Back to top

Analyst Blog

On Apr 8, 2013, the California-based consulting, engineering and technical service provider company Tetra Tech Inc. (TTEK - Analyst Report) revealed its lower earnings expectation for the second half of fiscal 2013. The primary reason behind this projection is the company’s poor performance in Eastern Canada.

Earlier, Tetra Tech estimated its revenue to be in the range of $500 million to $550 million for the second quarter net of subcontractor cost. Although the company reaffirmed this guidance, it anticipates a lower figure for the second half of the year. On the whole, the weak business in the Canadian regions and poor performance in the mining segment are expected to impact the operating income by $20 to $30 million.

Tetra Tech derives a major portion of its revenue from U.S. federal government agencies. The current economic condition is largely responsible for reduction in revenue from the U.S. federal government. Moreover, a delay in the U.S. government’s budget process and a deficit budget impacted procurement of its services and have left an adverse impact on its future revenues. In addition, there has been an ongoing government investigation into corruption charges pertaining to the political sphere in Quebec. This is also delaying the company’s revenue recovery process and adversely affecting its results.

This news caused had its strong adverse impact on the company’s share price. In trading on Tuesday, shares of Tetra Tech, fell below its 200 day moving average of $27.13, by 6.8% to as low as $26.35 per share. Tetra Tech currently has a Zacks Rank #3 (Hold). Other companies in the industry that are worth considering include Calgon Carbon Corporation(CCC - Analyst Report), CECO Environmental Corp. (CECE - Snapshot Report) and Fuel-Tech, Inc. (FTEK - Snapshot Report), all having a Zacks Rank #2 (Buy).

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
ERBA DIAGNO… ERB 3.80 +7.04%
TRAVELCENTE… TA 11.84 +6.38%
BANCO DO BR… BDORY 14.74 +5.66%
AIR INDUSTR… AIRI 9.99 +4.15%
EQT MIDSTRM… EQM 98.14 +3.38%