RBC Capital analysts provided their outlook on First Advantage's (NASDAQ:FA) upcoming Q1/23 earnings, expected to be released on May 10.

The analysts expect a roughly in-line quarter with tough year-over-year comps in H1/23 and slightly higher OPEX as a percentage of sales. Although comps get easier in H2/23, the analysts continue to monitor the quit rates and the hiring environment.

The analysts estimate Q1/23 revenues of $172 million (down 9.5% year-over-year), roughly in line with the Street estimate of $174 million. RBC Capital’s EPS estimate stands at $0.18, also below the Street estimate of $0.19.

Given the negative macro headwinds, the analysts expect the company to focus on controlling cost, leveraging automation, and up/cross-selling its existing customer base.