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Tetra Tech (TTEK) Wins $90M Contract From U.S. Air Force

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Tetra Tech, Inc. (TTEK - Free Report) announced that it secured a $90-million contract from the U.S. Air Force. The multiple-award deal will involve the premier consulting and engineering services firm to offer environmental engineering support services to installations throughout Africa and Europe.

Per the deal, Tetra Tech will be responsible for offering the U.S. European Command and the U.S. Africa Command with its technical support services. Notably, this will help in addressing the Air Force’s key environmental needs, including compliance, conservation, prevention of pollution, and operations and maintenance actions.

Several services to be performed by the company include carrying out risk assessments, performing advanced data analytics and preparing remedial designs. Notably, it will work on incorporating various sustainability elements into its project designs, which include energy efficiency, renewable energy and water conservation. This will likely support several environmental programs like air, drinking water, solid waste and waste management among others.

We believe that large order wins 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 strong backlog of $3,165.8 million, reflecting year-over-year growth of 13.3%.

Some of the notable contracts clinched by the company recently include a $300-million contract from the U.S. Department of Defense for providing advanced analytics and high-end consulting services (in April 2020), and a $125-million deal from the United States Postal Services (in March 2020). In addition, it secured a $45-million contract from the U.S. Army Corps of Engineers, Transatlantic Middle East District, in December 2019. In the same month, the company secured a $21-million contract from the Office of Science and Technology of the U.S. Environmental Protection Agency.

Zacks Rank, Price Performance and Earnings Estimates

Currently, Tetra Tech has a market capitalization of $4.2 billion and a Zacks Rank #4 (Sell). The company gains from its solid backlog level, acquisitions and shareholder-friendly policies. However, headwinds related to the U.S. federal business, geopolitical issues and high costs remain concerning.

In the past six months, its share price has decreased 13.6% compared with the industry’s decline of 19.6%.

 


 

In the past 30 days, the Zacks Consensus Estimate for its earnings has been lowered by 4.3% to $3.36 for fiscal 2020 and by 5.3% to $3.60 for fiscal 2021.

Stocks to Consider

Some better-ranked stocks from the Zacks Industrial Products sector are Acco Brands Corporation (ACCO - Free Report) , Alarm.com Holdings, Inc. (ALRM - Free Report) and Berry Global Group, Inc. (BERY - Free Report) . All the companies currently carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Acco Brands delivered a positive earnings surprise of 19.04%, on average, in the trailing four quarters.

Alarm.com delivered a positive earnings surprise of 19.30%, on average, in the trailing four quarters.

Berry Global delivered a positive earnings surprise of 0.26%, on average, in the trailing four quarters.

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