Fortrea Holdings Inc. (NASDAQ:FTRE) reported soft first-quarter FY24 results and cut its revenue outlook on Monday.

Revenue of $662.1 million missed the consensus of $754.6 million. As of March-end, the backlog stood at $7.4 billion, and the book-to-bill ratio for the quarter was 1.11x.

Adjusted EBITDA stood at $29.5 million, a decline from $41.7 million a year ago. Adjusted loss of 4 cents per share missed the street view for a profit of 1 cent per share, according to data from Benzinga Pro.

"The demand for our services is good. Our business operations are sound even as we continue to knock down challenges related to the unique circumstances of our 2023 spin-out and before," Tom Pike, chairman and CEO of Fortrea, said. "We have made strong progress with the planned exits of our Transition Services Agreements with our former parent company, and our planned divestment of our Endpoint and Patient Access businesses is making good progress."

For FY24, the company cut the revenue guidance to $2.785 billion-$2.855 billion from $3.14 billion-$3.205 billion (vs. estimate of $3.08 billion). Also, Fortrea trimmed adjusted EBITDA guidance to $240.0 million-$260.0 million from $280 million-$320 million.

Fortrea shares fell 14.9% to close at $28.11 on Monday.

These analysts made changes to their price targets on Fortrea after the company reported quarterly results.

• Baird cut the price target on Fortrea from $45 to $36. Baird analyst Eric Coldwell upgraded the stock from Neutral to Outperform.
• Evercore ISI Group slashed Fortrea price target from $43 to $31. Evercore ISI Group analyst Elizabeth Anderson maintained an Outperform rating.

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