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Tetra Tech (TTEK) Wins $300M Contract From Federal Client
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Tetra Tech, Inc. (TTEK - Free Report) yesterday announced that it secured a contract from the U.S. Department of Defense (“DoD”) for providing advanced analytics and high-end consulting services.
The multiple-award contract has been valued at $300 million. The aforementioned contract will help Tetra Tech strengthen its existing business with the federal agency.
Per the contract, the company’s services will enable the DoD to solidify its ties with important partners across the globe. Notably, the first task (valued at $117 million) for Tetra Tech will be to provide its advanced analytics to the DoD and thus help in spotting performance indicators.
We believe that order wins, especially from the U.S. federal government agencies or related institutions, will be beneficial for the company in the quarters ahead. At the end of the first quarter of fiscal 2020 (ended December 29, 2019), it had solid backlog of $3,165.8 million, reflecting year-over-year growth of 13.3%.
Of several contracts, Tetra Tech secured a $125-million contract from the United States Postal Services in March 2020. Also, it secured a $21-million contract from the Office of Science and Technology of the U.S. Environmental Protection Agency in December 2019. The same month, the company secured a $45-million contract from the U.S. Army Corps of Engineers, Transatlantic Middle East District.
In October 2019, the company received a $40-million contract from the USACE and a $500-million contract from the U.S. Agency for International Development.
For fiscal 2020 (ending September 2020), Tetra Tech anticipates sales from the U.S. federal clients to increase 5-10% on growth in the U.S. federal budget.
Zacks Rank, Price Performance and Earnings Estimates
Currently, the company has a market capitalization of $4.4 billion and a Zacks Rank #4 (Sell). Tetra Tech gains from acquired assets, shareholder-friendly policies and solid backlog level. However, woes related to the U.S. federal business, high costs, geopolitical issues and unfavorable movements in foreign currencies remain concerning.
In the past three months, Tetra Tech’s share price has decreased 12.5% compared with the industry’s decline of 19%.
Also, the company’s earnings estimates for fiscal 2020 and fiscal 2021 (ending September 2021) have been revised downward in the past 60 days, reflecting bearish sentiments about its growth prospects. Currently, the Zacks Consensus Estimate for its earnings is pegged at $3.36 for fiscal 2020 and $3.60 for fiscal 2021, mirroring declines of 4.3% and 5.3% from the respective 60-day-ago figures.
Some better-ranked stocks in the Zacks Industrial Products sector are Sharps Compliance Corp. , Tennant Company (TNC - Free Report) and CECO Environmental Corp. . While both Sharps Compliance and Tennant sport a Zacks Rank #1 (Strong Buy), CECO Environmental carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
In the past 30 days, earnings estimates for these companies have been unchanged for the current year. Further, positive earnings surprise for the last reported quarter was 100% for Sharps Compliance, 6.67% for Tennant and 92.86% for CECO Environmental.
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This outperformance has not just been a recent phenomenon. From 2000 – 2019, while the S&P averaged +6.0% per year, our top strategies averaged up to +54.7% per year.
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Tetra Tech (TTEK) Wins $300M Contract From Federal Client
Tetra Tech, Inc. (TTEK - Free Report) yesterday announced that it secured a contract from the U.S. Department of Defense (“DoD”) for providing advanced analytics and high-end consulting services.
The multiple-award contract has been valued at $300 million. The aforementioned contract will help Tetra Tech strengthen its existing business with the federal agency.
Per the contract, the company’s services will enable the DoD to solidify its ties with important partners across the globe. Notably, the first task (valued at $117 million) for Tetra Tech will be to provide its advanced analytics to the DoD and thus help in spotting performance indicators.
We believe that order wins, especially from the U.S. federal government agencies or related institutions, will be beneficial for the company in the quarters ahead. At the end of the first quarter of fiscal 2020 (ended December 29, 2019), it had solid backlog of $3,165.8 million, reflecting year-over-year growth of 13.3%.
Of several contracts, Tetra Tech secured a $125-million contract from the United States Postal Services in March 2020. Also, it secured a $21-million contract from the Office of Science and Technology of the U.S. Environmental Protection Agency in December 2019. The same month, the company secured a $45-million contract from the U.S. Army Corps of Engineers, Transatlantic Middle East District.
In October 2019, the company received a $40-million contract from the USACE and a $500-million contract from the U.S. Agency for International Development.
For fiscal 2020 (ending September 2020), Tetra Tech anticipates sales from the U.S. federal clients to increase 5-10% on growth in the U.S. federal budget.
Zacks Rank, Price Performance and Earnings Estimates
Currently, the company has a market capitalization of $4.4 billion and a Zacks Rank #4 (Sell). Tetra Tech gains from acquired assets, shareholder-friendly policies and solid backlog level. However, woes related to the U.S. federal business, high costs, geopolitical issues and unfavorable movements in foreign currencies remain concerning.
In the past three months, Tetra Tech’s share price has decreased 12.5% compared with the industry’s decline of 19%.
Also, the company’s earnings estimates for fiscal 2020 and fiscal 2021 (ending September 2021) have been revised downward in the past 60 days, reflecting bearish sentiments about its growth prospects. Currently, the Zacks Consensus Estimate for its earnings is pegged at $3.36 for fiscal 2020 and $3.60 for fiscal 2021, mirroring declines of 4.3% and 5.3% from the respective 60-day-ago figures.
Tetra Tech, Inc. Price and Consensus
Tetra Tech, Inc. price-consensus-chart | Tetra Tech, Inc. Quote
Key Picks
Some better-ranked stocks in the Zacks Industrial Products sector are Sharps Compliance Corp. , Tennant Company (TNC - Free Report) and CECO Environmental Corp. . While both Sharps Compliance and Tennant sport a Zacks Rank #1 (Strong Buy), CECO Environmental carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
In the past 30 days, earnings estimates for these companies have been unchanged for the current year. Further, positive earnings surprise for the last reported quarter was 100% for Sharps Compliance, 6.67% for Tennant and 92.86% for CECO Environmental.
Today's Best Stocks from Zacks
Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2019, while the S&P 500 gained and impressive +53.6%, five of our strategies returned +65.8%, +97.1%, +118.0%, +175.7% and even +186.7%.
This outperformance has not just been a recent phenomenon. From 2000 – 2019, while the S&P averaged +6.0% per year, our top strategies averaged up to +54.7% per year.
See their latest picks free >>