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Should You Buy Labcorp Holdings Inc. (NYSE:LH) For Its Upcoming Dividend?
Should You Buy Labcorp Holdings Inc. (NYSE:LH) For Its Upcoming Dividend?

Yahoo

time6 days ago

  • Business
  • Yahoo

Should You Buy Labcorp Holdings Inc. (NYSE:LH) For Its Upcoming Dividend?

Labcorp Holdings Inc. (NYSE:LH) stock is about to trade ex-dividend in 3 days. The ex-dividend date occurs one day before the record date, which is the day on which shareholders need to be on the company's books in order to receive a dividend. The ex-dividend date is important because any transaction on a stock needs to have been settled before the record date in order to be eligible for a dividend. Therefore, if you purchase Labcorp Holdings' shares on or after the 29th of May, you won't be eligible to receive the dividend, when it is paid on the 11th of June. The company's next dividend payment will be US$0.72 per share, and in the last 12 months, the company paid a total of US$2.88 per share. Looking at the last 12 months of distributions, Labcorp Holdings has a trailing yield of approximately 1.2% on its current stock price of US$242.53. Dividends are an important source of income to many shareholders, but the health of the business is crucial to maintaining those dividends. That's why we should always check whether the dividend payments appear sustainable, and if the company is growing. Our free stock report includes 1 warning sign investors should be aware of before investing in Labcorp Holdings. Read for free now. Dividends are typically paid from company earnings. If a company pays more in dividends than it earned in profit, then the dividend could be unsustainable. Fortunately Labcorp Holdings's payout ratio is modest, at just 33% of profit. That said, even highly profitable companies sometimes might not generate enough cash to pay the dividend, which is why we should always check if the dividend is covered by cash flow. The good news is it paid out just 21% of its free cash flow in the last year. It's encouraging to see that the dividend is covered by both profit and cash flow. This generally suggests the dividend is sustainable, as long as earnings don't drop precipitously. See our latest analysis for Labcorp Holdings Click here to see the company's payout ratio, plus analyst estimates of its future dividends. Stocks with flat earnings can still be attractive dividend payers, but it is important to be more conservative with your approach and demand a greater margin for safety when it comes to dividend sustainability. If earnings fall far enough, the company could be forced to cut its dividend. It's not encouraging to see that Labcorp Holdings's earnings are effectively flat over the past five years. It's better than seeing them drop, certainly, but over the long term, all of the best dividend stocks are able to meaningfully grow their earnings per share. Recent growth has not been impressive. However, companies that see their growth slow can often choose to pay out a greater percentage of earnings to shareholders, which could see the dividend continue to rise. Another key way to measure a company's dividend prospects is by measuring its historical rate of dividend growth. Labcorp Holdings's dividend payments are broadly unchanged compared to where they were three years ago. Is Labcorp Holdings an attractive dividend stock, or better left on the shelf? Earnings per share have been flat over this time, but we're intrigued to see that Labcorp Holdings is paying out less than half its earnings and cash flow as dividends. This is interesting for a few reasons, as it suggests management may be reinvesting heavily in the business, but it also provides room to increase the dividend in time. We would prefer to see earnings growing faster, but the best dividend stocks over the long term typically combine strong earnings per share growth with a low payout ratio, and Labcorp Holdings is halfway there. There's a lot to like about Labcorp Holdings, and we would prioritise taking a closer look at it. In light of that, while Labcorp Holdings has an appealing dividend, it's worth knowing the risks involved with this stock. Our analysis shows 1 warning sign for Labcorp Holdings and you should be aware of it before buying any shares. A common investing mistake is buying the first interesting stock you see. Here you can find a full list of high-yield dividend stocks. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

New At-Home Blood Test Shows Risk of Developing Preeclampsia
New At-Home Blood Test Shows Risk of Developing Preeclampsia

