Fortrea (NASDAQ:FTRE) Posts Earnings Results, Beats Estimates By $0.13 EPS

Fortrea (NASDAQ:FTRE) released its quarterly earnings data on Tuesday. The company reported $0.16 EPS for the quarter, topping analysts’ consensus estimates of $0.03 by $0.13, FiscalAI reports. Fortrea had a negative net margin of 16.50% and a positive return on equity of 9.51%. The company had revenue of $636.50 million during the quarter, compared to the consensus estimate of $628.51 million.

Here are the key takeaways from Fortrea’s conference call:

• Fortrea reported a solid Q1 with adjusted EBITDA of $47M, improved adjusted net income ($15.2M) and reiterated full?year guidance of $2.55B–$2.65B revenue and $190M–$220M adjusted EBITDA, supporting the company’s path back to profitability.
• Commercial momentum improved: Q1 book?to?bill was 1.15x (1.05x TTM), with stronger biotech wins, more RFPs (including new?to?Fortrea biotechs), and double?digit growth in the China pipeline.
• Management launched Fortrea Intelligent Technology (FIT), an AI/ML platform integrated into Xcellerate, receiving positive early feedback but described as “early days” with uncertain near?term financial impact.
• Rightsizing produced ~$16M gross (~$9M net) of quarterly savings and management reiterated a multi?year target to reach mid?teens adjusted EBITDA margin over 3–5 years, driven by cost optimization and revenue diversification.
• Cash and liquidity improved materially: Q1 operating cash flow was negative $17M (much better than prior year) and available liquidity exceeds $0.5B, with no revolver usage in the quarter.

Fortrea Price Performance

Shares of NASDAQ:FTRE traded down $0.07 during trading on Thursday, reaching $15.57. The stock had a trading volume of 1,634,919 shares, compared to its average volume of 1,600,326. The stock has a market capitalization of $1.47 billion, a PE ratio of -3.17, a P/E/G ratio of 0.54 and a beta of 1.92. Fortrea has a 52 week low of $3.97 and a 52 week high of $18.67. The business’s 50-day moving average price is $10.04 and its 200 day moving average price is $12.54. The company has a debt-to-equity ratio of 1.98, a current ratio of 0.95 and a quick ratio of 0.98.

Insider Transactions at Fortrea

In other Fortrea news, CFO Jill G. Mcconnell sold 5,061 shares of Fortrea stock in a transaction on Tuesday, March 10th. The stock was sold at an average price of $9.07, for a total value of $45,903.27. Following the completion of the transaction, the chief financial officer owned 69,796 shares in the company, valued at approximately $633,049.72. The trade was a 6.76% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. In the last ninety days, insiders sold 9,673 shares of company stock valued at $92,242. Insiders own 0.38% of the company’s stock.

Institutional Trading of Fortrea

A number of hedge funds and other institutional investors have recently made changes to their positions in the business. Royal Bank of Canada lifted its position in Fortrea by 48.9% during the 1st quarter. Royal Bank of Canada now owns 121,707 shares of the company’s stock worth $920,000 after buying an additional 39,944 shares in the last quarter. Caxton Associates LLP acquired a new stake in Fortrea in the 1st quarter valued at about $196,000. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC raised its stake in shares of Fortrea by 10.9% in the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 282,780 shares of the company’s stock worth $2,135,000 after acquiring an additional 27,746 shares during the last quarter. Focus Partners Wealth acquired a new position in shares of Fortrea during the first quarter worth approximately $80,000. Finally, Acadian Asset Management LLC bought a new stake in shares of Fortrea during the first quarter valued at approximately $65,000.

Analyst Ratings Changes

Several research analysts recently issued reports on FTRE shares. Truist Financial set a $19.00 price target on shares of Fortrea in a research report on Wednesday. Citigroup upped their price objective on Fortrea from $16.00 to $20.00 and gave the company a “buy” rating in a research note on Wednesday. TD Cowen reissued a “buy” rating on shares of Fortrea in a report on Wednesday. Barclays boosted their price target on Fortrea from $11.00 to $16.00 and gave the company an “equal weight” rating in a research note on Wednesday. Finally, Weiss Ratings reiterated a “sell (d-)” rating on shares of Fortrea in a research report on Tuesday, April 21st. Five analysts have rated the stock with a Buy rating, six have given a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, the company presently has a consensus rating of “Hold” and an average price target of $16.32.

Fortrea Company Profile

Fortrea, Inc is a global contract development and manufacturing organization (CDMO) that provides integrated solutions for pharmaceutical and biotechnology companies. Established as a spin-off from Thermo Fisher Scientific’s Pharma Services business in October 2023, Fortrea leverages a legacy of scientific expertise and manufacturing scale to support drug development from early-stage research through commercial production. The company’s comprehensive offerings address the complex needs of both small-molecule and biologics programs, making it a single source for clients seeking to accelerate timelines and manage costs.

Fortrea’s core services encompass analytical and formulation development, process optimization, clinical and commercial manufacturing, and packaging services.