Tetra Tech Q4 revenue beats estimates on contract wins
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
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(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.)