First Advantage (FA) Tops Q2 Earnings and Revenue Estimates

Group 1: Earnings Performance - First Advantage reported quarterly earnings of $0.27 per share, exceeding the Zacks Consensus Estimate of $0.24 per share, and up from $0.21 per share a year ago, representing an earnings surprise of +12.50% [1] - The company posted revenues of $390.63 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 1.31%, compared to year-ago revenues of $184.55 million [2] - Over the last four quarters, First Advantage has surpassed consensus EPS estimates three times and topped consensus revenue estimates two times [2] Group 2: Stock Performance and Outlook - First Advantage shares have declined approximately 13.5% since the beginning of the year, while the S&P 500 has gained 7.9% [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The current consensus EPS estimate for the coming quarter is $0.28 on revenues of $410.13 million, and for the current fiscal year, it is $0.96 on revenues of $1.54 billion [7] Group 3: Industry Context - The Technology Services industry, to which First Advantage belongs, is currently ranked in the top 38% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors or through tools like the Zacks Rank [5][6]