Yahoo

time15-05-2025

  • Health
  • Yahoo

New At-Home Blood Test Shows Risk of Developing Preeclampsia

Fact checked by Sarah Scott The first and only at-home blood test that predicts a pregnant person's risk of developing preeclampsia has launched. Known as Encompass, the test from Mirvie can predict the condition months before symptoms appear, giving pregnant people time to take preventative steps. Preeclampsia, a disorder causing high blood pressure during pregnancy, is a serious condition that affects 1 in 12 pregnancies in the U.S. The World Health Organization (WHO) reports that preeclampsia is responsible for around 46,000 maternal deaths and around half a million fetal deaths worldwide each year. A test that can accurately predict preeclampsia based on a person's biology will help ensure they can get the proactive, personalized care they need, says Dallas Reed, MD, FACOG, FACMG, an OB-GYN, advisor to Mirvie, and medical geneticist. 'Before Encompass, we used personal and family history factors in combination with demographic factors to predict who may be at moderate or high risk of developing preeclampsia,' says Dr. Reed. 'Unfortunately, these guidelines put most patients in at least a moderate risk category, which was more of a one-size-fits-all approach.' According to Dr. Reed, when a pregnant person starts experiencing symptoms of preeclampsia, it's often too late to take preventive action. 'Preeclampsia is one of the most common complications in pregnancy and significantly impacts maternal and neonatal morbidity and mortality,' explains Dr. Reed. 'So not only can it be dangerous, but it can also be traumatic for pregnant people and their families.' If a pregnant person is identified as high risk with Encompass, Dr. Reed says they can work with their care team to take extra precautions, such as additional monitoring with specialists, adhering to daily low-dose aspirin, monitoring blood pressure at home, and making lifestyle changes that can reduce their risk. It allows them to create an action plan and work with their health care provider to have the healthiest pregnancy and delivery possible in their situation. 'Knowing that a patient is at high risk may also help the physician understand that their patient's nagging headache, a common pregnancy complaint and also a symptom of preeclampsia, should be taken more seriously,' explains Dr. Reed. A previous blood test to detect preeclampsia was also released from Labcorp in 2024. It's always a good idea to speak with your health care provider about your risks and if you have questions about taking any tests. Encompass is a blood test collected through an at-home visit between 18 and 22 weeks of gestational age, with no need for a trip to the lab. 'It's initially being rolled out for pregnant people who will be 35 or older at their due date with no pre-existing high-risk conditions for preeclampsia," says Dr. Reed. The test analyzes RNA from the pregnant person, placenta, and fetus to detect gene expression patterns. Higher levels of some genes suggest a higher risk of preeclampsia. For instance, the higher the level of the PAPPA2 gene, the higher the risk of preeclampsia. For those interested in being tested, you simply contact the company through its website to purchase a test. After a telehealth professional confirms eligibility, the blood test kit is mailed directly to your home. During the 18th and 22nd week of your pregnancy, you will schedule an at-home blood draw and will receive the results in about 10 to 14 days, along with a proposed action plan. You can also ask that your health care provider receive the results as well, so that they can develop a care plan if you happen to be at high risk for preeclampsia. If you are identified as high risk, Dr. Reed says an ongoing, virtual SMS-assistant is available to provide education and reminders to help reduce the risk of developing preterm preeclampsia. 'From the clinician's perspective, what I'm most excited about Encompass is how this test can identify which patients are at highest risk of pre-term preeclampsia and which patients are not,' she says. 'And this personalized risk data allows me and my practice to make sure we provide the extra support needed for someone who is at high risk, while allowing me to provide better guidance to my low-risk patients.' According to Dr. Reed, the work behind Encompass began seven years ago at Stanford University and is backed by multiple research studies. A recent study involving the preeclampsia test was able to identify how a person's biology affects their risk as well as determine the test's effectiveness. The study, which was published in Nature Communications, found that Encompass correctly identified 9 in 10 eligible pregnancies that developed preterm preeclampsia as "high risk." It also noted that those with a 'low risk' result had a 99.7% probability of not developing preeclampsia between 20 weeks and 37 weeks. Anushka Chelliah, MD, a board-certified maternal-fetal medicine specialist at Pediatrix Medical Group in Houston, who is not affiliated with Mirvie, says this test, which was formulated from the research study in Nature Communications, could potentially screen for preeclampsia in people without typical risk factors. It also suggests that this test will be a good tool for objective and molecular-based risk prediction. "It can provide early detection of preeclampsia months before symptoms, and offer options of closer surveillance and targeted interventions, which ultimately may improve outcomes,' says Dr. Chelliah. 