Tetra Tech, Inc

Tetra Tech, Inc. (TTEK - Analyst Report) has surprised analysts for the fourth time in the past four quarters. The company also built up a record backlog of business and has recently acquired three firms to support the added business.

Company Description

Tetra Tech, Inc. provides environmental engineering and consulting services to several public and private sector clients. The company is based in Pasadena, California, carries a market cap of $1.7 billion, and employs approximately 8,500 people.

Quarterly Results Well Above Guidance

Tetra Tech, Inc announced third-quarter results on July 30th which surpassed guidance in several key areas. Net Revenue was $332.3 million, up 29.6% year-over-year from $256.3 million.

The largest gains were seen in government and commercial business which had year-over-year increases of 34% and 36%, respectively. Heavier workloads by government agencies and several wind power projects were the source of the additional business.

The impressive growth translated to earnings per share of 27 cents, up 28.6% from 21 cents in the same quarter last year. The EPS announcement beat the consensus estimate, which was 24 cents, by 12.5%. This was the fourth earnings surprise in as many quarters, each averaging 10.3%

New Contracts Yield Record Backlog

Since the beginning of the year, Tetra Tech has announce almost a dozen contracts and projects that may value over $5 billion when completed. Most has been awarded from the United States Air Force and Navy.

The company now has a backlog of $1.57 billion a company record and up 29.3% year-over-year.

Tetra Bolsters Services Available Through Acquisition

Tetra Tech completed the acquisition of three firms that will contribute to several areas including the services offered to the US Agency for Internal Development. The consulting and engineering companies have a total annual revenue of approximately $20 million.

The Chart

Shares of TTEK set a new 52-week high of $30.00 per share shortly after the July 30th earnings announcement. The stock has pulled back slightly and is currently trading in a tight channel between just above $29 and just below $28. Take a look at the chart below.