First Advantage (NYSE:FA) Releases FY 2025 Earnings Guidance

Key Points

• First Advantage has updated its FY 2025 earnings guidance, forecasting earnings per share between 0.860 and 1.030, slightly above the consensus estimate of 0.936.
• The company's revenue guidance ranges from $1.5 billion to $1.6 billion, aligning closely with the consensus estimate of $1.5 billion.
• Analyst ratings show a mixed outlook, with Royal Bank of Canada downgrading First Advantage to a "sector perform" rating, while Barclays increased its target price from $15.00 to $18.00.

First Advantage (NYSE:FA - Get Free Report) updated its FY 2025 earnings guidance on Thursday. The company provided earnings per share guidance of 0.860-1.030 for the period, compared to the consensus earnings per share estimate of 0.936. The company issued revenue guidance of $1.5 billion-$1.6 billion, compared to the consensus revenue estimate of $1.5 billion.

Analyst Ratings Changes

Several research analysts have weighed in on FA shares. Royal Bank Of Canada downgraded First Advantage from an "outperform" rating to a "sector perform" rating and set a $20.00 price target for the company. in a report on Friday, May 9th. Barclays upped their target price on First Advantage from $15.00 to $18.00 and gave the company an "equal weight" rating in a research note on Thursday, May 29th. Finally, Needham & Company LLC reiterated a "hold" rating on shares of First Advantage in a research report on Monday, June 2nd. Five analysts have rated the stock with a hold rating and two have assigned a buy rating to the company. Based on data from MarketBeat, the company presently has an average rating of "Hold" and a consensus target price of $20.25.

First Advantage Stock Up 1.0%

Shares of NYSE FA opened at $16.21 on Thursday. The stock has a market capitalization of $2.81 billion, a PE ratio of 540.33 and a beta of 1.24. The company has a quick ratio of 3.85, a current ratio of 3.85 and a debt-to-equity ratio of 0.61. The firm has a fifty day moving average of $17.40 and a 200-day moving average of $16.51. First Advantage has a 52-week low of $12.32 and a 52-week high of $20.79.

First Advantage (NYSE:FA - Get Free Report) last posted its quarterly earnings results on Thursday, May 8th. The company reported $0.17 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.13 by $0.04. First Advantage had a return on equity of 13.16% and a net margin of 0.65%. The business's revenue for the quarter was up 109.3% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $0.17 earnings per share. On average, analysts anticipate that First Advantage will post 0.74 EPS for the current year.

Institutional Investors Weigh In On First Advantage

A number of large investors have recently modified their holdings of FA. Brighton Jones LLC purchased a new stake in shares of First Advantage during the fourth quarter worth about $257,000. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. increased its holdings in First Advantage by 4.3% during the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 35,567 shares of the company's stock worth $501,000 after purchasing an additional 1,471 shares during the last quarter. Finally, UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC increased its holdings in First Advantage by 7.5% during the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 239,233 shares of the company's stock worth $3,371,000 after purchasing an additional 16,664 shares during the last quarter. Institutional investors and hedge funds own 94.91% of the company's stock.

About First Advantage

First Advantage Corporation provides employment background screening, identity, and verification solutions worldwide. It offers pre-onboarding products and solutions, such as criminal background checks, drug/health screening, extended workforce screening, FBI channeling, identity checks and biometric fraud mitigation tools, education/work history verification, driver records and compliance, healthcare credentials, executive screening, and other screening products.

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