Environmental engineering firm Tetra Tech (NASDAQ:TTEK) will be reporting earnings tomorrow after the bell. Here’s what investors should know.
Tetra Tech beat analysts’ revenue expectations by 8.6% last quarter, reporting revenues of $1.20 billion, up 17.9% year on year. It was a strong quarter for the company, with revenue guidance for next quarter beating analysts’ expectations and a decent beat of analysts’ EPS estimates.
Is Tetra Tech a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Tetra Tech’s revenue to decline 1.7% year on year to $1.04 billion, a reversal from the 8.6% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.31 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Tetra Tech has a history of exceeding Wall Street’s expectations, beating revenue estimates every single time over the past two years by 5.2% on average.
Looking at Tetra Tech’s peers in the industrial & environmental services segment, some have already reported their Q1 results, giving us a hint as to what we can expect. CECO Environmental delivered year-on-year revenue growth of 39.9%, beating analysts’ expectations by 17%, and UniFirst reported revenues up 1.9%, in line with consensus estimates. CECO Environmental traded up 23.9% following the results while UniFirst was down 1.7%.
Read our full analysis of CECO Environmental’s results here and UniFirst’s results here.
There has been positive sentiment among investors in the industrial & environmental services segment, with share prices up 11.2% on average over the last month. Tetra Tech is up 9.9% during the same time and is heading into earnings with an average analyst price target of $39 (compared to the current share price of $31).
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