FA Earnings Prediction
The chart below shows how FA performed 10 days before and after its earnings report, based on data from the past quarters. Typically, FA sees a +0.62% change in stock price 10 days leading up to the earnings, and a +1.09% change 10 days following the report. On the earnings day itself, the stock moves by +3.81%. This data can give you a slight idea of what to expect for the next quarter's release.
FA Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
199.12M
-0.62%
7.90%
Gross Margin
34.19%
2.95%
1.39%
Operating Margin
12.24%
-11.11%
8.90%
Net Margin
-4.45%
-182.71%
-540.59%
EPS
-0.06
-185.71%
-700.00%
No Data Available
FA Earnings Analysis
First Advantage Corporation Common Stock Corporation (FA.O) Earnings Conference Call
Positive
Acquisition Announcement: We are thrilled to have closed our $2.2 billion acquisition of Sterling on October 31, what a tremendous opportunity for all of us.
Revenue and EBITDA Overview: On an LTM basis, as of September 30, 2024, we have combined revenues of approximately $1.5 billion and adjusted EBITDA of approximately $407 million or $457 million to $477 million, including our targeted run rate synergies of $50 million to $70 million, which we expect to action within two years post-closing.
New Logo and Branding: We have unveiled our new logo and branding for our unified company, which you will see in our presentation materials today.
Strong Financial Performance: We delivered another quarter of strong financial performance, maintaining our fully year 2024 First Advantage stand-alone guidance ranges and providing new combined company guidance.
Revenue and EBITDA Projections: We expect total revenues in the range of $858 million to $918 million and adjusted EBITDA of $250 million to $274 million.
Negative
Stagnant Adjusted EBITDA: Adjusted EBITDA of $64 million was roughly the same as in the prior year, indicating stagnation in profitability despite a sequential increase of $8.2 million or 15% over Q2.
EBITDA Margin Improvement: Adjusted EBITDA margin improved sequentially by 200 basis points to 32.2%, but this was still below expectations, reflecting ongoing challenges in cost management.
Adjusted EBITDA Decline: Legacy Sterling results for the third quarter showed an adjusted EBITDA of $45.3 million, down $2.3 million versus the prior year comparable quarter, indicating a decline in operational efficiency.
Americas Segment Performance: The Americas segment was roughly flat as base growth was lower than anticipated, primarily due to a later start and normal holiday hiring, which negatively impacted revenue generation.
Earnings Decline Concerns: Overall, adjusted diluted earnings per share was $0.26, reflecting a decline in profitability and raising concerns about future earnings potential.
FA FAQs
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FA Earning Call Sentiment
First Advantage Corporation (FA) Q3 2024 Earnings Call Transcript
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FA.O
-1.21%Positive
The earnings call summary and Q&A reveal a positive sentiment overall. The company shows strong financial performance with sequential revenue growth, high retention rates, and a positive outlook on synergies from the acquisition. The Q&A section clarifies concerns about customer attrition and hiring trends, maintaining a stable outlook. The company's strategic plans, including AI integration and cost synergies, also add to the positive sentiment. Despite some vague responses in the Q&A, the overall guidance and strategic moves suggest a positive stock price movement.
