Tetra Tech reports solid second quarter results
Engineering company Tetra Tech reported second quarter results that exceeded its own guidance in May. The company said that revenue for the three months ended April 1 totaled $700 million, a 5% increase from the previous year. Earnings per share came in at $0.54, a 13% rise from the previous year. In light of this strong performance, Tetra Tech increased its guidance – a move that always plays well with investors, and sent the share price up.
Tetra Tech’s share price has been on a tear over the past 5 days
Source: Yahoo Finance
Tetra Tech’s CEO, Dan Batrack, explained how strongly the company had performed in the quarter via a comment in the company’s earning call:
“Tetra Tech had a very strong second quarter and record first half of the year results, exceeding the high end of our guidance range for both net revenue and earnings. Our broad-based growth has been led by work for U.S. state and local clients, which has increased organically at a double-digit rate for seven consecutive quarters, including 30% growth in the second quarter. With the recent 2018 U.S. Federal spending bill in place, we have more visibility for the remainder of 2018. Given the strength of our results and outlook, we are increasing our guidance for both EPS and net revenue for fiscal 2018.”
In light of the strong results, Tetra Tech is increasing its full year guidance for net revenue to between $2.15 billion and $2.62 billion – the midpoint of which represents an 8% year on year rise. It similarly raised its outlook on earnings per share and now expects it to come somewhere between $2.50 and $2.62 for the full year.
Dominion holds Tetra Tech in its Global Trends Managed Fund.
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