Shares Of First Advantage Slip On Weak 1Q Earnings

ST. PETERSBURG, Fla. (AP) — Shares of First Advantage Corp. slipped Tuesday after the risk-management services provider's first-quarter earnings missed analyst expectations.

First Advantage stock fell 82 cents, or 6 percent, to $13.29 in midday trading. The company's services include employee background checks, consumer credit information and recruitment.

On Monday, First Advantage said first-quarter profit fell by a third, as rising levels of unemployment hurt its employer services segment.

For the three-month period ending March 31, net income was $10.8 million, or 18 cents per share. That was compared to $16.2 million, or 27 per share, in the year-ago period.

Revenue was $203 million in the first quarter, compared to $202 million the same time last year.

On average, analysts polled by Thomson One were expecting quarterly earnings of 25 cents per share on $211 million of revenue.

On Tuesday, Baird analyst Mark Marcon maintained his "Neutral" rating on the company. He noted that strong expense controls and rebound in the mortgage business should offset losses elsewhere.

However, Marcon noted that earnings likely won't return to previous levels until a broader economic recovery.

"We intend to remain on the sideline until we see evidence of returning strength in the company's target markets," he wrote.