Tetra Tech, Inc. (TTEK - Free Report) announced that it received two contracts from the U.S. Environmental Protection Agency (EPA). These five-year contracts have been valued at $132 million together.
As noted, the company will provide advisory and technical services to the Superfund Technical Assessment and Response Team’s regions 4 and 5. To elaborate, the services to be offered will include ecological and human health risk assessments, contingency planning, assessments of Superfund and brownfields site, field surveys, mapping, data management, and training.
The services offered by Tetra Tech will enable EPA to effectively deal with natural and man-made disasters.
We believe that order wins from the U.S. federal government agencies will be beneficial for the company in the quarters ahead. At the end of the third quarter of fiscal 2019 (ended Jun 30, 2019), it has solid backlog of $2,834 million, reflecting growth of 16.4% from the year-ago figure.
Tetra Tech won two important contracts in July 2019. Firstly, the company received a $70-million contract from the U.S. Agency for International Development (USAID). Per the contract, Tetra Tech will provide analytical support services to USAID. Secondly, the company was awarded a $46-million contract from the U.S. Army Corps of Engineers, Transatlantic Middle East District (TAM). Per the contract, the company will provide engineering design services to TAM.
Zacks Rank, Price Performance and Earnings Estimates
Tetra Tech, with a market capitalization of $4.3 billion, currently carries a Zacks Rank #2 (Buy). The company gains from strengthening end-market business, acquired assets, lower taxes and shareholder-friendly policies.
In the past three months, Tetra Tech’s share price has gained 19% compared with the industry’s growth of 4.3%.
Also, the company’s earnings estimates for fiscal 2019 (ending September 2019) and fiscal 2020 (ending September 2020) have been revised upward in the past 30 days, reflecting positive sentiments about its growth prospects. Currently, the Zacks Consensus Estimate for its earnings is pegged at $3.06 for fiscal 2019 and $3.42 for fiscal 2020, mirroring growth of 1% and 2.1% from the respective 30-day-ago figures.
Tetra Tech, Inc. Price and Consensus