FTRE Earnings Prediction
The chart below shows how FTRE performed 10 days before and after its earnings report, based on data from the past quarters. Typically, FTRE sees a +20.61% change in stock price 10 days leading up to the earnings, and a +0.61% change 10 days following the report. On the earnings day itself, the stock moves by -10.67%. This data can give you a slight idea of what to expect for the next quarter's release.
FTRE Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
697.00M
-10.11%
3.27%
Gross Margin
17.23%
39.51%
-8.50%
Operating Margin
-4.02%
905.00%
195.59%
Net Margin
-10.60%
128.45%
286.86%
EPS
-0.68
-65.85%
119.35%
No Data Available
FTRE Earnings Analysis
Fortrea Holdings Inc Corporation (FTRE.O) Earnings Conference Call
Positive
Book-to-Bill Performance: Strong book-to-bill ratio of 1.35 in Q4, averaging 1.2 since spin, indicating effective sales performance.
Backlog Growth Highlights Opportunities: Year-ending backlog increased to $7.7 billion, showcasing growth in business opportunities.
Phase I Clinical Sales Surge: Record sales in Phase I Clinical Pharmacology Services (CPS) during Q4, reflecting successful investments in clinic networks and capacity.
Client Relationship Strength: Significant repeat awards from major CPS customers, demonstrating strong client relationships and satisfaction.
Diverse Therapeutic Awards Success: Successful sole source awards in various therapeutic areas, including oncology and gastroenterology, highlighting diverse capabilities.
Asia Pacific Market Expansion: Strong performance in Asia Pacific with notable global study wins, indicating expanding market presence.
Transition Service Agreement Exit: Successful exit from transition service agreements (TSA) with former parent, reducing future obligations and costs.
Customer Satisfaction Improvement: Improved customer experience reflected in significantly higher net promoter scores (NPS), indicating better client satisfaction.
Net Interest Expense Reduction: Reduction in net interest expense by $12.6 million due to debt paydown, improving financial health.
Operating Cash Flow Increase: Cash flow from operating activities increased to $262.8 million, up from $168.4 million, indicating stronger operational efficiency.
Free Cash Flow Increase: Free cash flow rose to $237.3 million, compared to $128.1 million in 2023, reflecting improved cash management.
Improved Billing Efficiency: Day sales outstanding (DSO) decreased to 40 days, significantly lower than the previous year, indicating better billing and collection processes.
Cost Savings Transformation Goals: Targeted cost savings of $40 to $50 million in 2025 from transformation programs, aimed at aligning SG&A costs with industry peers.
Biotech Investment Strategy: Plans to increase investment in biotech in 2025, indicating a strategic focus on growth areas.
Operational Efficiency Enhancement: Commitment to enhancing operational efficiency and productivity through new management systems and processes.
Negative
Earnings Missed Expectations: Fortrea Holdings Inc. missed earnings expectations with reported EPS of $0.18, while expectations were $0.36, indicating a significant shortfall in profitability.
Q4 2024 Revenue Decline: Revenue for Q4 2024 was $697 million, a decline of 1.8% year-on-year, primarily due to lower late-stage clinical service revenue, which raises concerns about growth.
Revenue Decline Analysis: The full-year 2024 revenue decreased by 5.1% compared to 2023, reflecting ongoing challenges in the business and a lack of growth momentum.
Declining Adjusted EBITDA: The adjusted EBITDA for Q4 2024 was $56 million, down from $58.9 million in the prior year, and the full-year adjusted EBITDA also decreased significantly from $245.8 million in 2023 to $202.5 million in 2024, indicating declining operational efficiency.
Net Loss Increase: The net loss for Q4 2024 was $73.9 million, compared to a net loss of $48.6 million in the prior year, highlighting worsening financial performance.
Significant Net Loss Increase: Full-year 2024 net loss was $271.5 million, a substantial increase from a net loss of $31.7 million in 2023, indicating severe financial distress.
Revenue and EBITDA Outlook: The company acknowledged that their targeted revenue and adjusted EBITDA trajectories for 2025 are not in line with prior expectations, suggesting a lack of confidence in future performance.
Impact of Project Mix: The mix of pre-spin projects, which are less profitable and have longer durations, is expected to negatively impact financial performance in 2025, as they represent a larger portion of revenue than anticipated.
Biotech Project Challenges: The company is facing challenges with slower start-up in biotech projects and a soft first-half bookings in 2024, which are contributing to lower revenue targets for 2025.
Cost Reduction Charges: The restructuring programs initiated to reduce costs have resulted in a charge of $21.3 million in Q4, indicating ongoing financial strain and the need for significant operational adjustments.
FTRE FAQs
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FTRE Earning Call Sentiment
Fortrea Holdings Inc. (NASDAQ:FTRE) Q4 2024 Earnings Call Transcript
FTRE.O
-3.95%Positive
The earnings call reflects financial challenges, with declining EPS, revenue, and EBITDA, alongside a significant net loss. Despite improved cash flow and backlog growth, concerns about slow project starts, cost structure, and shareholder returns persist. Management's unclear responses in the Q&A further fuel uncertainty. The market cap suggests moderate sensitivity to these issues, leading to a likely negative stock price movement.
