Core Viewpoint - Fortrea Holdings Inc. is facing a class action lawsuit for allegedly misleading investors regarding its financial projections and business model following its spin-off from Labcorp [3][4]. Company Overview - Fortrea is a global clinical research organization (CRO) that assists in the development of pharmaceutical and medical device products. It was spun off from Labcorp in June 2023 and had ongoing long-term projects at that time [3]. Allegations and Financial Misrepresentation - The lawsuit claims that Fortrea overestimated the revenue from its Pre-Spin Projects for 2025, overstated cost savings from phasing out transition service agreements (TSAs), and inflated its EBITDA targets for 2025, leading to a misleadingly positive outlook on its post-spin-off business model [5]. - Specific allegations include: 1. Overestimation of revenue from Pre-Spin Projects for 2025 [5]. 2. Overstatement of cost savings from the elimination of TSAs [5]. 3. Inflated EBITDA targets for 2025 [5]. Market Reactions and Stock Performance - Following a downgrade by Jefferies on September 25, 2024, which cited weaknesses in Fortrea's CRO model and the misleading nature of its cost savings, the stock dropped over 12% [5]. - A subsequent downgrade by Baird Equity Research on December 6, 2024, after the cancellation of two conferences, led to an additional 8% decline in stock price due to concerns over Fortrea's inconsistent performance and communication [5]. - On March 3, 2025, Fortrea reported disappointing Q4 and full-year 2024 results, admitting that its revenue and EBITDA goals for 2025 were unrealistic, resulting in a stock drop of more than 25% [5].

Core Viewpoint - Medpace (MEDP) has been upgraded to a Zacks Rank 1 (Strong Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Movement - The Zacks rating system is based on the consensus measure of EPS estimates from sell-side analysts, reflecting the company's changing earnings picture [1][2]. - Changes in earnings estimates are strongly correlated with near-term stock price movements, influenced by institutional investors who adjust their valuations based on these estimates [4]. Business Improvement Indicators - Rising earnings estimates and the Zacks rating upgrade suggest an improvement in Medpace's underlying business, which could lead to increased stock prices as investors respond positively [5][10]. - The Zacks Consensus Estimate for Medpace has increased by 8.3% over the past three months, with expected earnings of $13.99 per share for the fiscal year ending December 2025, indicating stability year-over-year [8]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [7]. - Only the top 5% of Zacks-covered stocks receive a "Strong Buy" rating, positioning Medpace among the best candidates for potential market-beating returns [9][10].

Group 1: Stock Highlights - Calix, Inc. (CALX) has a Zacks Rank 1 with a 25.6% increase in the current year earnings estimate over the last 60 days and a share price gain of 35.9% in the last three months compared to the S&P 500's 14.9% [1] - Medpace Holdings, Inc. (MEDP) also holds a Zacks Rank 1, with a 10.1% increase in the current year earnings estimate over the last 60 days and a share price gain of 46.1% in the last three months compared to the S&P 500's 14.9% [2] - West Pharmaceutical Services, Inc. (WST) maintains a Zacks Rank 1, with a 5.3% increase in the current year earnings estimate over the last 60 days and a share price gain of 23.4% in the last three months compared to the S&P 500's 14.9% [3] Group 2: Momentum Scores - Calix, Inc. has a Momentum Score of A, indicating strong momentum characteristics [1] - Medpace Holdings, Inc. also possesses a Momentum Score of A, reflecting its robust performance [2] - West Pharmaceutical Services, Inc. carries a Momentum Score of A, showcasing its positive momentum [3]

Core Viewpoint - The Gross Law Firm has issued a notice to shareholders of Fortrea Holdings Inc. regarding a class action lawsuit due to alleged misleading statements and overestimations related to the company's financial projections and business model [1][3]. Summary by Relevant Sections Allegations - The complaint alleges that during the class period from July 3, 2023, to February 28, 2025, Fortrea Holdings Inc. made materially false and misleading statements, including: - Overestimating revenue contributions from long-term projects, known as Pre-Spin Projects, to 2025 earnings [3]. - Overstating potential cost savings from exiting transition services agreements [3]. - Inflating previously announced EBITDA targets for 2025 [3]. - Overstating the viability of the post-spin-off business model and financial prospects [3]. - Resulting in public statements that were materially false and misleading throughout the relevant period [3]. Class Action Details - Shareholders who purchased shares during the specified class period are encouraged to register for the class action, with a deadline of August 1, 2025, to seek lead plaintiff status [4]. - Registration allows shareholders to receive updates through a portfolio monitoring software regarding the case's progress [4]. Law Firm's Mission - The Gross Law Firm aims to protect investors' rights against deceit, fraud, and illegal business practices, ensuring companies adhere to responsible business practices [5].

