Fortrea Holdings Inc (FTRE)

Fortrea Holdings Inc. (FTRE) stock declined by 14.90% following the company's announcement of soft first-quarter FY24 results and a downward revision of its revenue outlook.

• Financial Performance Overview: The company reported a revenue of $662.1 million for the quarter, missing the consensus estimate of $754.6 million. Additionally, adjusted EBITDA decreased to $29.5 million from $41.7 million compared to the previous year. Adjusted EPS also fell short, coming in at $(0.04) against the street view of $0.01.
• Cash Flow and Financial Position: Operating cash flow for the quarter was $(25.6) million, with free cash flow at $(34.9) million. As of March-end, the company had $92.8 million in cash and cash equivalents, while gross debt amounted to $1.65 billion.
• FY24 Outlook Revision: Fortrea revised its FY24 revenue guidance to $2.785 billion-$2.855 billion from $3.14 billion-$3.205 billion and adjusted EBITDA guidance to $240.0 million-$260.0 million from $280 million-$320 million. The revised outlook reflects adjustments in light of current performance and market conditions.