Clinical research company Fortrea Holdings (NASDAQ: FTRE) will be reporting results tomorrow before market open. Here’s what to expect.
Fortrea missed analysts’ revenue expectations by 0.9% last quarter, reporting revenues of $697 million, down 1.8% year on year. It was a disappointing quarter for the company, with full-year revenue guidance missing analysts’ expectations significantly and full-year EBITDA guidance missing analysts’ expectations significantly.
Is Fortrea a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Fortrea’s revenue to decline 8.2% year on year to $608 million, a further deceleration from the 4.6% decrease it recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.07 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Fortrea has missed Wall Street’s revenue estimates six times over the last two years.
Looking at Fortrea’s peers in the drug development inputs & services segment, some have already reported their Q1 results, giving us a hint as to what we can expect. UFP Technologies delivered year-on-year revenue growth of 41.1%, beating analysts’ expectations by 5.9%, and Charles River Laboratories reported a revenue decline of 2.7%, topping estimates by 4.6%. UFP Technologies traded up 11.4% following the results while Charles River Laboratories was also up 22.7%.
Read our full analysis of UFP Technologies’s results here and Charles River Laboratories’s results here.
Investors in the drug development inputs & services segment have had steady hands going into earnings, with share prices up 1.5% on average over the last month. Fortrea is up 16.6% during the same time and is heading into earnings with an average analyst price target of $8.21 (compared to the current share price of $6.25).
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