Latest news with #ThomasPike
Business Wire
06-06-2025
- Business
- Business Wire
Deadline Alert: Fortrea Holdings Inc. (FTRE) Investors Who Lost Money Urged To Contact Glancy Prongay & Murray LLP About Securities Fraud Lawsuit
LOS ANGELES--(BUSINESS WIRE)-- Glancy Prongay & Murray LLP reminds investors of the upcoming August 1, 2025 deadline to file a lead plaintiff motion in the class action filed on behalf of investors who purchased or otherwise acquired Fortrea Holdings Inc. ('Fortrea' or the 'Company') (NASDAQ: FTRE) securities between , inclusive (the 'Class Period'). IF YOU SUFFERED A LOSS ON YOUR FORTREA INVESTMENTS, CLICK HERE TO INQUIRE ABOUT POTENTIALLY PURSUING CLAIMS TO RECOVER YOUR LOSS UNDER THE FEDERAL SECURITIES LAWS. What Happened? On September 25, 2024, the investment bank Jefferies downgraded Fortrea from buy to hold, citing perceived weaknesses in the Company's business model as a contract research organization ('CRO') amid pressure on biotechnology funding and that the cost savings Fortrea expects to achieve by existing transition services agreements ('TSAs') are 'not as material as one might think.' On this news, Fortrea's stock price fell $2.73, or 12.3%, to close at $19.48 per share on September 25, 2024, thereby injuring investors. Then, on December 6, 2024, Baird Equity Research stated that '[g]iven our ongoing concerns around the sector, [Fortrea's] choppy history post spin, and lack of clarity on the abrupt communications course change, we cannot recommend an actionable investment (buy or sell)[.]' On this news, Fortrea's stock price fell $1.90, or 8.1%, to close at $21.67 per share on December 6, 2024. Then, on March 3, 2025, before the market opened, Fortrea announced financial results for the fourth quarter and full year 2024, revealing the Company had missed its previously announced guidance for revenue and adjusted EBITDA for the full year 2024. The Company's financial results revealed full year adjusted EBITDA of $202.5 million, well below the Company's previously announced guidance of $220 million to $240 million. The Company also revealed full year revenue of $2.696 billion, which missed previously announced guidance of $2.7 billion to $2.725 billion. The Company further revealed financial guidance for the full year 2025, which projected declines in revenue and adjusted EBITDA, with revenues of $2.450 billion to $2.550 billion and adjusted EBITDA in the range of $170 million to $200 million. Thomas Pike ('Pike'), the Company's then-Chief Executive Officer ('CEO'), explained that 'full-service work for projects from the pre-spin period,' 'have less revenue and less profitability' and 'post-spin work is not coming on fast enough to offset the pre-spin contract economics.' Pike further revealed 'this older versus newer mix issue will continue to negatively impact our financial performance during 2025.' On this news, Fortrea shares fell $3.47, or 25.1%, to close at $10.38 per share on March 3, 2025, thereby injuring investors further. What Is The Lawsuit About? The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company's business, operations, and prospects. Specifically, Defendants failed to disclose to investors that: (1) Fortrea overestimated the amount of revenue the Pre-Spin Projects were likely to contribute to the Company's 2025 earnings; (2) Fortrea overstated the cost savings it would likely achieve by exiting the TSAs; (3) as a result, the Company's previously announced EBITDA targets for 2025 were inflated; (4) accordingly, the viability of the Company's post-Spin-Off business model, as well as its business and/or financial prospects, were overstated; and (5) as a result, Defendants' positive statements about the Company's business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times. If you purchased or otherwise acquired Fortrea securities during the Class Period, you may move the Court no later than August 1, 2025 to request appointment as lead plaintiff in this putative class action lawsuit. Contact Us To Participate or Learn More: If you wish to learn more about this action, or if you have any questions concerning this announcement or your rights or interests with respect to these matters, please contact us: Charles Linehan, Esq., Glancy Prongay & Murray LLP, 1925 Century Park East, Suite 2100, Los Angeles California 90067 Email: shareholders@ Telephone: 310-201-9150, Toll-Free: 888-773-9224 Visit our website at Follow us for updates on LinkedIn, Twitter, or Facebook. If you inquire by email, please include your mailing address, telephone number and number of shares purchased. To be a member of the class action you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the class action. This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.
