Core Viewpoint - Fortrea Holdings Inc. reported quarterly earnings of $0.18 per share, missing the Zacks Consensus Estimate of $0.36 per share, representing a 50% earnings surprise [1] - The company has consistently failed to surpass consensus EPS estimates over the last four quarters [2] Financial Performance - Fortrea Holdings Inc. posted revenues of $697 million for the quarter ended December 2024, missing the Zacks Consensus Estimate by 0.63%, and down from $775.4 million year-over-year [2] - The company has only topped consensus revenue estimates once in the last four quarters [2] Stock Performance - Fortrea Holdings Inc. shares have declined approximately 25.7% since the beginning of the year, while the S&P 500 has gained 1.2% [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating expected underperformance in the near future [6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.22 on revenues of $659.7 million, and for the current fiscal year, it is $1.28 on revenues of $2.72 billion [7] - The trend of estimate revisions for Fortrea Holdings Inc. has been unfavorable leading up to the earnings release [6] Industry Context - The Medical - Biomedical and Genetics industry, to which Fortrea Holdings Inc. belongs, is currently in the top 28% of over 250 Zacks industries, suggesting a favorable industry outlook [8] - Research indicates that the top 50% of Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1 [8]

Revenue Performance - Fourth quarter revenue was $697.0 million, a decrease of 1.9% from $709.7 million in Q4 2023[3] - Full year revenue for 2024 was $2,696.4 million, down 5.1% from $2,842.5 million in 2023[5] Net Loss and Earnings - Fourth quarter GAAP net loss was $(73.9) million, compared to a loss of $(48.6) million in Q4 2023, resulting in a diluted loss per share of $(0.82)[3] - Full year GAAP net loss was $(271.5) million, significantly higher than the $(31.7) million loss in 2023, with a diluted loss per share of $(3.03)[5] - Net income loss for the twelve months ended December 31, 2024, was $328.5 million, compared to a loss of $25.2 million in 2023, representing a significant increase in losses[24] Adjusted EBITDA - Adjusted EBITDA for Q4 2024 was $56.0 million, down from $58.9 million in Q4 2023[3] - Full year adjusted EBITDA was $202.5 million, compared to $245.8 million in 2023, reflecting a decrease of 17.6%[5] - Adjusted EBITDA from continuing operations for the twelve months ended December 31, 2024, was $202.5 million, down from $245.8 million in 2023, a decrease of about 17.6%[25] Cash and Debt Position - Cash and cash equivalents were $118.5 million, with gross debt of $1,142.0 million as of December 31, 2024[8] - Cash and cash equivalents increased to $118.5 million at the end of December 2024, up from $108.6 million at the end of December 2023, an increase of approximately 8.7%[24] Assets and Liabilities - Total assets decreased from $4,332.6 million in December 2023 to $3,579.2 million in December 2024, a decline of approximately 17.4%[22] - Total current liabilities rose from $778.4 million in December 2023 to $949.5 million in December 2024, an increase of about 21.9%[22] Impairments and Charges - The company recorded $24.0 million in goodwill and other asset impairments during the twelve months ended December 31, 2024[24] - Restructuring and other charges amounted to $51.2 million for the twelve months ended December 31, 2024, compared to $23.8 million in 2023, indicating increased restructuring efforts[25] Future Guidance - The company targets 2025 revenues in the range of $2,450 million to $2,550 million, with adjusted EBITDA guidance of $170 million to $200 million[9] - The company expects to complete its restructuring plan to reduce overcapacity by the end of 2025, with $21.3 million recorded in the fourth quarter related to this plan[26] Cash Flow and Investments - Proceeds from the sale of business amounted to $276.6 million in 2024, contributing positively to cash flows from investing activities[24] - Net cash provided by operating activities for the twelve months ended December 31, 2024, was $262.8 million[37] - Capital expenditures for the same period amounted to $25.5 million[37] - Free cash flow for the twelve months ended December 31, 2024, was $237.3 million[37] Operational Independence - The company has largely exited its Transition Services Agreement with its former parent company, enhancing operational independence[2]

Core Insights - Fortrea reported a GAAP net loss of $(73.9) million for Q4 2024, compared to a loss of $(48.6) million in Q4 2023, indicating a decline in profitability [3][10] - The company's full-year revenue for 2024 was $2,696.4 million, down from $2,842.5 million in 2023, reflecting a decrease in overall sales [5][10] - Fortrea's book-to-bill ratio for Q4 2024 was 1.35x, showing strong demand for its services [4][10] Financial Performance - Q4 2024 revenue was $697.0 million, a decrease from $709.7 million in Q4 2023 [3][10] - Full-year 2024 adjusted EBITDA was $202.5 million, down from $245.8 million in 2023 [5][10] - The trailing twelve-month book-to-bill ratio was 1.16x, with a backlog of $7,699 million as of December 31, 2024 [6][10] Cash Flow and Debt - As of December 31, 2024, the company had cash and cash equivalents of $118.5 million and gross debt of $1,142.0 million [7][10] - Operating cash flow for the full year was $262.8 million, with free cash flow of $237.3 million [7][10] 2025 Financial Guidance - For 2025, Fortrea targets revenues between $2,450 million and $2,550 million, with adjusted EBITDA guidance of $170 million to $200 million [8][10]

