NYSE$FTRE

Fortrea Holdings Inc · Q2 2024 earnings

Q2 2024 earnings · · Investor relations

Briefing

Reported financial results for the second quarter ended June 30, 2024.

Fortrea reported a revenue of $662.4 million for the second quarter of 2024. The GAAP net loss was $(99.3) million, with a diluted loss per share of $(1.11). Adjusted EBITDA stood at $55.2 million. The company revised its full-year guidance due to lower pass-through and service-fee revenues.

  • Revenues for the second quarter were $662.4 million.
  • GAAP net loss was $(99.3) million, with a loss per share of $(1.11).
  • Adjusted EBITDA was $55.2 million, reflecting a 103.7% sequential increase.
  • Book-to-bill ratio for the quarter was 0.96x, with a backlog of $7.366 billion.

Headline financials

Total Revenue

$662M

Previous: $793M-16.5%
EPS

-$1.55

Previous: $0.52-398.1%
Adjusted EBITDA

$55.2M

Previous: $72.5M-23.9%
Capital Expenditures

-$11.2M

No prior period
Free Cash Flow

-$138M

Previous: $28.3M-589.0%
Net Income

-$138M

Previous: $28.3M-589.0%
Operating Income

-$50.9M

Previous: $33.8M-250.6%
Gross Profit

-$525M

Previous: -$649M+19.1%
Cash & Equivalents

$126M

Previous: $114M+10.4%
Total Assets

$3.57B

Previous: $4.36B-18.2%
Stock-Based Comp

$15M

Previous: $9.4M+59.6%

Revenue & EPS history

Fortrea · Revenue · Quarterly

$662M

Q2 2024-16.5%vs Q2 2023
Beat estimate in 5 of 11 quarters(45%)
ActualEstimate

Forward guidance

For the full year 2024, the company is revising its revenue guidance to a range of $2,700 million to $2,750 million and adjusted EBITDA guidance to a range of $220 million to $240 million.

Headwinds

  • The reduction in revenue is primarily due to lower pass-through revenues.
  • Lower service-fee revenues in the second half as a result of lower net new business in the first half of 2024.
  • Update to the adjusted EBITDA range is driven by the lower service-fee revenues.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 15 quarterly earnings reports · overlaid with Q2 2024

Historical avgQ2 2024

+1.3%

Avg return

Earnings day

-0.8%

Avg return

5 days after

+0.5%

Avg return

30 days after

53%

8 / 15 earnings

Positive

+26.0%

Q3 2024

Best reaction

-25.1%

Q4 2024

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+18.5%+25.9%+40.5%
Q4 2025+4.9%+1.4%-12.3%
Q3 2025+23.4%+15.3%+46.8%
Q1 2025-15.6%-27.8%-11.7%
Q4 2024-25.1%-22.9%-45.8%
Q3 2024+26.0%+17.9%+20.1%
Q2 2024-11.7%-11.4%-18.4%
Q1 2023-1.9%-3.9%-9.9%
Q1 2024-12.7%-16.6%-24.8%
Q4 2021+3.0%+4.9%+2.7%
Q4 2023+3.2%+6.7%+6.0%
Q3 2022+15.1%-6.6%-4.0%
Q3 2023+15.1%+13.0%+14.1%
Q2 2022-11.3%+6.7%+9.5%
Q2 2023-11.3%-14.9%-5.9%
Q1 2022

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