Tetra Tech reports record first-quarter earnings
Global engineering and consultancy business Tetra Tech reported the best first-quarter earnings in its history a few days ago, beating the Street on earnings and displaying a solid underlying business that’s going from strength to strength. The company is a major player (along with Xylem, whose earnings are also covered in another story on today’s newsfeed) in the trend towards water management, environmental sustainability, infrastructural concerns, and more. As climate change continues apace, both companies are positioned to pursue growth while delivering a public good.
Tetra Tech’s share price has grown by 5% so far in 2019
Source: Yahoo Finance
Tetra Tech logged a slight miss on revenue, reporting a figure of $553.36 million for the first quarter of this year. That fell short of analysts’ estimates ($558.46 million), but it’s a decent beat against the first quarter of 2018, when it reported revenues of $544.84 million. When it came to earnings, however, the company outperformed consensus estimates, reporting adjusted earnings per share (EPS) of $0.70 against predictions $0.65. That’s also an 8% increase, year on year.
The company also said operating income was up by 15% against the same period in 2018 to a record $56 million. And it had a record-sized backlog of $2.79 billion, which is also a 15% improvement on the comparable quarter.
The company’s CEO, Dan Batrack, made the following comment over the results: “We had a strong start to fiscal year 2019 with record first quarter performance which exceeded our earnings guidance. We continue to see increasing demand across our end markets for our high-end consulting and engineering services focused on water, renewable energy, and sustainable infrastructure. New project wins in the quarter drove our backlog to an all-time record of $2.79 billion and provides great visibility for the remainder of the fiscal year.”
Dominion holds Tetra Tech in its Global Trends Managed Fund.
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