Fortrea (FTRE, Financial) just dropped a mic-worthy Q3 earnings report, and investors went wild, pushing the stock up a staggering 37% today. The company, a global contract research organization, posted $674.9 million in revenue and a solid adjusted EBITDA of $64.2 million, marking a 16.3% sequential jump. CEO Tom Pike didn't hold back, spotlighting Fortrea's smooth post-spin progress, with over 90% of IT infrastructure now migrated to its independent systems. Oh, and let's not forget that juicy 1.23x book-to-bill ratio, showing a pipeline packed with pharma and biotech contracts.
But here's the kicker: despite a GAAP net loss of $18.5 million, Fortrea smashed expectations with adjusted EPS of $0.23. Their backlog? A beastly $7.57 billion. Management is standing tall, reaffirming its full-year revenue guidance at $2.7 to $2.725 billion. It's clear—they're laser-focused on delivering, even with some hurdles in their rearview mirror.
For savvy investors, today's stock rally screams one thing: confidence. Fortrea is proving it's got what it takes to dominate the CRO space and drive real healthcare innovation. With a robust backlog and momentum building, the big question is whether this breakout moment is just the beginning of a much bigger run. Eyes on Q4—it's going to be a show
