We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Tetra Tech, Inc. (TTEK - Free Report) reported fourth-quarter fiscal 2024 (ended Sept. 30, 2024) adjusted earnings of 38 cents per share, which surpassed the Zacks Consensus Estimate of 37 cents. The bottom line surged 15% year over year, driven by the strong momentum in each of its segments.
Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.
TTEK’s Revenue & Segmental Performance
Tetra Tech generated revenues of $1.37 billion, reflecting a year-over-year increase of 9%. Adjusted net revenues (adjusted revenues minus subcontractor costs) were $1.14 billion, up 8% year over year. The quarterly top line met the upper end of the management’s guided range of $1.09-$1.14 billion.
Tetra Tech’s adjusted revenues also exceeded the Zacks Consensus Estimate of $1.13 billion.
The backlog at the end of the fiscal fourth quarter was $5.38 billion, up 12% year over year.
Tetra Tech, Inc. Price, Consensus and EPS Surprise
Revenues from U.S. Federal customers (accounting for 33% of the quarter’s revenues) were up 12% year over year, supported by strength across civilian and coastal marine navigation sectors. U.S. Commercial sales (18% of the quarter’s revenues) increased 3% year over year, driven by higher renewable energy and environmental remediation sales.
U.S. State and Local sales (12% of the quarter’s revenues) increased 9% year over year, driven by strength in advanced water treatment. International sales (37% of the quarter’s revenues) were up 6% year over year, backed by strength in the infrastructure sector.
Tetra Tech reports revenues under the segments discussed below:
Net sales of the Government Services Group segment were $513 million, up 12% year over year. Revenues from the Commercial/International Services Group segment totaled $632 million, representing a year-over-year increase of 5%.
TTEK's Margin Profile
In the fiscal fourth quarter, Tetra Tech’s subcontractor costs totaled $230 million, reflecting an increase of 13.2% from the year-ago quarter. Other costs of revenues (adjusted) were $899.2 million, up 6.4% from the fiscal fourth quarter of 2023. Selling, general and administrative expenses (adjusted) were $92.7 million, up 20% from the year-ago fiscal quarter.
Operating income increased 33.4% year over year to $143.3 million, while the adjusted margin increased 50 basis points to 13.3%.
Tetra Tech’s Balance Sheet and Cash Flow
While exiting the fiscal fourth quarter, Tetra Tech had cash and cash equivalents of $232.7 million compared with $168.8 million recorded at the end of the fourth quarter of fiscal 2023. Long-term debt was $812.6 million compared with $879.5 million recorded at the end of fourth-quarter fiscal 2023.
In fiscal 2024, Tetra Tech generated net cash of $358.7 million from operating activities compared with $368.5 million in the prior fiscal year. Capital expenditure was $18.1 million, down 32.7% year over year. In fiscal 2024, TTEK’s proceeds from borrowings amounted to $217 million, while repayments on long-term debt totaled $287 million.
Shareholder-Friendly Policies
Tetra Tech distributed dividends totaling $58.8 million in fiscal 2024. This compares favorably with dividends of $52.1 million distributed in the previous fiscal year. It repurchased shares worth $12.9 million in the same period.
TTEK’s Fiscal 2025 Outlook
For fiscal 2025 (ending September 2025), Tetra Tech anticipates net revenues to be in the range of $4.565-$4.765 billion, higher than $4.322 billion reported in fiscal 2024. Adjusted earnings are predicted to be $1.40-$1.50 per share compared with $1.26 reported in fiscal 2024.
For the fiscal first quarter (ending December 2024), management estimates net revenues to be in the range of $1.09-$1.15 billion. Adjusted earnings are projected to be in the band of 32-34 cents per share.
Zacks Rank & Stocks to Consider
TTEK currently carries a Zacks Rank #3 (Hold). Here are some better-ranked stocks from the same space:
It has a trailing four-quarter average earnings surprise of 17.2%. The Zacks Consensus Estimate for KAI’s 2024 earnings has improved 1.8% in the past 60 days.
Atmus Filtration Technologies Inc. (ATMU - Free Report) presently has a Zacks Rank of 2 and a trailing four-quarter earnings surprise of 13.8%, on average. The consensus estimate for ATMU’s 2024 earnings has increased 1.3% in the past 60 days.
Generac Holdings (GNRC - Free Report) presently carries a Zacks Rank of 2. GNRC delivered a trailing four-quarter earnings surprise of 10.8%, on average. The Zacks Consensus Estimate for Generac Holdings’ 2024 earnings has increased 5.1% in the past 60 days.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Tetra Tech's Q4 Earnings & Revenues Surpass Estimates, Rise Y/Y
Tetra Tech, Inc. (TTEK - Free Report) reported fourth-quarter fiscal 2024 (ended Sept. 30, 2024) adjusted earnings of 38 cents per share, which surpassed the Zacks Consensus Estimate of 37 cents. The bottom line surged 15% year over year, driven by the strong momentum in each of its segments.
Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.
TTEK’s Revenue & Segmental Performance
Tetra Tech generated revenues of $1.37 billion, reflecting a year-over-year increase of 9%. Adjusted net revenues (adjusted revenues minus subcontractor costs) were $1.14 billion, up 8% year over year. The quarterly top line met the upper end of the management’s guided range of $1.09-$1.14 billion.
Tetra Tech’s adjusted revenues also exceeded the Zacks Consensus Estimate of $1.13 billion.
The backlog at the end of the fiscal fourth quarter was $5.38 billion, up 12% year over year.
Tetra Tech, Inc. Price, Consensus and EPS Surprise
Tetra Tech, Inc. price-consensus-eps-surprise-chart | Tetra Tech, Inc. Quote
Revenues from U.S. Federal customers (accounting for 33% of the quarter’s revenues) were up 12% year over year, supported by strength across civilian and coastal marine navigation sectors. U.S. Commercial sales (18% of the quarter’s revenues) increased 3% year over year, driven by higher renewable energy and environmental remediation sales.
U.S. State and Local sales (12% of the quarter’s revenues) increased 9% year over year, driven by strength in advanced water treatment. International sales (37% of the quarter’s revenues) were up 6% year over year, backed by strength in the infrastructure sector.
Tetra Tech reports revenues under the segments discussed below:
Net sales of the Government Services Group segment were $513 million, up 12% year over year. Revenues from the Commercial/International Services Group segment totaled $632 million, representing a year-over-year increase of 5%.
TTEK's Margin Profile
In the fiscal fourth quarter, Tetra Tech’s subcontractor costs totaled $230 million, reflecting an increase of 13.2% from the year-ago quarter. Other costs of revenues (adjusted) were $899.2 million, up 6.4% from the fiscal fourth quarter of 2023. Selling, general and administrative expenses (adjusted) were $92.7 million, up 20% from the year-ago fiscal quarter.
Operating income increased 33.4% year over year to $143.3 million, while the adjusted margin increased 50 basis points to 13.3%.
Tetra Tech’s Balance Sheet and Cash Flow
While exiting the fiscal fourth quarter, Tetra Tech had cash and cash equivalents of $232.7 million compared with $168.8 million recorded at the end of the fourth quarter of fiscal 2023. Long-term debt was $812.6 million compared with $879.5 million recorded at the end of fourth-quarter fiscal 2023.
In fiscal 2024, Tetra Tech generated net cash of $358.7 million from operating activities compared with $368.5 million in the prior fiscal year. Capital expenditure was $18.1 million, down 32.7% year over year. In fiscal 2024, TTEK’s proceeds from borrowings amounted to $217 million, while repayments on long-term debt totaled $287 million.
Shareholder-Friendly Policies
Tetra Tech distributed dividends totaling $58.8 million in fiscal 2024. This compares favorably with dividends of $52.1 million distributed in the previous fiscal year. It repurchased shares worth $12.9 million in the same period.
TTEK’s Fiscal 2025 Outlook
For fiscal 2025 (ending September 2025), Tetra Tech anticipates net revenues to be in the range of $4.565-$4.765 billion, higher than $4.322 billion reported in fiscal 2024. Adjusted earnings are predicted to be $1.40-$1.50 per share compared with $1.26 reported in fiscal 2024.
For the fiscal first quarter (ending December 2024), management estimates net revenues to be in the range of $1.09-$1.15 billion. Adjusted earnings are projected to be in the band of 32-34 cents per share.
Zacks Rank & Stocks to Consider
TTEK currently carries a Zacks Rank #3 (Hold). Here are some better-ranked stocks from the same space:
Kadant Inc. (KAI - Free Report) presently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
It has a trailing four-quarter average earnings surprise of 17.2%. The Zacks Consensus Estimate for KAI’s 2024 earnings has improved 1.8% in the past 60 days.
Atmus Filtration Technologies Inc. (ATMU - Free Report) presently has a Zacks Rank of 2 and a trailing four-quarter earnings surprise of 13.8%, on average. The consensus estimate for ATMU’s 2024 earnings has increased 1.3% in the past 60 days.
Generac Holdings (GNRC - Free Report) presently carries a Zacks Rank of 2. GNRC delivered a trailing four-quarter earnings surprise of 10.8%, on average. The Zacks Consensus Estimate for Generac Holdings’ 2024 earnings has increased 5.1% in the past 60 days.