Latest news with #FortreaHoldings
Business Wire
8 hours ago
- Business
- Business Wire
Rosen Law Firm Urges Fortrea Holdings, Inc. (NASDAQ: FTRE) Stockholders With Large Losses to Contact the Firm for Information About Their Rights
For more information, submit a form, email attorney Phillip Kim, or give us a call at 866-767-3653. The Allegations: Rosen Law Firm is Investigating the Allegations that Fortrea Holdings, Inc. (NASDAQ: FTRE) Misled Investors Regarding its Business Operations. According to the lawsuit, throughout the Class Period, defendants made false and misleading statements and/or failed to disclose that: (1) Fortrea overestimated the amount of revenue the Pre-Spin Projects were likely to contribute to Fortrea's 2025 earnings; (2) Fortrea overstated the cost savings it would likely achieve by exiting the transition service agreements ('TSAs'); (3) as a result, Fortrea's previously announced EBITDA targets for 2025 were inflated; (4) accordingly, the viability of Fortrea's post-Spin-Off business model, as well as its business and/or financial prospects, were overstated; and (5) as a result, Fortrea's public statements were materially false and misleading at all relevant times. When the true details entered the market, the lawsuit claims that investors suffered damages. What Now: You may be eligible to participate in the class action against Fortrea Holdings, Inc. Shareholders who want to serve as lead plaintiff for the class must file their motions with the court by August 1, 2025. A lead plaintiff is a representative party who acts on behalf of other class members in directing the litigation. You do not have to participate in the case to be eligible for a recovery. If you choose to take no action, you can remain an absent class member. For more information, click here. All representation is on a contingency fee basis. Shareholders pay no fees or expenses. About Rosen Law Firm: Some law firms issuing releases about this matter do not actually litigate securities class actions. Rosen Law Firm does. Rosen Law Firm is a recognized leader in shareholder rights litigation, dedicated to helping shareholders recover losses, improving corporate governance structures, and holding company executives accountable for their wrongdoing. Since its inception, Rosen Law Firm has obtained over $1 billion for shareholders. Follow us for updates on LinkedIn: on Twitter: or on Facebook: Attorney Advertising. Prior results do not guarantee a similar outcome.
Yahoo
12-05-2025
- Business
- Yahoo
Why Fortrea (FTRE) Stock Is Falling Today
Shares of clinical research company Fortrea Holdings (NASDAQ:FTRE) fell 14.3% in the afternoon session after the company reported first quarter 2025 earnings as the news of the CEO stepping down dominated, casting a shadow over the otherwise decent results. The company announced that Lead Independent Director, Peter M. Neupert, will serve as Interim Chief Executive Officer and Board Chair, as Thomas Pike stepped down from his role beginning May 13, 2025. This likely created some uncertainty regarding the near-term direction of the business, which investors typically react negatively to. Also, sales slipped a bit compared to the previous year. Still, Fortrea blew past analysts' sales and earnings forecasts. Zooming out, we think this quarter featured some important positives marred by the uncertainty of leadership. The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Fortrea? Access our full analysis report here, it's free. Fortrea's shares are extremely volatile and have had 41 moves greater than 5% over the last year. But moves this big are rare even for Fortrea and indicate this news significantly impacted the market's perception of the business. The biggest move we wrote about over the last year was 2 months ago when the stock dropped 18.5% on the news that the company delivered weak fourth-quarter 2024 results, with sales, operating profits, and earnings all falling short of Wall Street's expectations. Not exactly the kind of report investors like to see. But if there's a silver lining, it's the book-to-bill ratio of 1.35x which means demand for future orders is still strong, even though current revenues took a hit. Profitability didn't fare much better. Adjusted EBITDA fell, due to higher restructuring costs and rising expenses. That led to a bigger operating loss compared to last year, which is why earnings came in weaker than expected. And to top it off, the company issued weaker-than-expected full-year revenue and EBITDA guidance, suggesting those future orders might not translate into sales and profits as fast as expected. Management did say that the company is shifting from a restructuring phase to a transformation strategy, which suggests there is a plan to accelerate growth. So while this quarter was a tough one, the demand trends suggest there could be better days ahead if they can execute on their strategy. Fortrea is down 70.5% since the beginning of the year, and at $5.50 per share, it is trading 80.9% below its 52-week high of $28.84 from May 2024. Investors who bought $1,000 worth of Fortrea's shares at the IPO in June 2023 would now be looking at an investment worth $182.72. Today's young investors likely haven't read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next. 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