'Ultimately, this may improve management of hypertensive disease and reduce maternal and neonatal morbidity and mortality from early-onset preeclampsia.' Preeclampsia is a serious condition that can progress to affect other organs, most commonly the liver, kidneys, and neurologic systems, says Dr. Chelliah. 'Preeclampsia typically starts after 20 weeks gestational age in a [pregnant person] who previously has no history of elevated blood pressure,' she adds. 'It is more common in the third trimester.' People with preeclampsia are at an increased risk for complications. According to Dr. Chelliah, those include stroke, cardiomyopathy, HELLP syndrome, liver failure or rupture, pulmonary edema, coagulopathy or bleeding disorders, end organ damage, or eclampsia. "There are also increased risks of fetal growth restriction, stillbirth, placental abruption, and preterm delivery," says Dr. primarily occurs in first pregnancies. However, if you had the condition in a previous pregnancy, you are seven times more likely to develop it again in a later pregnancy. Here are some other factors that can increase your risk:High blood pressure or kidney disease before pregnancy Overweight or obesity Advanced maternal age (older than 40) or under the age of 20 Twin pregnancies Being African American Family history of preeclampsia History of migraines, diabetes, or gestational diabetes Autoimmune diseases like rheumatoid arthritis, lupus, or multiple sclerosis History of PCOS or sickle cell disease Pregnancy resulting from egg donation, donor insemination, or in vitro fertilization IVF pregnanciesIf you have some of these risk factors, Dr. Chelliah suggests talking with a health care provider before pregnancy to discuss ways to reduce the risk of developing characterized by high blood pressure that usually develops after the 20th week of pregnancy, says Dr. Reed. She says other symptoms can include: A headache that doesn't resolve with acetaminophen, such as Tylenol Blurry vision or spots in the vision Sudden onset of chest pain or shortness of breath Pain in the right upper part of the abdomen, separate from the uterus 'Preeclampsia can progress rapidly and often occurs in healthy pregnancies that were otherwise progressing normally,' says Dr. Reed. 'With current guidelines, we are not adequately able to identify who is truly at risk of developing this potentially life-altering diagnosis. This is why Encompass is so important. We can finally get ahead of it by learning the risk early.' The risk of preeclampsia may be reduced with the use of low-dose aspirin, says Dr. Chelliah. 'Strategies for preeclampsia prevention also have included the study of vitamins, fish oil, and antiplatelet agents, among others," shares Dr. Chelliah. "However, per guidelines of the American College of Obstetricians and Gynecologists, for [people] at risk of preeclampsia, low-dose aspirin should be considered for prevention.' She says aspirin therapy is safe with use in the early second trimester and may reduce the risk of adverse pregnancy outcomes, including preeclampsia or recurrent preeclampsia, significantly. The issue, says Dr. Reed, is accurately identifying pregnant people who are potentially at risk for preeclampsia. Currently, health care providers look at demographic and clinical factors like age, race, BMI, socioeconomics, and personal and family history. But she says this information may be biased. 'Most [pregnant people] have at least one moderate risk factor based on guidelines from the U.S. Preventive Services Task Force and the American College of Obstetrics and Gynecology,' she says. 'That means that, with most of the patients I'm seeing, I'm having to have this conversation about preeclampsia, even though most will not develop the condition.' She says there are also missed opportunities for preventative actions with this current approach. 'The current lack of clarity surrounding preeclampsia risk doesn't just fan the flames of anxiety; it can lead to missed critical windows for prevention," says Dr. Reed. "And for a condition that can escalate so quickly, often without warning, timing is everything.' Read the original article on Parents

