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Tetra Tech (TTEK) Clinches $46 Million Contract from USAID
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Tetra Tech, Inc. (TTEK - Free Report) continues to support the U.S. Agency for International Development’s (USAID) work in Central America. The company has clinched a $46-million contract from the USAID to deliver key municipal services and improve governance in Guatemala.
Under the contract, Tetra Tech will deliver key municipal services like improvements in small-scale infrastructure for urban municipalities in Guatemala. In addition, the company will aid the USAID in boosting the capability of municipal governments in Guatemala to respond to citizens’ needs.
Tetra Tech will be working with the government of Guatemala and local civic groups in order to strengthen public financial systems. Also, the company will help develop service delivery plans for local governments to endorse better governance practices in the area.
Tetra Tech will lend technical assistance and resources to set up services and upgrade existing infrastructure, including parks, water systems, community centers and sanitation facilities.
The company has won several government contracts in the past few years, which have significantly supplemented its top line. During the recently reported first-quarter fiscal 2017 results, the company’s total backlog from ongoing operations (which is the best indicator of future revenue streams) reached a record high of $2.5 billion. The figure reflects striking growth of 37% year over year, driven by robust orders in the federal, and state and local markets.
Tetra Tech’s shares have had a solid run in recent times, owing to its impressive contract wins, restructuring efforts and accretive acquisitions. Over the past one year, the company’s shares recorded a remarkable return of 44.6%, outperforming the Zacks categorized Pollution Control industry’s average gain of 34.5%.
We believe that Tetra Tech has a solid base for growth, supported by its strong backlog levels, along with a robust pipeline with major government organizations like the U.S. Department of State, U.S. Army Corp. of Engineers and U.S. Air Force awarding it billion-dollar deals.
In fact, Tetra Tech is quite bullish about its end market prospects in 2017. The company expects the U.S. state and local clients, in both municipal water and smart water services domains, to be its strongest growth drivers in the upcoming quarters.
Furthermore, the company has not missed earnings estimates for the trailing 10 quarters, which is an impressive feat. In the fiscal first quarter, Tetra Tech’s earnings beat the Zacks Consensus Estimate by 4.3% and climbed 17% from the prior-year tally. Sturdy top-line growth and improved operating efficiency drove earnings growth. The company’s consistent cost control and productivity improvements also contributed to the quarter’s solid earnings.
Tetra Tech, Inc. Price, Consensus and EPS Surprise
However, Tetra Tech’s revenues and profitability have been periodically affected by concerns including decreased consumer confidence, lingering effects of international conflicts, energy costs and inflation. In addition, demand for Tetra Tech’s services is cyclical, and vulnerable to economic downturns, and reductions in government and private industry spending. Further, the company’s growth remains dependent on crucial factors like economic growth, government fiscal conditions and client spending, which can harm its operations if they take a turn for the worse.
Despite such headwinds, we believe that this Zacks Rank #3 (Hold) company has several growth drivers in place for the upcoming quarters.
Barnes Group has a solid earnings surprise history for the trailing four quarters, having beaten estimates thrice, for an average beat of 4.4%.
Altra Industrial has a positive earnings surprise history, with an average of 12.5% for the trailing four quarters, beating estimates all through.
Applied Industrial Technologies has managed to beat estimates thrice in the past four quarters, for a positive earnings surprise of 6.2%.
Zacks' 2017 IPO Watch List
Before looking into the stocks mentioned above, you may want to get a head start on potential tech IPOs that are popping up on Zacks' radar. Imagine being in the first wave of investors to jump on a company with almost unlimited growth potential? This Special Report gives you the current scoop on 5 that may go public at any time.
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Tetra Tech (TTEK) Clinches $46 Million Contract from USAID
Tetra Tech, Inc. (TTEK - Free Report) continues to support the U.S. Agency for International Development’s (USAID) work in Central America. The company has clinched a $46-million contract from the USAID to deliver key municipal services and improve governance in Guatemala.
Under the contract, Tetra Tech will deliver key municipal services like improvements in small-scale infrastructure for urban municipalities in Guatemala. In addition, the company will aid the USAID in boosting the capability of municipal governments in Guatemala to respond to citizens’ needs.
Tetra Tech will be working with the government of Guatemala and local civic groups in order to strengthen public financial systems. Also, the company will help develop service delivery plans for local governments to endorse better governance practices in the area.
Tetra Tech will lend technical assistance and resources to set up services and upgrade existing infrastructure, including parks, water systems, community centers and sanitation facilities.
The company has won several government contracts in the past few years, which have significantly supplemented its top line. During the recently reported first-quarter fiscal 2017 results, the company’s total backlog from ongoing operations (which is the best indicator of future revenue streams) reached a record high of $2.5 billion. The figure reflects striking growth of 37% year over year, driven by robust orders in the federal, and state and local markets.
Tetra Tech’s shares have had a solid run in recent times, owing to its impressive contract wins, restructuring efforts and accretive acquisitions. Over the past one year, the company’s shares recorded a remarkable return of 44.6%, outperforming the Zacks categorized Pollution Control industry’s average gain of 34.5%.
We believe that Tetra Tech has a solid base for growth, supported by its strong backlog levels, along with a robust pipeline with major government organizations like the U.S. Department of State, U.S. Army Corp. of Engineers and U.S. Air Force awarding it billion-dollar deals.
In fact, Tetra Tech is quite bullish about its end market prospects in 2017. The company expects the U.S. state and local clients, in both municipal water and smart water services domains, to be its strongest growth drivers in the upcoming quarters.
Furthermore, the company has not missed earnings estimates for the trailing 10 quarters, which is an impressive feat. In the fiscal first quarter, Tetra Tech’s earnings beat the Zacks Consensus Estimate by 4.3% and climbed 17% from the prior-year tally. Sturdy top-line growth and improved operating efficiency drove earnings growth. The company’s consistent cost control and productivity improvements also contributed to the quarter’s solid earnings.
Tetra Tech, Inc. Price, Consensus and EPS Surprise
Tetra Tech, Inc. Price, Consensus and EPS Surprise | Tetra Tech, Inc. Quote
However, Tetra Tech’s revenues and profitability have been periodically affected by concerns including decreased consumer confidence, lingering effects of international conflicts, energy costs and inflation. In addition, demand for Tetra Tech’s services is cyclical, and vulnerable to economic downturns, and reductions in government and private industry spending. Further, the company’s growth remains dependent on crucial factors like economic growth, government fiscal conditions and client spending, which can harm its operations if they take a turn for the worse.
Despite such headwinds, we believe that this Zacks Rank #3 (Hold) company has several growth drivers in place for the upcoming quarters.
Stocks to Consider
Better-ranked stocks in the broader sector include Barnes Group, Inc. (B - Free Report) , Altra Industrial Motion Corp. and Applied Industrial Technologies Inc. (AIT - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
Barnes Group has a solid earnings surprise history for the trailing four quarters, having beaten estimates thrice, for an average beat of 4.4%.
Altra Industrial has a positive earnings surprise history, with an average of 12.5% for the trailing four quarters, beating estimates all through.
Applied Industrial Technologies has managed to beat estimates thrice in the past four quarters, for a positive earnings surprise of 6.2%.
Zacks' 2017 IPO Watch List
Before looking into the stocks mentioned above, you may want to get a head start on potential tech IPOs that are popping up on Zacks' radar. Imagine being in the first wave of investors to jump on a company with almost unlimited growth potential? This Special Report gives you the current scoop on 5 that may go public at any time.
One has driven from 0 to a $68 billion valuation in 8 years. Four others are a little less obvious but already show jaw-dropping growth. Download this IPO Watch List today for free >>