First Advantage (FA) Q4 Earnings and Revenues Miss Estimates

Core Insights - First Advantage (FA) reported quarterly earnings of $0.18 per share, missing the Zacks Consensus Estimate of$ 0.24 per share, and down from $0.29 per share a year ago, representing an earnings surprise of -25% [1] - The company posted revenues of$ 307.12 million for the quarter ended December 2024, missing the Zacks Consensus Estimate by 4.12%, compared to year-ago revenues of $202.56 million [2] - The stock has underperformed the market, losing about 0.8% since the beginning of the year, while the S&P 500 gained 1.3% [3] Earnings Outlook - The current consensus EPS estimate for the coming quarter is$ 0.17 on revenues of $365.29 million, and for the current fiscal year, it is$ 1 on revenues of $1.6 billion [7] - The estimate revisions trend for First Advantage is mixed, resulting in a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [6] Industry Context - The Technology Services industry, to which First Advantage belongs, is currently in the top 30% of over 250 Zacks industries, suggesting a favorable outlook compared to the bottom 50% [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]