FTRE stock touches 52-week low at $4.01 amid sharp annual decline

Published 23/05/2025, 15:40
FTRE stock touches 52-week low at $4.01 amid sharp annual decline

Fortrea Holdings (FTRE) stock has plummeted to a 52-week low, reaching a price level of $4.01. With a current market capitalization of $384 million, InvestingPro analysis suggests the stock is trading below its Fair Value, despite challenges. This significant drop reflects a stark contrast to the company’s performance over the past year, with Fortrea Holdings experiencing a precipitous 1-year change, down by -84.03%. Investors have been closely monitoring the stock as it struggles to find a foothold in a challenging market environment, with today’s low marking a critical point for the company’s valuation and investor sentiment. The steep decline over the past year has raised concerns about the company’s future prospects and the potential for recovery.

In other recent news, Fortrea Holdings Inc. reported its first-quarter 2025 earnings, which fell short of analysts’ expectations. The company posted an earnings per share (EPS) of $0.02, significantly below the forecasted $0.41, and reported revenue of $651.3 million, which was also below the anticipated $821 million. Despite the earnings miss, Fortrea reaffirmed its 2025 revenue guidance of $2.45 to $2.55 billion and adjusted EBITDA guidance of $170 to $200 million. In a leadership change, Thomas Pike, the CEO and Chairman, announced his departure, with Peter Neupert stepping in as interim CEO and Board Chair. In response to the earnings report, Mizuho (NYSE:MFG) lowered Fortrea’s stock price target from $10.00 to $8.00, maintaining a Neutral rating due to potential challenges such as a difficult funding landscape and a volatile macroeconomic environment. Fortrea’s management is implementing cost reduction strategies, aiming for $150 million in savings for 2025. The company also reported a net loss of $562.9 million, primarily due to a $488.8 million goodwill impairment. Despite these challenges, Fortrea achieved an adjusted EBITDA of $30.3 million, up from $27.1 million in the prior year.

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