Clinical research company Fortrea Holdings (NASDAQ: FTRE) will be announcing earnings results this Wednesday morning. Here’s what to expect.
Fortrea beat analysts’ revenue expectations by 12% last quarter, reporting revenues of $710.3 million, up 7.2% year on year. It was a stunning quarter for the company, with a beat of analysts’ EPS estimates and an impressive beat of analysts’ revenue estimates.
Is Fortrea a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting Fortrea’s revenue to decline 3.9% year on year to $648.3 million, improving from the 5.4% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.16 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 four times over the last two years.
Looking at Fortrea’s peers in the drug development inputs & services segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Medpace delivered year-on-year revenue growth of 23.7%, beating analysts’ expectations by 2.7%, and West Pharmaceutical Services reported revenues up 7.7%, topping estimates by 2.1%. Medpace traded up 8.9% following the results while West Pharmaceutical Services was also up 7.5%.
Read our full analysis of Medpace’s results here and West Pharmaceutical Services’s results here.
Investors in the drug development inputs & services segment have had steady hands going into earnings, with share prices flat over the last month. Fortrea is up 7.6% during the same time and is heading into earnings with an average analyst price target of $9.53 (compared to the current share price of $10.32).
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