Tetra Tech sets new records with third quarter earnings
Water engineering company Tetra Tech set new records for itself last week, when it released its third quarter earnings report. The company saw revenue of $685 million for the quarter, a 3% rise from the same quarter in the previous year. Operating income rose 17% year-over-year to $46 million, a new (third quarter) record for the company. Earnings per share also set a new record for the third quarter, coming in at $0.52, an 18% rise from the year-ago quarter.
However, it is perhaps the third and final record-setting metric that matters the most: Tetra Tech has a backlog of $2.53 billion currently on its books – 12% higher than at the same point in 2016 – which bodes very well for the company’s future.
Tetra Tech’s chairman and CEO, Dan Batrack, said: “Tetra Tech generated record-high third quarter earnings, operating income, and backlog. Our U.S. federal and U.S. state and local markets continued to grow at double-digit organic rates in the third quarter, with revenues increasing 10% and 16%, respectively. Conversely, our oil and gas markets, particularly in Canada, have become increasingly challenged. Despite the downturn in this market, our backlog reached a record high of $2.5 billion, up 12% year-over-year, giving us confidence that growth will continue across our other end markets.”
The company said its expects to see earnings per share in the range of $0.60 to $0.62 for its fourth quarter, and net revenue between $500 million and $520 million. For the full year, Tetra Tech expects earnings per share of $2.10 to $2.12, and net revenue of $2 billion to $2.02 billion.
Dominion holds Tetra Tech in its Global Trends Managed Fund.
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