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Why Is Tetra (TTEK) Up 7.9% Since Last Earnings Report?
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A month has gone by since the last earnings report for Tetra Tech (TTEK - Free Report) . Shares have added about 7.9% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Tetra due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Tetra Tech reported better-than-expected results for first-quarter fiscal 2022 (ended December 2021). Its earnings beat the Zacks Consensus Estimate by 15.53% and sales surpassed the same by 1.17%.
The company’s adjusted earnings per share in the reported quarter were $1.19, surpassing the Zacks Consensus Estimate of $1.03. Quarterly earnings expanded 24% from the year-ago reported figure of 96 cents.
The bottom line also surpassed management’s projection of 98 cents to $1.03 per share.
Revenues & Segmental Performance
In the fiscal first quarter, Tetra Tech generated adjusted revenues of $858.5 million, reflecting a year-over-year increase of 12.2%. Adjusted net revenues (adjusted revenues minus subcontractor costs) were $679.3 million, up 12.3% year over year. The quarterly top line came above the company’s guidance of $630-$680 million.
Tetra Tech’s revenues exceeded the Zacks Consensus Estimate of $671.5 million.
Backlog at the end of the quarter was $3,448.3 million, down 0.9% from the previous quarter.
Revenues from the U.S. Federal customers (accounting for 27% of the quarter’s revenues) were down 1% year over year. The U.S. Commercial sales (21% of the quarter’s revenues) increased 7% year over year on higher environmental programs.
The U.S. State and Local sales (18% of the quarter’s revenues) increased 29% on strength across municipal infrastructure and disaster response. International sales (34% of the quarter’s revenues) increased 20% year over year, backed by infrastructure developments.
The company reports revenues under the segments discussed below:
Net sales of Government Services Group were $327.1 million, up 7.4% year over year. Revenues from Commercial / International Services Group totaled $352.2 million, underlining a year-over-year increase of 17.2%.
Margin Profile
In the fiscal first quarter, Tetra Tech’s subcontractor costs totaled $179.2 million, reflecting a rise of 12.1% from the year-ago quarter. Other costs of revenues were $543.9 million, up 11.3%. Selling, general and administrative expenses were $52.6 million, up 5.2% from the year-ago quarter.
Operating income (adjusted) in the reported quarter increased 24.9% year over year to $82.8 million, while the adjusted margin expanded 120 basis points to 12.2%.
Balance Sheet and Cash Flow
Exiting the fiscal first quarter, Tetra Tech had cash and cash equivalents of $205.5 million, up 23.3% from $166.6 million recorded at the end of the prior quarter. Long-term debt increased 23.4% sequentially to $246.9 million.
In the quarter, the company generated net cash of $82.4 million from operating activities compared with $33.2 million in the year-ago quarter. Capital expenditure was $1.5 million, down 15.4% year over year. In the quarter, the company’s proceeds from borrowings amounted to $50.8 million, while repayments totaled $4 million.
Shareholder-Friendly Policies
Tetra Tech bought back shares worth $50 million and distributed dividends totaling $10.8 million in the first quarter of fiscal 2022. These compare favorably with share buybacks of $15 million and dividends of $9.2 million distributed in first-quarter fiscal 2021.
Exiting the fiscal first quarter, the company had $498 million worth of authorization left under its approved buyback programs.
Outlook
For fiscal 2022 (ending September 2022), Tetra Tech anticipates net revenues of $2.65-$2.80 billion, higher than $2.60-$2.80 billion stated previously. Adjusted earnings are predicted to be $4.15-$4.30, up from the previously mentioned $4.00-$4.20.
For the second quarter of fiscal 2022 (ending March 2022), the company estimates net revenues of $620-$670 million and adjusted earnings per share of 86-91 cents.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates have trended upward during the past month.
VGM Scores
At this time, Tetra has a nice Growth Score of B, though it is lagging a bit on the Momentum Score front with a C. Charting a somewhat similar path, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of this revision has been net zero. It comes with little surprise Tetra has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.
