Earnings to watch: Fortrea (FTRE) reports Q3 results tomorrow

Clinical research company Fortrea Holdings (NASDAQ:FTRE) will be announcing earnings results this Thursday before the bell. Here’s what to expect.

Fortrea beat analysts’ revenue expectations last quarter, reporting revenues of $678.2 million, down 4.5% year on year. It was an exceptional quarter for the company, with a beat of analysts’ EPS estimates and full-year revenue guidance beating analysts’ expectations.

Is Fortrea a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.

This quarter, the market is expecting Fortrea’s revenue to decline 4.3% year on year, a reversal from the 3.9% increase it recorded in the same quarter last year.

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Fortrea has missed Wall Street’s revenue estimates multiple times over the last two years.

Looking at Fortrea’s peers in the drug development inputs & services segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Repligen delivered year-on-year revenue growth of 10.9%, beating analysts’ expectations by 1.1%, and Medpace reported revenues up 8.5%, in line with consensus estimates. Medpace traded down 1.3% following the results.

Read our full analysis of Repligen’s results here and Medpace’s results here.

There has been positive sentiment among investors in the drug development inputs & services segment, with share prices up 3.6% on average over the last month. Fortrea is up 23.2% during the same time and is heading into earnings with an average analyst price target of $21.71 (compared to the current share price of $24.71).

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