LH Q1 Earnings Call: Labcorp Grows Revenue but Misses Expectations, Raises Adjusted EPS Guidance
LH Q1 Earnings Call: Labcorp Grows Revenue but Misses Expectations, Raises Adjusted EPS Guidance

Yahoo

time13-05-2025

  • Business
  • Yahoo

LH Q1 Earnings Call: Labcorp Grows Revenue but Misses Expectations, Raises Adjusted EPS Guidance

Healthcare diagnostics company Labcorp Holdings (NYSE:LH) missed Wall Street's revenue expectations in Q1 CY2025, but sales rose 5.3% year on year to $3.35 billion. Its non-GAAP profit of $3.84 per share was 2.8% above analysts' consensus estimates. Is now the time to buy LH? Find out in our full research report (it's free). Revenue: $3.35 billion vs analyst estimates of $3.41 billion (5.3% year-on-year growth, 1.9% miss) Adjusted EPS: $3.84 vs analyst estimates of $3.73 (2.8% beat) Adjusted EBITDA: $560.6 million vs analyst estimates of $577.1 million (16.8% margin, 2.9% miss) Management slightly raised its full-year Adjusted EPS guidance to $16.05 at the midpoint Operating Margin: 9.7%, in line with the same quarter last year Free Cash Flow was -$107.5 million compared to -$163.6 million in the same quarter last year Organic Revenue rose 2.1% year on year, in line with the same quarter last year Market Capitalization: $21 billion Labcorp's first quarter results reflected higher demand in its core diagnostics business, as management pointed to a rebound in test volumes after weather disruptions earlier in the quarter. CEO Adam Schechter cited ongoing growth in the company's managed care contracts and successful integration of recent acquisitions as factors supporting revenue. Schechter also highlighted the launch of new tests in oncology, women's health, autoimmune disease, and neurology as helping Labcorp capture more patient volume in high-growth therapeutic areas. Looking ahead, Labcorp slightly raised its full-year adjusted EPS guidance, with management confident in margin expansion through cost savings and operational efficiencies. Julia Wang, CFO, explained that guidance now factors in potential tariff impacts and ongoing regulatory uncertainty, but benefits from the company's expense control initiatives and supply chain flexibility. Schechter emphasized the company's ability to offset rising personnel costs and external headwinds, stating, 'We think we'll be able to offset the impacts from tariffs.' Labcorp's management focused on business execution, segment momentum, and adapting to a changing regulatory and macroeconomic environment. Diagnostics volume recovery: The diagnostics segment benefitted from a rebound in test volumes after weather-related softness early in the quarter, with organic growth improving when adjusted for these headwinds. Integration of Invitae acquisition: Management reported Invitae is on track to deliver over 10% revenue growth and become slightly accretive to earnings for the full year. The integration is progressing better than anticipated, and the acquisition is seen as a key contributor to growth in high-potential areas such as oncology and women's health. New test launches and innovation: Labcorp introduced several new tests, including a liquid biopsy for personalized cancer treatment and a blood-based biomarker for Alzheimer's disease. These offerings are expected to help Labcorp expand in faster-growing therapeutic segments. Operational efficiency initiatives: The company continues to drive savings through its LaunchPad program and the rollout of digital tools, such as eClaim Assist for billing and a diagnostics assistant for providers, aimed at improving both margins and customer experience. Tariff and regulatory planning: Management discussed contingency planning for various tariff and regulatory scenarios, emphasizing that supply chain flexibility and long-term contracts with U.S. suppliers help minimize risks. The company's guidance range incorporates what it views as the most likely macroeconomic and policy scenarios. Labcorp's outlook for the remainder of the year emphasizes margin improvement, continued acquisition integration, and resilience to external pressures, with a focus on high-growth testing categories. Continued product and test expansion: Management expects new test launches, especially in oncology and neurology, to drive above-market growth. The focus is on expanding test menus that meet unmet clinical needs and attract new customer segments. Cost management and operational leverage: The LaunchPad cost savings program and adoption of digital workflow tools are anticipated to offset inflationary pressures, including rising personnel costs and potential tariff impacts. Regulatory and payer landscape: Ongoing monitoring of U.S. policy changes such as PAMA (Protecting Access to Medicare Act) and new tariffs remains a risk, but management believes that diversified payer contracts and contingency planning will support stable performance. Michael Cherny (Leerink Partners): Asked about volatility in biopharma laboratory services and the impact of regulatory changes. Management said the guidance range reflects possible study delays but has not seen significant disruptions so far. Ann Hynes (Mizuho): Inquired about the degree to which tariffs are now incorporated into guidance. CEO Adam Schechter explained that most supply contracts are U.S.-based and multi-year, so tariff exposure is limited and manageable. Erin Wright (Morgan Stanley): Sought clarity on the split between organic and acquisition-driven growth in diagnostics, as well as the impact of weather. CFO Julia Wang clarified that, adjusted for weather, organic growth was consistent with historical trends. Lisa Gill (JP Morgan): Asked about the regulatory outlook for animal testing in early development. Schechter estimated this is 10–15% of the biopharma segment's revenue and does not expect a major impact this year. Jack Meehan (Nephron Research): Pressed for details on Invitae's trajectory toward accretion. Management reported integration is proceeding well, with cost savings expected to make Invitae slightly accretive to earnings by year-end. In the coming quarters, the StockStory team will be watching (1) progress in integrating acquisitions such as Invitae and the resulting impact on margins, (2) the launch and adoption of new high-growth diagnostic tests—particularly in oncology and neurology, and (3) management's ability to offset inflationary and tariff headwinds through operational efficiency programs. The evolution of the regulatory landscape and updates on Labcorp's business development pipeline will also be important signposts for tracking the company's execution. Labcorp currently trades at a forward P/E ratio of 15.2×. Should you double down or take your chips? Find out in our free research report. 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 176% over the last five years. 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 Kadant (+351% five-year return). Find your next big winner with StockStory today.

