Fortrea Holdings's Earnings: A Preview

Fortrea Holdings FTRE is gearing up to announce its quarterly earnings on Friday, 2024-11-08. Here's a quick overview of what investors should know before the release.

Analysts are estimating that Fortrea Holdings will report an earnings per share (EPS) of $0.26.

The announcement from Fortrea Holdings is eagerly anticipated, with investors seeking news of surpassing estimates and favorable guidance for the next quarter.

It's worth noting for new investors that guidance can be a key determinant of stock price movements.

Earnings Track Record

Last quarter the company missed EPS by $0.12, which was followed by a 10.88% increase in the share price the next day.

Here's a look at Fortrea Holdings's past performance and the resulting price change:

Tracking Fortrea Holdings's Stock Performance

Shares of Fortrea Holdings were trading at $18.09 as of November 06. Over the last 52-week period, shares are down 35.48%. Given that these returns are generally negative, long-term shareholders are likely unhappy going into this earnings release.

Analyst Observations about Fortrea Holdings

For investors, staying informed about market sentiments and expectations in the industry is paramount. This analysis provides an exploration of the latest insights on Fortrea Holdings.

Fortrea Holdings has received a total of 11 ratings from analysts, with the consensus rating as Neutral. With an average one-year price target of $22.91, the consensus suggests a potential 26.64% upside.

Comparing Ratings Among Industry Peers

This comparison focuses on the analyst ratings and average 1-year price targets of 10x Genomics, BioLife Solns and Maravai LifeSciences, three major players in the industry, shedding light on their relative performance expectations and market positioning.

• For 10x Genomics, analysts project an Outperform trajectory, with an average 1-year price target of $24.75, indicating a potential 36.82% upside.
• For BioLife Solns, analysts project an Buy trajectory, with an average 1-year price target of $29.0, indicating a potential 60.31% upside.
• The prevailing sentiment among analysts is an Neutral trajectory for Maravai LifeSciences, with an average 1-year price target of $10.5, implying a potential 41.96% downside.

Peers Comparative Analysis Summary

In the peer analysis summary, key metrics for 10x Genomics, BioLife Solns and Maravai LifeSciences are highlighted, providing an understanding of their respective standings within the industry and offering insights into their market positions and comparative performance.

Key Takeaway:

Fortrea Holdings ranks at the bottom for Revenue Growth and Gross Profit among its peers. It is also at the bottom for Return on Equity. Overall, Fortrea Holdings is positioned lower compared to its peers in terms of financial performance metrics.

Get to Know Fortrea Holdings Better

Fortrea Holdings is a late-stage contract research organization, or CRO, that provides comprehensive Phase I through IV clinical trial management, clinical pharmacology, and patient access solutions. The company works with emerging and large biopharma, medical device, and diagnostic companies to run their clinical trials as a functional-service provider, full-service provider, and offers hybrid trials. In 2023, Fortrea was formed as an independent, publicly traded company after Labcorp spun off its clinical development business, which it acquired via its purchase of Covance in 2015 for $6.1 billion. Fortrea has 19,000 staff members across 90 countries.

Fortrea Holdings's Economic Impact: An Analysis

Market Capitalization Perspectives: The company's market capitalization falls below industry averages, signaling a relatively smaller size compared to peers. This positioning may be influenced by factors such as perceived growth potential or operational scale.

Revenue Challenges: Fortrea Holdings's revenue growth over 3 months faced difficulties. As of 30 June, 2024, the company experienced a decline of approximately -8.65%. This indicates a decrease in top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Health Care sector.

Net Margin: Fortrea Holdings's net margin is below industry averages, indicating potential challenges in maintaining strong profitability. With a net margin of -20.89%, the company may face hurdles in effective cost management.

Return on Equity (ROE): The company's ROE is below industry benchmarks, signaling potential difficulties in efficiently using equity capital. With an ROE of -9.07%, the company may need to address challenges in generating satisfactory returns for shareholders.

Return on Assets (ROA): Fortrea Holdings's ROA falls below industry averages, indicating challenges in efficiently utilizing assets. With an ROA of -3.55%, the company may face hurdles in generating optimal returns from its assets.

Debt Management: Fortrea Holdings's debt-to-equity ratio is below the industry average. With a ratio of 0.82, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

To track all earnings releases for Fortrea Holdings visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.