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Tetra Tech (TTEK) Announces Its Financial Outlook for FY20

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Tetra Tech, Inc. (TTEK - Free Report) , on Jun 9, 2020, provided its outlook for the third quarter (ending June 2020) and fiscal 2020 (ending September 2020). Notably, its share price decreased 0.5% yesterday, ending the trading session at $80.70.

Inside the Headlines

Tetra Tech currently anticipates fiscal third-quarter adjusted earnings per share of 72-75 cents, whereas it reported 73 cents in the fiscal second quarter (ended March 2020). Notably, the Zacks Consensus Estimate for earnings is pegged at 69 cents for the fiscal third quarter, which suggests a year-over-year decline of 22.5%.

Also, for the fiscal third quarter, the company expects net revenues (adjusted revenues minus subcontractor costs) of $540-$560 million. Notably, it recorded $584 million in the last reported quarter. The consensus mark for net revenues is currently pegged at $564.4 million for the fiscal third quarter, which suggests a decline of 9.4% from the year-ago reported figure.

For fiscal 2020, Tetra Tech projects adjusted earnings per share of $3.05-$3.13, whereas it reported $3.17 in fiscal 2019 (ended September 2019). Net revenues are anticipated to be $2.3-$2.4 billion, suggesting a year-over-year decline of 0.4-4.6%.

It is worth mentioning here that on its last earnings call, the company withdrew its previously announced revenue and earnings guidance for fiscal 2020 on uncertainties, regarding the impacts of the coronavirus outbreak on financial and operating results.

Apart from this, the company communicated that at the end of the fiscal second quarter, it had available liquidity of $774 million (including cash and cash equivalents of $135 million, and $639 million of borrowings available under its credit facility) and net debt leverage ratio of 0.8x. In addition, the company noted that through the first two months of the fiscal third quarter, it generated cash in excess of $50 million from operating activities.

Zacks Rank, Price Performance and Estimate Trend

Tetra Tech, with a $4.4-billion market capitalization, currently carries a Zacks Rank #3 (Hold).

In the past three months, the company’s shares have returned 13.5% compared with the industry’s growth of 19.2%.

 


 

Analysts have become increasingly bearish about Tetra Tech over the past 60 days. The company’s earnings estimates for fiscal 2020 have decreased from $3.32 to $3.05 on four downward estimate revisions against one upward.

Stocks to Consider

Some better-ranked stocks from the Zacks Industrial Products sector are Intellicheck, Inc. (IDN - Free Report) , Alcoa Corporation (AA - Free Report) and Broadwind Energy Inc. (BWEN - 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.

Intellicheck delivered a positive earnings surprise of 70.24%, on average, in the trailing four quarters.

Alcoa delivered a positive earnings surprise of 12.78%, on average, in the trailing four quarters.

Broadwind delivered a positive earnings surprise of 50.00%, on average, in the trailing four quarters.

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