Business Wire
04-06-2025
- Business
- Business Wire
Glancy Prongay & Murray LLP, a Leading Securities Fraud Law Firm Encourages Fortrea Holdings Inc. (FTRE) Investors To Inquire About Securities Fraud Class Action
LOS ANGELES--(BUSINESS WIRE)-- Glancy Prongay & Murray LLP, a leading national shareholder rights law firm, announces that a securities fraud class action lawsuit has been filed on behalf of investors who purchased or otherwise acquired Fortrea Holdings Inc. ('Fortrea' or the 'Company') (NASDAQ: FTRE) securities between , inclusive (the 'Class Period'). Fortrea investors have until August 1, 2025 to file a lead plaintiff motion. What Happened? On September 25, 2024, the investment bank Jefferies downgraded Fortrea from buy to hold, citing perceived weaknesses in the Company's business model as a contract research organization ('CRO') amid pressure on biotechnology funding and that the cost savings Fortrea expects to achieve by existing transition services agreements ('TSAs') are 'not as material as one might think.' On this news, Fortrea's stock price fell $2.73, or 12.3%, to close at $19.48 per share on September 25, 2024, thereby injuring investors. Then, on December 6, 2024, Baird Equity Research stated that '[g]iven our ongoing concerns around the sector, [Fortrea's] choppy history post spin, and lack of clarity on the abrupt communications course change, we cannot recommend an actionable investment (buy or sell)[.]' On this news, Fortrea's stock price fell $1.90, or 8.1%, to close at $21.67 per share on December 6, 2024. Then, on March 3, 2025, before the market opened, Fortrea announced financial results for the fourth quarter and full year 2024, revealing the Company had missed its previously announced guidance for revenue and adjusted EBITDA for the full year 2024. The Company's financial results revealed full year adjusted EBITDA of $202.5 million, well below the Company's previously announced guidance of $220 million to $240 million. The Company also revealed full year revenue of $2.696 billion, which missed previously announced guidance of $2.7 billion to $2.725 billion. The Company further revealed financial guidance for the full year 2025, which projected declines in revenue and adjusted EBITDA, with revenues of $2.450 billion to $2.550 billion and adjusted EBITDA in the range of $170 million to $200 million. Thomas Pike ('Pike'), the Company's then-Chief Executive Officer ('CEO'), explained that 'full-service work for projects from the pre-spin period,' 'have less revenue and less profitability' and 'post-spin work is not coming on fast enough to offset the pre-spin contract economics.' Pike further revealed 'this older versus newer mix issue will continue to negatively impact our financial performance during 2025.' On this news, Fortrea shares fell $3.47, or 25.1%, to close at $10.38 per share on March 3, 2025, thereby injuring investors further. What Is The Lawsuit About? The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company's business, operations, and prospects. Specifically, Defendants failed to disclose to investors that: (1) Fortrea overestimated the amount of revenue the Pre-Spin Projects were likely to contribute to the Company's 2025 earnings; (2) Fortrea overstated the cost savings it would likely achieve by exiting the TSAs; (3) as a result, the Company's previously announced EBITDA targets for 2025 were inflated; (4) accordingly, the viability of the Company's post-Spin-Off business model, as well as its business and/or financial prospects, were overstated; and (5) as a result, Defendants' positive statements about the Company's business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times. If you purchased or otherwise acquired Fortrea securities during the Class Period, you may move the Court no later than August 1, 2025 to request appointment as lead plaintiff in this putative class action lawsuit. Contact Us To Participate or Learn More: If you wish to learn more about this action, or if you have any questions concerning this announcement or your rights or interests with respect to these matters, please contact us: Charles Linehan, Esq., Glancy Prongay & Murray LLP, 1925 Century Park East, Suite 2100, Los Angeles California 90067 Email: shareholders@ Telephone: 310-201-9150, Toll-Free: 888-773-9224 Visit our website at Follow us for updates on LinkedIn, Twitter, or Facebook. If you inquire by email, please include your mailing address, telephone number and number of shares purchased. To be a member of the Class you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the Class. This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.
