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Shareholders will be ecstatic, with their stake up 35% over the past week following Fortrea Holdings Inc.'s (NASDAQ:FTRE) latest quarterly results. Revenues of US$675m arrived in line with expectations, although statutory losses per share were US$0.31, an impressive 48% smaller than what broker models predicted. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Fortrea Holdings after the latest results.
Check out our latest analysis for Fortrea Holdings
Taking into account the latest results, the eleven analysts covering Fortrea Holdings provided consensus estimates of US$2.75b revenue in 2025, which would reflect a small 7.7% decline over the past 12 months. Fortrea Holdings is also expected to turn profitable, with statutory earnings of US$0.092 per share. In the lead-up to this report, the analysts had been modelling revenues of US$2.71b and earnings per share (EPS) of US$0.0067 in 2025. Although the revenue estimates have not really changed, we can see there's been a great increase in earnings per share expectations, suggesting that the analysts have become more bullish after the latest result.
The consensus price target rose 8.0% to US$24.56, suggesting that higher earnings estimates flow through to the stock's valuation as well. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values Fortrea Holdings at US$30.00 per share, while the most bearish prices it at US$17.00. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.
Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. Over the past three years, revenues have declined around 0.6% annually. Worse, forecasts are essentially predicting the decline to accelerate, with the estimate for an annualised 6.2% decline in revenue until the end of 2025. Compare this against analyst estimates for companies in the broader industry, which suggest that revenues (in aggregate) are expected to grow 6.6% annually. So it's pretty clear that, while it does have declining revenues, the analysts also expect Fortrea Holdings to suffer worse than the wider industry.