Contract research organization Fortrea beats Q3 revenue expectations, raises 2025 guidance

Fortrea Holdings

05/11/2025 11:36

Overview

Fortrea Q3 revenue of $701.3 mln beats analyst expectations

Adjusted EBITDA for Q3 beats estimates at $50.7 mln

Outlook

Fortrea raises 2025 revenue guidance to $2,700 mln-$2,750 mln

Company narrows 2025 adjusted EBITDA guidance to $175 mln-$195 mln

Guidance assumes foreign exchange rates as of Dec 31, 2024, remain stable

Result Drivers

REVENUE GROWTH - Q3 revenue increased to $701.3 mln from $674.9 mln in Q3 2024, indicating growth in demand

COST SAVINGS - Cost-saving initiatives remain on track, contributing to financial performance

STRONG DEMAND - Book-to-bill ratio of 1.13x indicates strong demand for services

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
Beat
$701.30 mln
$645.70 mln (8 Analysts)
Q3 EPS
-$0.17
Q3 Net Income
-$15.90 mln
Q3 Adjusted EBITDA
Beat
$50.70 mln
$47 mln (8 Analysts)
Q3 Operating Income
-$8.60 mln


Analyst Coverage

The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 8 "hold" and 2 "sell" or "strong sell"

The average consensus recommendation for the biotechnology & medical research peer group is "buy."

Wall Street's median 12-month price target for Fortrea Holdings Inc is $8.50, about 14.1% below its November 4 closing price of $9.70

The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 9 three months ago

Press Release: ID:nGNXbJYdJ8

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)