Clinical research company Fortrea Holdings (NASDAQ:FTRE) will be announcing earnings results this Wednesday morning. Here’s what to look for.
Fortrea beat analysts’ revenue expectations last quarter, reporting revenues of $636.5 million, down 2.3% year on year. It was a strong quarter for the company, with a beat of analysts’ EPS estimates and full-year EBITDA guidance topping analysts’ expectations.
Is Fortrea a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Fortrea’s revenue to decline 8.8% year on year, a reversal from the 7.2% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Fortrea has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Fortrea’s peers in the life sciences tools & services segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Medpace delivered year-on-year revenue growth of 17.2%, beating analysts’ expectations by 2.6%, and West Pharmaceutical Services reported revenues up 13.8%, topping estimates by 3.5%. Medpace traded up 14.7% following the results while West Pharmaceutical Services was down 8.5%.
Read our full analysis of Medpace’s results here and West Pharmaceutical Services’s results here.
Investors in the life sciences tools & services segment have had steady hands going into earnings, with share prices up 1.9% on average over the last month. Fortrea is up 9.2% during the same time and is heading into earnings with an average analyst price target of $17.25 (compared to the current share price of $19.13).
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