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Why Is Tetra (TTEK) Up 7.9% Since Last Earnings Report?
A month has gone by since the last earnings report for Tetra Tech (TTEK - Free Report) . Shares have added about 7.9% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Tetra due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Tetra Tech Tops Q1 Earnings Estimates, Hikes FY22 View
Tetra Tech reported better-than-expected results for first-quarter fiscal 2022 (ended December 2021). Its earnings beat the Zacks Consensus Estimate by 15.53% and sales surpassed the same by 1.17%.
The company’s adjusted earnings per share in the reported quarter were $1.19, surpassing the Zacks Consensus Estimate of $1.03. Quarterly earnings expanded 24% from the year-ago reported figure of 96 cents.
The bottom line also surpassed management’s projection of 98 cents to $1.03 per share.
Revenues & Segmental Performance
In the fiscal first quarter, Tetra Tech generated adjusted revenues of $858.5 million, reflecting a year-over-year increase of 12.2%. Adjusted net revenues (adjusted revenues minus subcontractor costs) were $679.3 million, up 12.3% year over year. The quarterly top line came above the company’s guidance of $630-$680 million.
Tetra Tech’s revenues exceeded the Zacks Consensus Estimate of $671.5 million.
Backlog at the end of the quarter was $3,448.3 million, down 0.9% from the previous quarter.
Revenues from the U.S. Federal customers (accounting for 27% of the quarter’s revenues) were down 1% year over year. The U.S. Commercial sales (21% of the quarter’s revenues) increased 7% year over year on higher environmental programs.
The U.S. State and Local sales (18% of the quarter’s revenues) increased 29% on strength across municipal infrastructure and disaster response. International sales (34% of the quarter’s revenues) increased 20% year over year, backed by infrastructure developments.
The company reports revenues under the segments discussed below:
Net sales of Government Services Group were $327.1 million, up 7.4% year over year. Revenues from Commercial / International Services Group totaled $352.2 million, underlining a year-over-year increase of 17.2%.
Margin Profile
In the fiscal first quarter, Tetra Tech’s subcontractor costs totaled $179.2 million, reflecting a rise of 12.1% from the year-ago quarter. Other costs of revenues were $543.9 million, up 11.3%. Selling, general and administrative expenses were $52.6 million, up 5.2% from the year-ago quarter.
Operating income (adjusted) in the reported quarter increased 24.9% year over year to $82.8 million, while the adjusted margin expanded 120 basis points to 12.2%.
Balance Sheet and Cash Flow
Exiting the fiscal first quarter, Tetra Tech had cash and cash equivalents of $205.5 million, up 23.3% from $166.6 million recorded at the end of the prior quarter. Long-term debt increased 23.4% sequentially to $246.9 million.
In the quarter, the company generated net cash of $82.4 million from operating activities compared with $33.2 million in the year-ago quarter. Capital expenditure was $1.5 million, down 15.4% year over year. In the quarter, the company’s proceeds from borrowings amounted to $50.8 million, while repayments totaled $4 million.
Shareholder-Friendly Policies
Tetra Tech bought back shares worth $50 million and distributed dividends totaling $10.8 million in the first quarter of fiscal 2022. These compare favorably with share buybacks of $15 million and dividends of $9.2 million distributed in first-quarter fiscal 2021.
Exiting the fiscal first quarter, the company had $498 million worth of authorization left under its approved buyback programs.
Outlook
For fiscal 2022 (ending September 2022), Tetra Tech anticipates net revenues of $2.65-$2.80 billion, higher than $2.60-$2.80 billion stated previously. Adjusted earnings are predicted to be $4.15-$4.30, up from the previously mentioned $4.00-$4.20.
For the second quarter of fiscal 2022 (ending March 2022), the company estimates net revenues of $620-$670 million and adjusted earnings per share of 86-91 cents.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates have trended upward during the past month.
VGM Scores
At this time, Tetra has a nice Growth Score of B, though it is lagging a bit on the Momentum Score front with a C. Charting a somewhat similar path, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of this revision has been net zero. It comes with little surprise Tetra has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.