Financial Performance - ICON's closing backlog increased to $25 billion, representing a 4.9% growth[10] - Revenue for Q2 2025 was $2017 million[12] - Adjusted EBITDA margin was 19.6% for Q2 2025[19] - Adjusted earnings per share was $3.26 for Q2 2025[22] Customer Concentration - Top 1-5 customers accounted for 25.9% of total revenue in Q2 2025[15] - Top 6-10 customers accounted for 14.8% of total revenue in Q2 2025[15] - Top 11-25 customers accounted for 34.3% of total revenue in Q2 2025[15] Cash Flow - TTM (Trailing Twelve Months) Cash Flow from Operations was $1327.3 million[25] - TTM Free Cash Flow was $1182.1 million[25] Guidance - Total capital expenditure spend is expected to be approximately $200 million for 2025[28] Strategic Considerations - The company is focused on disciplined deployment of capital, including returning capital to shareholders and strategic M&A[8] - The clinical market remains variable due to macro uncertainty and muted funding[8]

Core Viewpoint - Fortrea Holdings Inc. is facing a class action lawsuit for allegedly misleading investors regarding its financial projections and business model following its spin-off from Labcorp [1][3][4]. Company Overview - Fortrea is a global clinical research organization (CRO) that assists in the development of pharmaceutical and medical device products. It was spun off from Labcorp in June 2023 and had ongoing long-term projects at that time [3]. Allegations of Misleading Information - The lawsuit claims that Fortrea overestimated the revenue from its Pre-Spin Projects for 2025, overstated cost savings from phasing out transition service agreements (TSAs), and inflated its EBITDA targets for 2025, presenting an overly optimistic view of its post-spin-off business model [5]. Market Reactions and Stock Performance - On September 25, 2024, Jefferies downgraded Fortrea from Buy to Hold, citing weaknesses in the CRO model and a lack of real cost savings, leading to a stock drop of over 12% [5]. - On December 6, 2024, Baird Equity Research downgraded Fortrea to Neutral after the company canceled two conferences, resulting in an additional 8% decline in stock price [5]. - On March 3, 2025, Fortrea reported disappointing Q4 and full-year 2024 results, admitting that its revenue and EBITDA goals for 2025 were unrealistic, causing the stock to drop more than 25% [5].

Financial Data and Key Metrics Changes - Revenue for Q2 2025 was $603.3 million, representing a year-over-year increase of 14.2% and 13.8% on a constant currency basis [10][12] - EBITDA for Q2 2025 was $130.5 million, an increase of 16.2% compared to $112.3 million in Q2 2024, with an EBITDA margin of 21.6% [11][12] - Net income for Q2 2025 was $90.3 million, a 2.2% increase from $88.4 million in the prior year [12] Business Line Data and Key Metrics Changes - Net new business awards entering backlog in Q2 increased by 12.6% year-over-year to $620.5 million, resulting in a net book-to-bill ratio of 1.03 [8][10] - Ending backlog as of June 30, 2025, was approximately $2.9 billion, a decrease of 1.8% from the prior year [8] Market Data and Key Metrics Changes - The company anticipates that approximately $1.75 billion of backlog will convert to revenue in the next twelve months, with a backlog conversion rate of 21.2% in Q2 [9][10] - The funding environment has stabilized and improved, allowing most clients with ongoing studies to secure sufficient funding [7][10] Company Strategy and Development Direction - The company raised its revenue guidance for 2025 by $280 million at the midpoint, now expecting total revenue in the range of $2.42 billion to $2.52 billion, reflecting growth of 14.7% to 19.5% over 2024 [14] - The strategic shift towards faster-burning therapeutic areas is expected to increase reimbursable costs as a percentage of revenue by 200 to 300 basis points over the remainder of the year [14] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about accelerating revenue in the second half of the year due to improved funding, fewer cancellations, and rapid project start-ups [7][10] - The management acknowledged that while the funding environment has improved, there remains uncertainty regarding future cancellations and their impact on 2026 [29][30] Other Important Information - The company repurchased approximately 1.75 million shares for $518.5 million in Q2 2025, with $826.3 million remaining under the share repurchase authorization program [12][13] - The effective tax rate for 2025 is expected to be between 18.5% and 19% [14] Q&A Session Summary Question: What are the booking expectations for the second half? - Management expects bookings to increase, with a reasonable chance of getting the book-to-bill ratio back over 1.15, depending on cancellation rates [19] Question: Can you provide information on cancellations? - Cancellations were down across the entire portfolio, with rates lower than historical averages, contributing to better-than-expected bookings and performance [20] Question: How does the increase in pass-through costs impact revenue? - The increase in pass-through costs is expected to significantly influence revenue, with a large portion of the revenue increase attributed to accelerated reimbursable cost activity [24] Question: What is the outlook for funding and demand activity? - Management noted that while funding has improved, there is still uncertainty regarding potential future downturns in demand activity [30] Question: How did intra-quarter trends evolve in Q2? - The business environment remained strong throughout Q2, with low cancellation rates contributing to a stable demand environment [35] Question: What are the dynamics around bookings and competitive win rates? - The win rate was lower in Q2 due to the presence of large projects that were lost, but the overall number of decisions made increased significantly [48] Question: What is the expected hiring trend for the second half? - The company anticipates accelerated hiring in the second half, with a focus on maintaining mid to upper single-digit growth rates for the year [85]

