Latest news with #FTRE
Yahoo
5 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
Associated Press
6 days ago
- Business
- Associated Press
INVESTOR ALERT: Class Action Lawsuit Filed on Behalf of Fortrea Holdings, Inc. (FTRE) Investors – Holzer & Holzer, LLC Encourages Investors With Significant Losses to Contact the Firm
ATLANTA, June 03, 2025 (GLOBE NEWSWIRE) -- A shareholder class action lawsuit has been filed against Fortrea Holdings, Inc. ('Fortrea' or the 'Company') (NASDAQ: FTRE). The lawsuit alleges that Defendants made materially false and/or misleading statements and/or failed to disclose material adverse information about Fortrea's business, operations, and prospects, including allegations that: (i) Fortrea overestimated the amount of revenue the Pre-Spin Projects were likely to contribute to the Company's 2025 earnings; (ii) Fortrea overstated the cost savings it would likely achieve by exiting the transition services agreements; (iii) as a result, Fortrea's previously announced EBITDA targets for 2025 were inflated; and (iv) accordingly, the viability of the Company's post-Spin-Off business model, as well as its business and/or financial prospects, were overstated. If you purchased shares of Fortrea between July 3, 2023 and February 28, 2025, and experienced a significant loss on that investment, you are encouraged to discuss your legal rights by contacting Corey D. Holzer, Esq. at [email protected], by toll-free telephone at (888) 508-6832, or by visiting the firm's website at for more information. The deadline to ask the court to be appointed lead plaintiff in the case is August 1, 2025. Holzer & Holzer, LLC, an ISS top rated securities litigation law firm for 2021, 2022, and 2023, dedicates its practice to vigorous representation of shareholders and investors in litigation nationwide, including shareholder class action and derivative litigation. Since its founding in 2000, Holzer & Holzer attorneys have played critical roles in recovering hundreds of millions of dollars for shareholders victimized by fraud and other corporate misconduct. More information about the firm is available through its website, and upon request from the firm. Holzer & Holzer, LLC has paid for the dissemination of this promotional communication, and Corey Holzer is the attorney responsible for its content. CONTACT: Corey Holzer, Esq. (888) 508-6832 (toll-free) [email protected]
Business Wire
12-05-2025
- Business
- Business Wire
Securities Fraud Investigation Into Fortrea Holdings Inc. (FTRE) Continues – Investors Who Lost Money Urged to Contact Glancy Prongay & Murray LLP, a Leading Securities Fraud Law Firm
LOS ANGELES--(BUSINESS WIRE)-- Glancy Prongay & Murray LLP, a leading national shareholder rights law firm, continues its investigation on behalf of Fortrea Holdings Inc. ('Fortrea' or the 'Company') (NASDAQ: FTRE) investors concerning the Company's possible violations of the federal securities laws. IF YOU ARE AN INVESTOR WHO LOST MONEY ON FORTREA HOLDINGS INC. (FTRE), CLICK HERE TO INQUIRE ABOUT POTENTIALLY PURSUING CLAIMS TO RECOVER YOUR LOSS. What Happened? On March 3, 2025, Fortrea released its fourth quarter and full year 2024 financial results, revealing that projects from before the Company's spin-off from LabCorp are 'late in their life cycle have less revenue and less profitability than expected for 2025' and that 'post-spin work is not coming on fast enough to offset the pre-spin contract economics.' The Company further revealed this 'older versus newer mix issue will continue to negatively impact [the Company's] financial performance during 2025.' On this news, Fortrea's stock price fell $3.47, or 25.1%, to close at $10.38 per share on March 3, 2025, thereby injuring investors. Then, on May 12, 2025, Fortrea released its first quarter 2025 financial results, reporting a non-cash goodwill impairment charge of $488.8 million. Additionally, the Company announced that its CEO 'is stepping down from his role.' On this news, Fortrea's stock price fell $0.96, or 15.6%, to close at $5.19 per share on May 12, 2025, thereby injuring investors further. Contact Us To Participate or Learn More: If you wish to learn more about this action, or if you have any questions concerning this announcement or your rights or interests with respect to these matters, please contact us. Charles Linehan, Esq., Glancy Prongay & Murray LLP, 1925 Century Park East, Suite 2100, Los Angeles, California 90067 Email: shareholders@ Telephone: 310-201-9150 (Toll-Free: 888-773-9224) Visit our website at Follow us for updates on LinkedIn, Twitter, or Facebook. Whistleblower Notice Persons with non-public information regarding Fortrea should consider their options to aid the investigation or take advantage of the SEC Whistleblower Program. Under the program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Charles H. Linehan at 310-201-9150 or 888-773-9224 or email shareholders@ About Glancy Prongay & Murray LLP Glancy Prongay & Murray LLP ('GPM') is a premier law firm representing investors and consumers in securities litigation and other complex class action litigation. GPM has been consistently ranked in the Top 50 Securities Class Action Settlements by ISS Securities Class Action Services. In 2018, GPM was ranked a top five law firm in number of securities class action settlements, and a top six law firm for total dollar size of settlements. With four offices across the country, GPM's nearly 40 attorneys have won groundbreaking rulings and recovered billions of dollars for investors and consumers in securities, antitrust, consumer, and employment class actions. GPM's lawyers have handled cases covering a wide spectrum of corporate misconduct and relating to nearly all industries and sectors. GPM's past successes have been widely covered by leading news and industry publications such as The Wall Street Journal, The Financial Times, Bloomberg Businessweek, Reuters, the Associated Press, Barron's, Investor's Business Daily, Forbes, and Money. This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.
Yahoo
22-04-2025
- Business
- Yahoo
1 Cash-Producing Stock That Stand Out and 2 to Be Wary Of
While strong cash flow is a key indicator of stability, it doesn't always translate to superior returns. Some cash-heavy businesses struggle with inefficient spending, slowing demand, or weak competitive positioning. Not all companies are created equal, and StockStory is here to surface the ones with real upside. That said, here is one cash-producing company that reinvests wisely to drive long-term success and two that may face some trouble. Trailing 12-Month Free Cash Flow Margin: 2.6% Created to provide high-quality, affordable RVs to the post-war American family, Winnebago (NYSE:WGO) is a manufacturer of recreational vehicles, providing a range of motorhomes, travel trailers, and fifth-wheel products for outdoor and adventure lifestyles. Why Is WGO Risky? Products and services are facing significant end-market challenges during this cycle as sales have declined by 21.4% annually over the last two years Earnings per share fell by 15.2% annually over the last five years while its revenue grew, showing its incremental sales were much less profitable Diminishing returns on capital suggest its earlier profit pools are drying up At $31.09 per share, Winnebago trades at 7.1x forward price-to-earnings. If you're considering WGO for your portfolio, see our FREE research report to learn more. Trailing 12-Month Free Cash Flow Margin: 8.8% Spun off from Labcorp in 2023 to focus exclusively on clinical research services, Fortrea (NASDAQ:FTRE) is a contract research organization that helps pharmaceutical, biotech, and medical device companies develop and bring their products to market through clinical trials and support services. Why Do We Pass on FTRE? Customers postponed purchases of its products and services this cycle as its revenue declined by 6.7% annually over the last two years Earnings per share have dipped by 49.5% annually over the past three years, which is concerning because stock prices follow EPS over the long term High net-debt-to-EBITDA ratio of 5× could force the company to raise capital at unfavorable terms if market conditions deteriorate Fortrea is trading at $5.22 per share, or 4x forward price-to-earnings. Check out our free in-depth research report to learn more about why FTRE doesn't pass our bar. Trailing 12-Month Free Cash Flow Margin: 18.5% Launched by Reed Hastings as a DVD mail rental company until its famous pivot to streaming in 2007, Netflix (NASDAQ: NFLX) is a pioneering streaming content platform. Why Are We Bullish on NFLX? Has the opportunity to boost monetization through new features and premium offerings as its global streaming paid memberships have grown by 13.5% annually over the last two years Disciplined cost controls and effective management resulted in a strong two-year EBITDA margin of 27%, and its