Tetra Tech, Inc. ( TTEK Quick Quote TTEK - Free Report) received a task order worth $22.4 million from the U.S. Department of Labor, Bureau of Labor Statistics (“BLS”). The task order is applicable for the coming five years. In the last trading session, the company’s shares declined 0.39%, ending the trading session at $162.08. Inside the Headlines
As noted, technology solution experts of Tetra Tech will offer their services to the BLS Office of Compensation and Working Conditions on various employee metrics. Service offerings will include advanced data analytics, software development, and database design.
The task order comes under the purview of Tetra Tech’s multiple-award contract worth $169 million. Per the contract, Tetra Tech is required to provide multiple services, including agile software development, information engineering, and enterprise architecture, to the BLS. We believe that the task order will help Tetra Tech strengthen its existing business with the federal agency. In the quarters ahead, orders, especially those awarded by the U.S. federal government agencies or related institutions, are likely to be beneficial for Tetra Tech. The company’s backlog was solid at $3,249.9 million at the end of the third quarter of fiscal 2021 (ended June 2021). Notably, Tetra Tech was awarded a $19.5-million food innovation hub contract from the U.S. Agency for International Development (“USAID”) this month. The contract is valid for four years. This is the seventh deal awarded to the company by the USAID since the beginning of calendar 2021. In September, Tetra Tech secured an $800-million five-year contract from the USAID. Per the multiple-award contract, the company’s prime responsibility will be to provide architect-engineer services to the federal agency. Further, Tetra Tech secured a $49-million coastal geospatial contract from the National Oceanic and Atmospheric Administration. For fiscal 2021 (ended September 2021, results are awaited), Tetra Tech anticipates net revenues from the U.S. federal clients to gain from enhanced analytics used in the environmental programs. It anticipates year-over-year net revenues growth of 10-15% sourced from the federal clients. Net revenues are predicted to be $2.50-$2.55 billion for fiscal 2021, while its adjusted earnings are anticipated to be $3.69-$3.74 per share. For the fiscal fourth quarter, the company expects net revenues and adjusted earnings of $650-$700 million and 95 cents to $1.00 per share, respectively. Zacks Rank, Price Performance and Earnings Estimates
Tetra Tech, with an $8.8-billion market capitalization, currently carries a Zacks Rank #3 (Hold). The company is poised to benefit from a healthy backlog level, a diversified business structure, buyouts, and shareholder-friendly policies. High costs are concerning.
In the past three months, Tetra Tech’s share price has increased 33.4% compared with the industry’s growth of 11.7%.
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In the past 60 days, the company’s earnings estimates for the fourth quarter of fiscal 2021 have been unchanged at 99 cents. In the same timeframe, the consensus estimate for fiscal 2021 and fiscal 2022 (ending September 2022) has been unchanged at $3.70 and $3.94 per share, respectively.