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Tetra Tech Q4 revenue beats estimates on contract wins

By Reuters News


Overview

  • US technical and engineering services firm's Q4 revenue rose and beat analyst expectations

  • Q4 adjusted EPS increased 9% yr/yr and beat analyst expectations

  • Company repurchased $100 mln of stock in Q4


Outlook

  • Tetra Tech expects Q1 fiscal 2027 EPS between $0.36 and $0.38

  • Company sees Q1 fiscal 2027 net revenue between $1.04 bln and $1.08 bln

  • Tetra Tech expects fiscal 2027 EPS to range from $1.65 to $1.80


Result Drivers

  • CONTRACT WINS - Co said new contracts for water, environmental, infrastructure, and defense services contributed to backlog growth and Q4 results

  • INCREASING DEMAND - Co said rising demand for technical services in water and environmental programs, including digital automation, supported Q4 performance

  • MARGIN EXPANSION - Co attributed higher profit margins and margin expansion to strong performance and consistent cash flow generation, per CFO Steve Burdick


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q4 Revenue

Beat

$1.34 bln

$1.15 bln (6 Analysts)

Q4 Adjusted EPS

Beat

$0.49

$0.47 (6 Analysts)

Q4 EPS

$0.51

Q4 Operating Income

$188 mln


Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the environmental services & equipment peer group is "buy"

  • Wall Street's median 12-month price target for Tetra Tech, Inc. is $41.00, about 0.9% above its November 10 closing price of $40.65

  • The stock recently traded at 24 times the next 12-month earnings vs. a P/E of 19 three months ago


Reuters Recommended Reads

  • Nov 9 - Ameresco Q3 profit beats estimates; backlog hits record

  • Nov 9 - Casella Waste Systems Q3 revenue misses estimates, posts net loss

  • Nov 9 - Select Water Solutions Q3 revenue beats on higher volumes handled


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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