What Happened?

Shares of background screening provider First Advantage (NASDAQ: FA) jumped 9.8% in the morning session after the company reported third-quarter financial results that surpassed analyst expectations and provided an encouraging full-year outlook. The background screening services provider posted revenue of $409.2 million for the quarter, a significant 105% year-on-year jump that beat Wall Street's forecast. Adjusted earnings were $0.30 per share, also topping estimates. In addition to the strong quarterly performance, First Advantage raised its guidance for the full year 2025. The company announced it now expects revenues with a midpoint of $1.55 billion and adjusted earnings per share with a midpoint of $1.00. This update signaled management's confidence in the business's trajectory.

Is now the time to buy First Advantage? Access our full analysis report here.

What Is The Market Telling Us

First Advantage’s shares are somewhat volatile and have had 14 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

The previous big move we wrote about was 27 days ago when the stock dropped 3.4% on the news that President Donald Trump threatened to significantly increase tariffs on Chinese imports, reigniting trade war fears. The threat immediately broke a monthslong calm on Wall Street, sending the S&P 500 down 1.2% in its worst session since August. For the industrial sector, which is heavily reliant on global supply chains, the prospect of new tariffs is particularly concerning. Aggressive U.S. trade policies lead to unpredictable input costs and disrupt manufacturing operations. This volatility weighs heavily on companies that depend on a stable international trade for both sourcing materials and selling finished goods, leading to a broad sell-off among industrial giants.

First Advantage is down 22.3% since the beginning of the year, and at $14.33 per share, it is trading 28.4% below its 52-week high of $20.01 from February 2025. Investors who bought $1,000 worth of First Advantage’s shares at the IPO in June 2021 would now be looking at an investment worth $727.16.

Do you want to know what moves the business you care about? Add them to your StockStory watchlist and every time a stock significantly moves, we provide you with a timely explanation straight to your inbox. It’s free for active Edge members and will only take you a second.