Tetra Tech (TTEK) Secures $85M Single-Award Deal From DFID
Zacks Investment Research | Oct 16, 2019 08:33AM ET
Tetra Tech, Inc. (NASDAQ:TTEK) recently announced that it has clinched a $85-million contract from the U.K. Department for International Development (“DFID”). Per the single-award deal, the company will support DFID’s Powering Economic Growth in Northern Nigeria (LINKS) program.
Designed to support sustainable economic growth and improve standard of living for the people of Nigeria, DFID’s seven-year LINKS program will help in increasing income of 3 million people, apart from supporting 100,000 full-time equivalent job creation. Per the deal, Tetra Tech will aid DFID to recognize and support potential markets in Nigeria, which include waste management, renewable and off-grid energy solutions, as well as agricultural sector’s information and communications technology applications.
Tetra Tech will be responsible for collecting data, performing advanced analytics and conducting geospatial mapping during the project’s lifespan. Also, the company’s researchers will work on assessing new business models and technology that would help in boosting economic performance and cut transaction-related costs. Moreover, the deal will involve the company’s monitoring and evaluation experts to examine data and provide market intelligence to the private sector and project beneficiaries.
Existing Business Scenario
Tetra Tech’s top line has gained significantly from its multiple government contract wins in the recent years. At the end of third quarter of fiscal 2019 (ended Jun 30, 2019), total backlog from ongoing operations – which is the best indicator of future revenue streams – grew 16.4% year over year to a record level of $2,834 million.
For the rest of fiscal 2019 (ending September 2019), the company anticipates that the U.S. state and local business will benefit from growth in disaster response and recovery planning as well as the broad-based infrastructure business. International revenues are predicted to increase for the rest of the year while modest rise is expected from U.S. federal customers. For fiscal 2019, the company anticipates net revenues of $2.37-$2.41 billion compared with the previously estimated $2.3-$2.4 billion.
In the past six months, the company's shares have recorded an impressive rally of 36.9%, outperforming the Zacks Investment Research
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