Background screening provider First Advantage (NASDAQ:FA) will be reporting results this Thursday before the bell. Here’s what to look for.
First Advantage beat analysts’ revenue expectations last quarter, reporting revenues of $420 million, up 36.8% year on year. It was an exceptional quarter for the company, with an impressive beat of analysts’ revenue estimates and a beat of analysts’ EPS estimates.
Is First Advantage a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting First Advantage’s revenue to grow 5% year on year, slowing from the 109% increase it recorded in the same quarter last year.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. First Advantage has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at First Advantage’s peers in the professional staffing & hr solutions segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Kforce posted flat year-on-year revenue, meeting analysts’ expectations, and Robert Half reported a revenue decline of 3.8%, in line with consensus estimates. Kforce traded up 43.3% following the results while Robert Half was down 5.8%.
Read our full analysis of Kforce’s results here and Robert Half’s results here.
There has been positive sentiment among investors in the professional staffing & hr solutions segment, with share prices up 11% on average over the last month. First Advantage is up 13% during the same time and is heading into earnings with an average analyst price target of $15 (compared to the current share price of $12.65).
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