Core Points - Fortrea sponsors the SCRS Collaborate Forward working group to enhance collaboration and improve clinical trial efficiency [1][2] - The working group consists of 16 leading Global Impact Partner organizations focused on reducing administrative burdens in clinical research [1][2] - The initiative aims to optimize internal processes, promote sustainability in clinical research institutions, and enhance patient experiences [1][2] Company Overview - Fortrea is a leading global provider of clinical development solutions in the life sciences sector, collaborating with biopharmaceutical, biotechnology, medical device, and diagnostic companies [5] - The company offers management services for Phase I to IV clinical trials, clinical pharmacology, and consulting services, leveraging over 30 years of experience across more than 20 therapeutic areas [5] - Fortrea operates in approximately 100 countries with a diverse team, providing targeted and flexible solutions to global clients [5] Industry Context - The clinical trial landscape is becoming increasingly complex, necessitating innovation to ensure patient safety and streamline processes [2] - The Collaborate Forward working group will focus initially on startup research, sharing success stories and data-driven insights to demonstrate the benefits of collaboration [2] - SCRS invites sponsors and CROs committed to sustainable research practices to contribute to a more efficient and collaborative clinical research environment [3]

Group 1 - Fortrea sponsors the SCRS Collaborate Forward working group to enhance collaboration and efficiency in clinical trials [1][3] - The working group consists of 16 Global Impact Partner organizations focused on reducing administrative burdens in clinical research [2] - The initiative aims to improve internal processes, making clinical research sites more sustainable and trials more efficient [2][4] Group 2 - Fortrea's involvement signifies a commitment to industry-wide innovation and prioritizing clinical research sites in trial planning [3][4] - The Collaborate Forward group will initially focus on study startup, sharing success stories and data-driven insights [4] - SCRS encourages other sponsors and CROs to join the effort for a more effective clinical research landscape [5] Group 3 - The Society for Clinical Research Sites (SCRS) represents over 11,000 research sites globally, advocating for site-focused initiatives [6] - Fortrea provides comprehensive clinical development solutions across various therapeutic areas, emphasizing its role in healthcare innovation [7][8]

Core Insights - Pomerantz LLP is investigating claims on behalf of investors of Fortrea Holdings Inc. regarding potential securities fraud or unlawful business practices [1] - Fortrea's stock has experienced significant declines following downgrades from Jefferies and Baird due to concerns over its business model and abrupt cancellations of scheduled conferences [2][3] Group 1: Company Performance - On September 25, 2024, Jefferies downgraded Fortrea, leading to a stock price drop of $2.73 per share, or 12.29%, closing at $19.48 per share [2] - On December 6, 2024, Baird downgraded Fortrea to neutral from outperform, resulting in a stock price decline of $1.90 per share, or 8.06%, closing at $21.67 per share [3] Group 2: Legal Investigation - Pomerantz LLP is recognized for its expertise in corporate, securities, and antitrust class litigation, and is currently investigating Fortrea for potential securities fraud [1][4]

Company Overview - Fortrea (Nasdaq: FTRE) is a leading global contract research organization (CRO) that provides clinical development solutions to the life sciences industry [3] - The company partners with biopharmaceutical, biotechnology, medical device, and diagnostic companies to accelerate healthcare innovation and deliver life-changing therapies to patients [3] - Fortrea offers services including phase I-IV clinical trial management, clinical pharmacology, and consulting, leveraging over 30 years of experience across more than 20 therapeutic areas [3] Financial Results Announcement - Fortrea will release its fourth quarter and full year 2024 financial results on March 3, 2025, before the market opens [1] - A conference call will be held at 9:00 am ET on the same day to review the financial results and conduct a Q&A session [1][2] Participation Details - Participants can register for the earnings call online at the Fortrea Investor Relations website and are advised to join at least 10 minutes early to avoid delays [2] - A replay of the conference call will be available shortly after the event on the Fortrea Investor Relations website [2]

Group 1 - The article highlights that while investors are focused on tech stocks in 2024, the healthcare sector is also experiencing significant innovation [1] - There is a suggestion that the healthcare industry may offer comparable investment opportunities as the tech sector, despite being overlooked [1] Group 2 - The author has a beneficial long position in the shares of FRTE, indicating a personal investment interest in the stock [1] - The article emphasizes the author's experience and success in the stock market, with an average stock return of over 31% from previous articles [2]

DURHAM, N.C., Nov. 26, 2024 (GLOBE NEWSWIRE) -- Fortrea (Nasdaq: FTRE), a leading global contract research organization (CRO), today announced that Chairman and Chief Executive Officer, Tom Pike and Chief Financial Officer, Jill McConnell will present at the Citi Global Healthcare Conference on Wednesday, December 4, 2024 at 1:45 pm ET. The live webcast will be available to investors and other interested parties by accessing the Fortrea Investor Relations website. A webcast replay will be available after th ...

Core Viewpoint - Fortrea, a leading global contract research organization, is set to present at the Evercore HealthCONx Conference on December 5, 2024, highlighting its role in clinical development solutions for the life sciences industry [1]. Company Overview - Fortrea (Nasdaq: FTRE) specializes in providing clinical development solutions to the life sciences sector, partnering with biopharmaceutical, biotechnology, medical device, and diagnostic companies to enhance healthcare innovation [3]. - The company offers a range of services including phase I-IV clinical trial management, clinical pharmacology, and consulting, leveraging over 30 years of experience across more than 20 therapeutic areas [3]. - Fortrea operates in approximately 100 countries, emphasizing a strong investigator site network and a commitment to scientific rigor and exceptional insights [3].