Tetra Tech Inc (TTEK - Free Report) reported fourth-quarter earnings of 39 cents per share (excluding one-time items), beating the Zacks Consensus Estimate of 36 cents. However, earnings during the quarter were lower than the prior-year earnings of 47 cents a share.
Total revenue in the reported quarter was down 2.9% to $698.4 million from $719.4 million in the prior-year period. Revenues, net of subcontractor costs, were $531.5 million compared with $536.3 million in the year-earlier quarter. However, revenues were well ahead of the Zacks Consensus Estimate of $519 million.
Backlog was $1.91 billion at the end of the reported quarter, reflecting a 10.7% decline from a backlog of $2.14 billion in the prior-year quarter.
Tetra Tech generated cash from operations of $22.5 million compared with $29.8 million in the fourth quarter of 2012.
Following the earnings release, management provided guidance for the first quarter and full year 2014. Tetra Tech expects earnings for the first quarter of fiscal 2014 to be in the range of 35 cents to 40 cents a share. Revenues, net of subcontractor costs, for the first quarter, are expected to range from $440 million to $500 million.
For fiscal 2014, Tetra Tech expects earnings to be in the range of $1.60 to $1.80 per share. Revenues, net of subcontractor costs, for fiscal 2014 are expected to range from $2.1 billion to $2.3 billion.
Along with the earnings release, Tetra Tech received a contract from Chevron Mining Inc. The financial details of the contract were not disclosed but the scope of the contract requires Tetra Tech to provide Engineering, Procurement and Construction services (EPC). Per the contract, Tetra is required to provide EPCservices for a new water treatment plant to support the Questa Mine Site based in Taos, New Mexico.
Tetra Tech has a Zacks Rank #4 (Sell), which is not a good investment option at the moment. However, other stocks worth considering at the moment are Sharp Compliance Corp. (SMED - Free Report) , Perma-Fix Environmental Services Inc. and Quanta Services Inc. (PWR - Free Report) . Sharp Compliance has a Zacks Rank #1 (Strong Buy), while Perma-Fix Environmental Services and Quanta carry a Zacks Rank #2 (Buy).