Tetra Tech (TTEK) Beats On Q2 Earnings, Raises EPS View
Zacks Investment Research | May 03, 2017 10:00PM ET
In the recently reported second-quarter fiscal 2017 results, Tetra Tech Inc. (NASDAQ:TTEK) posted its second consecutive earnings beat. The company’s earnings from ongoing operations of 48 cents beat the Zacks Consensus Estimate of 46 cents by 4.3%. Earnings exceeded the company’s guided range of 42–47 cents.
Tetra Tech fared even better year over year, with adjusted earnings up 30% from the prior-year quarter’s figure of 37 cents. Decent top-line growth and greater operating efficiency resulting from cost-management initiatives, fueled bottom-line growth.
Inside the Headlines
Net revenues were up 6.9% year over year to $511.9 million, comfortably beating the Zacks Consensus Estimate of $491 million. Revenues surpassed the upper end of the company’s estimated range of $450–$475 million. Moreover, Tetra Tech’s ongoing revenues grew 8% to $515.6 million on a year-over-year basis.
The top line was supported by the expansion of the U.S. Federal, State and Local, and Commercial development projects. Primarily, strong performance of the Water, Environment and Infrastructure segment supplemented the quarterly sales performance.
Water, Environment and Infrastructure revenues continued their solid growth trajectory, rising 21.0% year over year to $201 million. This segment primarily benefited from robust performance of the North American infrastructure and environmental business lines.
Also, net revenues from Resource Management and Energy rose 2.0% year over year to $315 million. While the U.S. development projects drove the sales performance, sluggish oil and gas markets restricted top-line growth.
In the quarter under review, total backlog from ongoing operations reached $2.5 billion, marking an impressive jump of 18% year over year, driven by strong orders in the federal and state, and local markets. Some of the notable contracts clinched by the company during the quarter include the $240 million U.S. Navy Remediation contract, the $57 million USAID Pakistan Energy contract and the $25 million USAID Mozambique Monitoring & Evaluation contract.
Additionally, ongoing operating income was up 27% year over year to $44 million.
Tetra Tech, Inc. Price, Consensus and EPS Surprise
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