First Advantage Corp. (FA), a leading provider of employment background screening services, saw its stock plunge around 7.37% in pre-market trading on Thursday. The steep decline came after the company reported disappointing fourth quarter 2024 earnings and provided weaker-than-expected guidance for 2025.
For the fourth quarter, First Advantage reported adjusted earnings per share of $0.18, missing analyst estimates of $0.23. While revenue of $307.1 million beat expectations, it grew at a slower pace than anticipated, up 51.62% year-over-year. The company's results were impacted by higher costs and expenses related to its recently completed acquisition of Sterling Check Corp.
Looking ahead to 2025, First Advantage's guidance ranges fell short of analyst projections. The company expects full-year revenue between $1.5 billion and $1.6 billion, with adjusted earnings per share in the range of $0.86 to $1.03. Analysts had anticipated higher figures, reflecting a more cautious outlook from the company.