profits increased over the last few years as it scaled Free cash flow margin jumped by 18.6 percentage points over the last few years, giving the company more resources to pursue growth initiatives, repurchase shares, or pay dividends Netflix's stock price of $999.06 implies a valuation ratio of 30.5x forward EV-to-EBITDA. Is now the right time to buy? Find out in our full research report, it's free. Donald Trump's victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs. While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 175% over the last five years. Stocks that made our list in 2019 include now familiar names such as Nvidia (+2,183% between December 2019 and December 2024) as well as under-the-radar businesses like Comfort Systems (+751% five-year return). Find your next big winner with StockStory today for free. Sign in to access your portfolio
Yahoo
10-04-2025
- Business
- Yahoo
1 Oversold Stock Primed to Rebound and 2 to Approach with Caution
Hitting a new 52-week low can be a pivotal moment for any stock. These floors often mark either the beginning of a turnaround story or confirmation that a company faces serious headwinds. At StockStory, we dig beneath the surface of price movements to uncover whether a company's fundamentals justify its current valuation or suggest hidden potential. Keeping that in mind, here is one stock where you should be greedy instead of fearful and two facing legitimate challenges. One-Month Return: -5% Formerly Eldorado Resorts, Caesars Entertainment (NASDAQ:CZR) is a global gaming and hospitality company operating numerous casinos, hotels, and resort properties. Why Does CZR Give Us Pause? Scale is a double-edged sword because it limits the company's growth potential compared to its smaller competitors, as reflected in its below-average annual revenue increases of 1.9% for the last two years Earnings per share fell by 26.4% annually over the last five years while its revenue grew, showing its incremental sales were much less profitable Depletion of cash reserves could lead to a fundraising event that triggers shareholder dilution Caesars Entertainment is trading at $25.91 per share, or 25x forward price-to-earnings. To fully understand why you should be careful with CZR, check out our full research report (it's free). One-Month Return: -45.9% Spun off from Labcorp in 2023 to focus exclusively on clinical research services, Fortrea (NASDAQ:FTRE) is a contract research organization that helps pharmaceutical, biotech, and medical device companies develop and bring their products to market through clinical trials and support services. Why Do We Steer Clear of FTRE? Customers postponed purchases of its products and services this cycle as its revenue declined by 6.7% annually over the last two years Earnings per share have contracted by 49.5% annually over the last three years, a headwind for returns as stock prices often echo long-term EPS performance High net-debt-to-EBITDA ratio of 5× could force the company to raise capital at unfavorable terms if market conditions deteriorate At $5.54 per share, Fortrea trades at 4.9x forward price-to-earnings. Read our free research report to see why you should think twice about including FTRE in your portfolio, it's free. One-Month Return: -28.6% Founded in 2009, Integral Ad Science (NASDAQ:IAS) provides digital advertising verification and optimization solutions, ensuring that ads are viewable by real people in brand-safe environments across various platforms and devices. Why Does IAS Stand Out? Software platform has product-market fit given the rapid recovery of its customer acquisition costs Disciplined cost controls and effective management resulted in a strong trailing 12-month operating margin of 11.4%, and it turbocharged its profits by achieving some fixed cost leverage Strong free cash flow margin of 21.9% enables it to reinvest or return capital consistently Integral Ad Science's stock price of $7.07 implies a valuation ratio of 2.1x forward price-to-sales. Is now a good time to buy? Find out in our full research report, it's free. The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 175% over the last five years. Stocks that made our list in 2019 include now familiar names such as Nvidia (+2,183% between December 2019 and December 2024) as well as under-the-radar businesses like Comfort Systems (+751% five-year return). Find your next big winner with StockStory today for free. Sign in to access your portfolio