Business Wire
04-06-2025
- Business
- Business Wire
Law Offices of Frank R. Cruz Encourages Fortrea Holdings Inc. (FTRE) Investors To Inquire About Securities Fraud Class Action
LOS ANGELES--(BUSINESS WIRE)-- The Law Offices of Frank R. Cruz announces that a class action lawsuit has been filed on behalf of investors who purchased Fortrea Holdings Inc. ('Fortrea' or the 'Company') (NASDAQ: FTRE) securities between , inclusive (the 'Class Period'). Fortrea investors have until August 1, 2025 to file a lead plaintiff motion. Law Offices of Frank R. Cruz Encourages Fortrea Holdings Inc. (FTRE) Investors To Inquire About Securities Fraud Class Action Share IF YOU SUFFERED A LOSS ON YOUR FORTREA HOLDINGS INC. (FTRE) INVESTMENTS, CLICK HERE TO SUBMIT A CLAIM TO POTENTIALLY RECOVER YOUR LOSSES IN THE ONGOING SECURITIES FRAUD LAWSUIT. You can also contact the Law Offices of Frank R. Cruz to discuss your legal rights by email at info@ by telephone at (310) 914-5007, or visit our website at What Happened? On September 25, 2024, the investment bank Jefferies downgraded Fortrea from buy to hold, citing perceived weaknesses in the Company's business model as a contract research organization ('CRO') amid pressure on biotechnology funding and that the cost savings Fortrea expects to achieve by existing transition services agreements ('TSAs') are 'not as material as one might think.' On this news, Fortrea's stock price fell $2.73, or 12.3%, to close at $19.48 per share on September 25, 2024, thereby injuring investors. Then, on December 6, 2024, Baird Equity Research stated that '[g]iven our ongoing concerns around the sector, [Fortrea's] choppy history post spin, and lack of clarity on the abrupt communications course change, we cannot recommend an actionable investment (buy or sell)[.]' On this news, Fortrea's stock price fell $1.90, or 8.1%, to close at $21.67 per share on December 6, 2024. Then, on March 3, 2025, before the market opened, Fortrea announced financial results for the fourth quarter and full year 2024, revealing the Company had missed its previously announced guidance for revenue and adjusted EBITDA for the full year 2024. The Company's financial results revealed full year adjusted EBITDA of $202.5 million, well below the Company's previously announced guidance of $220 million to $240 million. The Company also revealed full year revenue of $2.696 billion, which missed previously announced guidance of $2.7 billion to $2.725 billion. The Company further revealed financial guidance for the full year 2025, which projected declines in revenue and adjusted EBITDA, with revenues of $2.450 billion to $2.550 billion and adjusted EBITDA in the range of $170 million to $200 million. Thomas Pike ('Pike'), the Company's then-Chief Executive Officer ('CEO'), explained that 'full-service work for projects from the pre-spin period,' 'have less revenue and less profitability' and 'post-spin work is not coming on fast enough to offset the pre-spin contract economics.' Pike further revealed 'this older versus newer mix issue will continue to negatively impact our financial performance during 2025.' On this news, Fortrea shares fell $3.47, or 25.1%, to close at $10.38 per share on March 3, 2025, thereby injuring investors further. What Is The Lawsuit About? The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company's business, operations, and prospects. Specifically, Defendants failed to disclose to investors that: (1) Fortrea overestimated the amount of revenue the Pre-Spin Projects were likely to contribute to the Company's 2025 earnings; (2) Fortrea overstated the cost savings it would likely achieve by exiting the TSAs; (3) as a result, the Company's previously announced EBITDA targets for 2025 were inflated; (4) accordingly, the viability of the Company's post-Spin-Off business model, as well as its business and/or financial prospects, were overstated; and (5) as a result, Defendants' positive statements about the Company's business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times. If you purchased Fortrea securities, wish to learn more about this action, or have any questions concerning this announcement or your rights or interests with respect to these matters, please click HERE or contact us at: This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.
Yahoo
12-05-2025
- Business
- Yahoo
Why Fortrea (FTRE) Stock Is Falling Today
Shares of clinical research company Fortrea Holdings (NASDAQ:FTRE) fell 14.3% in the afternoon session after the company reported first quarter 2025 earnings as the news of the CEO stepping down dominated, casting a shadow over the otherwise decent results. The company announced that Lead Independent Director, Peter M. Neupert, will serve as Interim Chief Executive Officer and Board Chair, as Thomas Pike stepped down from his role beginning May 13, 2025. This likely created some uncertainty regarding the near-term direction of the business, which investors typically react negatively to. Also, sales slipped a bit compared to the previous year. Still, Fortrea blew past analysts' sales and earnings forecasts. Zooming out, we think this quarter featured some important positives marred by the uncertainty of leadership. The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Fortrea? Access our full analysis report here, it's free. Fortrea's shares are extremely volatile and have had 41 moves greater than 5% over the last year. But moves this big are rare even for Fortrea and indicate this news significantly impacted the market's perception of the business. The biggest move we wrote about over the last year was 2 months ago when the stock dropped 18.5% on the news that the company delivered weak fourth-quarter 2024 results, with sales, operating profits, and earnings all falling short of Wall Street's expectations. Not exactly the kind of report investors like to see. But if there's a silver lining, it's the book-to-bill ratio of 1.35x which means demand for future orders is still strong, even though current revenues took a