12-05-2025
- Business
- Yahoo
Fortrea's (NASDAQ:FTRE) Q1: Strong Sales, Full-Year Outlook Slightly Exceeds Expectations
Clinical research company Fortrea Holdings (NASDAQ:FTRE) beat Wall Street's revenue expectations in Q1 CY2025, but sales fell by 1.6% year on year to $651.3 million. The company's full-year revenue guidance of $2.5 billion at the midpoint came in 0.7% above analysts' estimates. Its non-GAAP profit of $0.02 per share was significantly above analysts' consensus estimates. Is now the time to buy Fortrea? Find out in our full research report. CEO Thomas Pike is stepping down Revenue: $651.3 million vs analyst estimates of $608 million (1.6% year-on-year decline, 7.1% beat) Adjusted EPS: $0.02 vs analyst estimates of -$0.07 (significant beat) Adjusted EBITDA: $205.7 million vs analyst estimates of $22.14 million (31.6% margin, significant beat) The company reconfirmed its revenue guidance for the full year of $2.5 billion at the midpoint 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 Free Cash Flow was -$127.1 million compared to -$34.9 million in the same quarter last year Market Capitalization: $556.8 million 'Fortrea's first quarter performance represents a solid start to 2025,' said Tom Pike, Chairman and CEO of Fortrea. 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. Reviewing a company's long-term sales performance reveals insights into its quality. Any business can experience short-term success, but top-performing ones enjoy sustained growth for years. Over the last three years, Fortrea's demand was weak and its revenue declined by 4.4% per year. This was below our standards and is a sign of poor business quality. Long-term growth is the most important, but within healthcare, a stretched historical view may miss new innovations or demand cycles. Fortrea's recent performance shows its demand remained suppressed as its revenue has declined by 5.6% annually over the last two years. This quarter, Fortrea's revenue fell by 1.6% year on year to $651.3 million but beat Wall Street's estimates by 7.1%. Looking ahead, sell-side analysts expect revenue to decline by 7.3% over the next 12 months, a slight deceleration versus the last two years. This projection is underwhelming and suggests its products and services will see some demand headwinds. Today's young investors likely haven't read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next. Fortrea's high expenses have contributed to an average operating margin of negative 2.4% over the last four years. Unprofitable healthcare companies require extra attention because they could get caught swimming naked when the tide goes out. It's hard to trust that the business can endure a full cycle. Looking at the trend in its profitability, Fortrea's operating margin decreased by 27.9 percentage points over the last four years. This performance was caused by more recent speed bumps as the company's margin fell by 31.2 percentage points on a two-year basis. We're disappointed in these results because it shows its expenses were rising and it couldn't pass those costs onto its customers. This quarter, Fortrea generated a negative 79.9% operating margin. The company's consistent lack of profits raise a flag. We track the change in earnings per share (EPS) for the same reason as long-term revenue growth. Compared to revenue, however, EPS highlights whether a company's growth is profitable. Sadly for Fortrea, its EPS declined by 45.7% annually over the last three years, more than its revenue. This tells us the company struggled because its fixed cost base made it difficult to adjust to shrinking demand. In Q1, Fortrea reported EPS at $0.02, up from negative $0.05 in the same quarter last year. This print easily cleared analysts' estimates, and shareholders should be content with the results. Over the next 12 months, Wall Street expects Fortrea's full-year EPS of $0.41 to grow 27.3%. We were impressed by how significantly Fortrea blew past analysts' EPS expectations this quarter. We were also excited its revenue outperformed Wall Street's estimates by a wide margin. Zooming out, we think this quarter featured some important positives. Still, news of the CEO stepping down dominated, and shares traded down 2.4% to $6.01 immediately after reporting. Is Fortrea an attractive investment opportunity right now? We think that the latest quarter is just one piece of the longer-term business quality puzzle. Quality, when combined with valuation, can help determine if the stock is a buy. We cover that in our actionable full research report which you can read here, it's free.
