Environmental engineering firm Tetra Tech (NASDAQ: TTEK) will be reporting earnings this Wednesday after market close. Here’s what investors should know.
Tetra Tech beat analysts’ revenue expectations by 2.1% last quarter, reporting revenues of $1.15 billion, up 3.9% year on year. It was a slower quarter for the company, with revenue guidance for next quarter missing analysts’ expectations significantly and a significant miss of analysts’ backlog estimates.
Is Tetra Tech a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting Tetra Tech’s revenue to decline 8.2% year on year to $1.05 billion, a reversal from the 8.2% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.40 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Tetra Tech has a history of exceeding Wall Street’s expectations, beating revenue estimates every single time over the past two years by 3.7% on average.
Looking at Tetra Tech’s peers in the industrial & environmental services segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Driven Brands delivered year-on-year revenue growth of 6.6%, meeting analysts’ expectations, and CECO Environmental reported revenues up 45.8%, topping estimates by 3.6%. Driven Brands traded up 1.9% following the results while CECO Environmental was down 9.8%.
Read our full analysis of Driven Brands’s results here and CECO Environmental’s results here.
Investors in the industrial & environmental services segment have had fairly steady hands going into earnings, with share prices down 1.3% on average over the last month. Tetra Tech is down 6.9% during the same time and is heading into earnings with an average analyst price target of $41.80 (compared to the current share price of $32.18).
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