Tetra Tech reports best ever quarterly results
US-based consultancy and engineering firm Tetra Tech reported its best ever quarterly earnings last week, sending its share price sharply up at the end of the week. The company, which provides project management and other services in the areas of water, environment, infrastructure, resource management, energy and international development, for the US government and other clients, managed to continue its winning streak into the second quarter of 2019.
Tetra Tech’s share price surged on the back of its best-ever quarter
Source: Yahoo Finance
Tetra Tech managed to beat analysts’ expectations on revenue and earnings, much to investors delight. The company also revealed it has a backlog of $2.81 billion on its books (that’s year on year growth of 12%), setting it up for continued strong performance.
For the three months just gone, Tetra Tech generated $727.4 million. Strip out subcontractor costs, and you get an adjusted net revenue of $590.1 million. That’s 10.8% higher against the second quarter of 2018, and a pretty easy beat against the Street’s expectations of $553.3 million. The company also beat on earnings, returning 70c per share. That’s 6c above consensus estimates, and a 29.6% jump against the year-ago quarter.
The president, chairman, and CEO, Dan Batrack, told analysts on an earnings call: “Tetra Tech achieved its best quarterly results in the company's history, with all-time high quarterly net revenue, earnings per share, cash from operations and we ended the quarter with the highest backlog ever in the history of the company. These results significantly exceeded our expectations on what we believed was a very aggressive plan we had coming into the quarter and was actually the result of a broad-based performance across all of our operations. Our leading with science, solution-oriented approach to consulting and with our diverse portfolio of clients is resulting in both a competitive advantage and strong financial performance.”
Dominion holds Tetra Tech in its Global Trends Managed Fund.
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