Core Viewpoint - Fortrea Holdings Inc. is facing a class action lawsuit for allegedly misleading investors regarding its financial projections and business model following its spin-off from Labcorp [1][3][4]. Company Overview - Fortrea is a global clinical research organization (CRO) that assists in the development of pharmaceutical and medical device products. It was spun off from Labcorp in June 2023 and had ongoing long-term projects at that time [3]. Allegations of Misleading Information - The lawsuit claims that Fortrea overestimated the revenue from its Pre-Spin Projects for 2025, overstated cost savings from phasing out transition service agreements (TSAs), and inflated its EBITDA targets for 2025, presenting an overly optimistic view of its post-spin-off business model [5]. Market Reactions and Stock Performance - On September 25, 2024, Jefferies downgraded Fortrea from Buy to Hold, citing weaknesses in the CRO model and a lack of real cost savings, leading to a stock drop of over 12% [5]. - Following the abrupt cancellation of two conferences, Baird Equity Research downgraded Fortrea to Neutral on December 6, 2024, resulting in an additional stock decline of 8% [5]. - On March 3, 2025, Fortrea reported disappointing Q4 and full-year 2024 results, admitting that its revenue and EBITDA goals for 2025 were unrealistic, causing the stock to drop more than 25% [5].

Core Viewpoint - The market anticipates Medpace (MEDP) will report a year-over-year increase in earnings driven by higher revenues in its upcoming earnings report for the quarter ended June 2025 [1][3]. Earnings Expectations - The consensus EPS estimate for Medpace is $3.00 per share, reflecting a year-over-year increase of +9.1% [3]. - Expected revenues for the quarter are $541.19 million, which is a 2.5% increase from the same quarter last year [3]. Estimate Revisions - Over the last 30 days, the consensus EPS estimate has been revised down by 0.81%, indicating a reassessment by analysts regarding the company's earnings prospects [4]. - The Most Accurate Estimate for Medpace is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -0.91%, suggesting a bearish outlook from analysts [12]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that a positive or negative reading can predict the likelihood of actual earnings deviating from consensus estimates, with positive readings being more reliable [9][10]. - Medpace currently holds a Zacks Rank of 3, which complicates the prediction of an earnings beat given the negative Earnings ESP [12]. Historical Performance - In the last reported quarter, Medpace exceeded the expected earnings of $3.06 per share by delivering $3.67, resulting in a surprise of +19.93% [13]. - The company has successfully beaten consensus EPS estimates in the last four quarters [14]. Conclusion - While Medpace does not appear to be a strong candidate for an earnings beat based on current estimates, investors should consider other factors before making investment decisions [17].

Core Viewpoint - The Gross Law Firm has issued a notice to shareholders of Fortrea Holdings Inc. regarding a class action lawsuit due to alleged misleading statements and overestimations related to the company's financial projections and business model [1][3]. Summary by Sections Class Action Details - The class period for the lawsuit is from July 3, 2023, to February 28, 2025 [3]. - Allegations include that Fortrea overestimated revenue contributions from long-term projects, overstated cost savings from exiting transition services agreements, and inflated EBITDA targets for 2025 [3]. Allegations Breakdown - Fortrea allegedly overestimated the revenue from its Pre-Spin Projects for 2025 [3]. - The company is accused of overstating potential cost savings from exiting certain agreements [3]. - As a result, the company's previously announced EBITDA targets for 2025 were inflated [3]. - The viability of Fortrea's post-spin-off business model and its financial prospects were also allegedly overstated [3]. Next Steps for Shareholders - Shareholders are encouraged to register for the class action by August 1, 2025, to participate in potential recovery [4]. - Registered shareholders will receive updates through a portfolio monitoring software [4]. Law Firm Background - The Gross Law Firm is a nationally recognized class action law firm focused on protecting investors' rights against deceit and fraud [5]. - The firm aims to ensure companies adhere to responsible business practices and seeks recovery for investors affected by misleading statements [5].