Fortrea rises as Q3 core profit beats estimates

Fortrea Holdings

08/11/2024 13:40

** Shares of Fortrea Holdings  FTRE.O  rise 25.1% to $22.58
premarket
    ** Contract research firm's Q3 EBITDA of $64.2 mln beats
Wall Street estimates of $61.9 mln - data compiled by LSEG 
    ** Higher bookings for services improved co's book-to-bill
ratio to 1.23x from 0.96x in Q2
    ** Co's Q3 revenue of $674.9 is in line with estimates
    ** However, FTRE's Q3 adj EPS of 23 cents is below estimates
of 25 cents
    ** Co also lowers upper end of 2024 revenue forecast to
$2.73 bln from $2.75 bln, keeping lower end at $2.7 bln 
    ** Analysts expect 2024 revenue of $2.7 bln
    ** Brokerage Evercore ISI sees the stock reacting positively
to the reported numbers and outlook
    ** EBITDA margins expanded to 9.5%, which should help to
provide some comfort in the path back to double-digit margins
starting in Q4 - Evercore 
    ** Up to last close, stock down 48.3% YTD

 (Reporting by Puyaan Singh)
 ((Puyaan.Singh@thomsonreuters.com;))