Should Value Investors Buy Labcorp (LH) Stock?
Should Value Investors Buy Labcorp (LH) Stock?

Yahoo

time13-05-2025

  • Business
  • Yahoo

Should Value Investors Buy Labcorp (LH) Stock?

Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks. Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits. In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment. One company to watch right now is Labcorp (LH). LH is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 15.01 right now. For comparison, its industry sports an average P/E of 16.19. Over the past 52 weeks, LH's Forward P/E has been as high as 15.79 and as low as 12.57, with a median of 14.45. We also note that LH holds a PEG ratio of 1.53. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. LH's industry currently sports an average PEG of 1.73. Within the past year, LH's PEG has been as high as 1.88 and as low as 1.37, with a median of 1.62. Another notable valuation metric for LH is its P/B ratio of 2.51. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. LH's current P/B looks attractive when compared to its industry's average P/B of 4.54. LH's P/B has been as high as 2.67 and as low as 2.04, with a median of 2.36, over the past year. Finally, investors should note that LH has a P/CF ratio of 15.12. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 17.51. Over the past year, LH's P/CF has been as high as 19.65 and as low as 12.90, with a median of 17.12. Value investors will likely look at more than just these metrics, but the above data helps show that Labcorp is likely undervalued currently. And when considering the strength of its earnings outlook, LH sticks out at as one of the market's strongest value stocks. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Labcorp (LH) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research

Fortrea's (NASDAQ:FTRE) Q1: Strong Sales, Full-Year Outlook Slightly Exceeds Expectations
Fortrea's (NASDAQ:FTRE) Q1: Strong Sales, Full-Year Outlook Slightly Exceeds Expectations

Yahoo

time12-05-2025

  • 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.

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