Fortrea Holdings appoints new director Erin Russell

Published 10/03/2025, 22:36
Fortrea Holdings appoints new director Erin Russell

Fortrea Holdings Inc. (NASDAQ:FTRE), a $963 million market cap company operating in the medical laboratories sector, has announced the appointment of Erin L. Russell as a Class II director, effective last Thursday. The company, which generated revenues of $2.7 billion in the last twelve months, is currently trading near its 52-week low of $9.55. The decision was made by the Board of Directors on March 5, 2025, as part of an agreement with Starboard Value LP, previously disclosed on February 21, 2025.

Russell, who has an extensive background in finance and healthcare, currently serves on the boards of Modivcare, eHealth (NASDAQ:EHTH), Inc., and Kadant Inc (NYSE:KAI). Her previous board roles include Tivity Health (NASDAQ:TVTY) Inc., DeVilbiss Healthcare LLC, DynaVox Inc., and 21st Century Oncology Inc. Russell’s experience also includes 16 years as a principal at Vestar Capital Partners (WA:CPAP), L.P. and advisory positions at the University of Virginia. According to InvestingPro data, her appointment comes at a challenging time for Fortrea, with the stock down over 70% in the past year and six analysts recently revising their earnings expectations downward.

As a non-employee director, Russell’s compensation aligns with the company’s existing policy for such roles. The company has clarified that there are no other arrangements or transactions involving Russell that would require disclosure under SEC regulations.

This appointment comes as Fortrea Holdings continues to navigate the healthcare sector’s evolving landscape, with Russell’s expertise expected to contribute to the company’s strategic direction. The information is based on a press release statement.

In other recent news, Fortrea has reported lower-than-expected earnings for the fourth quarter of 2024, with an EPS of $0.18 and revenue of $697 million, falling short of analyst estimates. The company’s full-year guidance for 2025 projects revenues between $2.45 billion and $2.55 billion, which is below the consensus estimate of $2.74 billion. TD Cowen and Citi have both adjusted their price targets for Fortrea, with TD Cowen lowering it to $11 and Citi to $12, while maintaining a Hold and Neutral rating, respectively. Analysts have cited Fortrea’s challenges with pre-spin bookings and a product mix heavily weighted towards oncology as reasons for the cautious outlook. Fortrea’s management has acknowledged these challenges and is implementing cost-saving measures, projecting yearly net savings of $40-50 million in SG&A expenses. Despite the setbacks, Fortrea’s backlog grew by 4.2% year-over-year, indicating potential future growth. The company is also focusing on innovative therapies and AI solutions, with plans for a return to growth in 2026.

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