hit. Profitability didn't fare much better. Adjusted EBITDA fell, due to higher restructuring costs and rising expenses. That led to a bigger operating loss compared to last year, which is why earnings came in weaker than expected. And to top it off, the company issued weaker-than-expected full-year revenue and EBITDA guidance, suggesting those future orders might not translate into sales and profits as fast as expected. Management did say that the company is shifting from a restructuring phase to a transformation strategy, which suggests there is a plan to accelerate growth. So while this quarter was a tough one, the demand trends suggest there could be better days ahead if they can execute on their strategy. Fortrea is down 70.5% since the beginning of the year, and at $5.50 per share, it is trading 80.9% below its 52-week high of $28.84 from May 2024. Investors who bought $1,000 worth of Fortrea's shares at the IPO in June 2023 would now be looking at an investment worth $182.72. Today's young investors likely haven't read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
12-05-2025
- Business
- Yahoo
Fortrea's (NASDAQ:FTRE) Q1: Strong Sales, Full-Year Outlook Slightly Exceeds Expectations
Clinical research company Fortrea Holdings (NASDAQ:FTRE) beat Wall Street's revenue expectations in Q1 CY2025, but sales fell by 1.6% year on year to $651.3 million. The company's full-year revenue guidance of $2.5 billion at the midpoint came in 0.7% above analysts' estimates. Its non-GAAP profit of $0.02 per share was significantly above analysts' consensus estimates. Is now the time to buy Fortrea? Find out in our full research report. CEO Thomas Pike is stepping down Revenue: $651.3 million vs analyst estimates of $608 million (1.6% year-on-year decline, 7.1% beat) Adjusted EPS: $0.02 vs analyst estimates of -$0.07 (significant beat) Adjusted EBITDA: $205.7 million vs analyst estimates of $22.14 million (31.6% margin, significant beat) The company reconfirmed its revenue guidance for the full year of $2.5 billion at the midpoint EBITDA guidance for the full year is $185 million at the midpoint, above analyst estimates of $172.7 million Operating Margin: -79.9%, down from -5.6% in the same quarter last year Free Cash Flow was -$127.1 million compared to -$34.9 million in the same quarter last year Market Capitalization: $556.8 million 'Fortrea's first quarter performance represents a solid start to 2025,' said Tom Pike, Chairman and CEO of Fortrea. Spun off from Labcorp in 2023 to focus exclusively on clinical research services, Fortrea (NASDAQ:FTRE) is a contract research organization that helps pharmaceutical, biotech, and medical device companies develop and bring their products to market through clinical trials and support services. Reviewing a company's long-term sales performance reveals insights into its quality. Any business can experience short-term success, but top-performing ones enjoy sustained growth for years. Over the last three years, Fortrea's demand was weak and its revenue declined by 4.4% per year. This was below our standards and is a sign of poor business quality. Long-term growth is the most important, but within healthcare, a stretched historical view may miss new innovations or demand cycles. Fortrea's recent performance shows its demand remained suppressed as its revenue has declined by 5.6% annually over the last two years. This quarter, Fortrea's revenue fell by 1.6% year on year to $651.3 million but beat Wall Street's estimates by 7.1%. Looking ahead, sell-side analysts expect revenue to decline by 7.3% over the next 12 months, a slight deceleration versus the last two years. This projection is underwhelming and suggests its products and services will see some demand headwinds. Today's young investors likely haven't read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next. Fortrea's high expenses have contributed to an average operating margin of negative 2.4% over the last four years. Unprofitable healthcare companies require extra attention because they could get caught swimming naked when the tide goes out. It's hard to trust that the business can endure a full cycle. Looking at the trend in its profitability, Fortrea's operating margin decreased by 27.9 percentage points over the last four years. This performance was caused by more recent speed bumps as the company's margin fell by 31.2 percentage points on a two-year basis. We're disappointed in these results because it shows its expenses were rising and it couldn't pass those costs onto its customers. This quarter, Fortrea generated a negative 79.9% operating margin. The company's consistent lack of profits raise a flag. We track the change in earnings per share (EPS) for the same reason as long-term revenue growth. Compared to revenue, however, EPS highlights whether a company's growth is profitable. Sadly for Fortrea, its EPS declined by 45.7% annually over the last three years, more than its revenue. This tells us the company struggled because its fixed cost base made it difficult to adjust to shrinking demand. In Q1, Fortrea reported EPS at $0.02, up from negative $0.05 in the same quarter last year. This print easily cleared analysts' estimates, and shareholders should be content with the results. Over the next 12 months, Wall Street expects Fortrea's full-year EPS of $0.41 to grow 27.3%. We were impressed by how significantly Fortrea blew past analysts' EPS expectations this quarter. We were also excited its revenue outperformed Wall Street's estimates by a wide margin. Zooming out, we think this quarter featured some important positives. Still, news of the CEO stepping down dominated, and shares traded down 2.4% to $6.01 immediately after reporting. Is Fortrea an attractive investment opportunity right now? We think that the latest quarter is just one piece of the longer-term business quality puzzle. Quality, when combined with valuation, can help determine if the stock is a buy. We cover that in our actionable full research report which you can read here, it's free.
