. 'This dual disinflation offers a substantial macroeconomic tailwind, with the pricing environment favourable for rural consumption recovery. This strengthens the case for future rate cuts — a move that will lower borrowing costs, revive capex appetite among companies and offer rate-sensitive sectors a timely boost,' said Mahendra Patil, managing partner, MP Financial Services.
Yahoo
29-04-2025
- Business
- Yahoo
Smead Value Fund's Strategic Move: Millrose Properties Inc. Takes Center Stage
Warning! GuruFocus has detected 4 Warning Signs with SPG. Smead Value Fund (Trades, Portfolio) recently submitted its N-PORT filing for the first quarter of 2025, shedding light on its strategic investment decisions during this period. Smead Capital Management, the adviser to the Smead Value Fund (Trades, Portfolio), caters to a diverse clientele, including individuals, advisors, family offices, and institutions worldwide. The fund primarily invests in U.S. large-cap companies and offers various share classes, including Investor Share Class (SMVLX) and A Share Class (SVFAX), among others. Managed by Lead Portfolio Manager Bill Smead and Co-Portfolio Manager Cole Smead, CFA, the fund aims for long-term capital appreciation through concentrated positions, typically holding 25-30 companies. Smead's investment philosophy focuses on eight criteria, including economic need, competitive advantage, profitability, and shareholder-friendly management. Smead Value Fund (Trades, Portfolio) added a total of one stock to its portfolio this quarter: The most significant addition was Millrose Properties Inc (NYSE:MRP), with 1,081,478 shares, accounting for 0.46% of the portfolio and a total value of $24.72 million. Smead Value Fund (Trades, Portfolio) also increased its stakes in one stock: The most notable increase was in Merck & Co Inc (NYSE:MRK), with an additional 139,193 shares, bringing the total to 3,034,166 shares. This adjustment represents a significant 4.81% increase in share count, a 0.24% impact on the current portfolio, with a total value of $279.90 million. Smead Value Fund (Trades, Portfolio) reduced its position in 27 stocks. The most significant changes include: Reduced Simon Property Group Inc (NYSE:SPG) by 117,876 shares, resulting in a -5.25% decrease in shares and a -0.36% impact on the portfolio. The stock traded at an average price of $177.83 during the quarter and has returned -8.62% over the past 3 months and -6.81% year-to-date. Reduced Lennar Corp (NYSE:LEN) by 119,929 shares, resulting in a -5.25% reduction in shares and a -0.35% impact on the portfolio. The stock traded at an average price of $131.81 during the quarter and has returned -19.83% over the past 3 months and -13.61% year-to-date. As of the first quarter of 2025, Smead Value Fund (Trades, Portfolio)'s portfolio included 30 stocks. The top holdings were 7.41% in Simon Property Group Inc (NYSE:SPG), 6.3% in American Express Co (NYSE:AXP), 5.6% in Macerich Co (NYSE:MAC), 5.49% in Amgen Inc (NASDAQ:AMGN), and 5.24% in Merck & Co Inc (NYSE:MRK). The holdings are mainly concentrated in 9 of the 11 industries: Financial Services, Energy, Consumer Cyclical, Real Estate, Healthcare, Consumer Defensive, Industrials, Technology, and Communication Services. This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein. This article first appeared on GuruFocus. Sign in to access your portfolio
