Tetra Tech's Q4 Earnings & Revenues Surpass Estimates, Rise Y/Y

Tetra Tech, Inc. TTEK reported fourth-quarter fiscal 2024 (ended Sept. 30, 2024) adjusted earnings of 38 cents per share, which surpassed the Zacks Consensus Estimate of 37 cents. The bottom line surged 15% year over year, driven by the strong momentum in each of its segments.Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.TTEK’s Revenue & Segmental PerformanceTetra Tech generated revenues of $1.37 billion, reflecting a year-over-year increase of 9%. Adjusted net revenues (adjusted revenues minus subcontractor costs) were $1.14 billion, up 8% year over year. The quarterly top line met the upper end of the management’s guided range of $1.09-$1.14 billion.Tetra Tech’s adjusted revenues also exceeded the Zacks Consensus Estimate of $1.13 billion.The backlog at the end of the fiscal fourth quarter was $5.38 billion, up 12% year over year.Tetra Tech, Inc. Price, Consensus and EPS Surprise Tetra Tech, Inc. price-consensus-eps-surprise-chart | Tetra Tech, Inc. QuoteRevenues from U.S. Federal customers (accounting for 33% of the quarter’s revenues) were up 12% year over year, supported by strength across civilian and coastal marine navigation sectors. U.S. Commercial sales (18% of the quarter’s revenues) increased 3% year over year, driven by higher renewable energy and environmental remediation sales.U.S. State and Local sales (12% of the quarter’s revenues) increased 9% year over year, driven by strength in advanced water treatment. International sales (37% of the quarter’s revenues) were up 6% year over year, backed by strength in the infrastructure sector.Tetra Tech reports revenues under the segments discussed below:Net sales of the Government Services Group segment were $513 million, up 12% year over year. Revenues from the Commercial/International Services Group segment totaled $632 million, representing a year-over-year increase of 5%.TTEK's Margin ProfileIn the fiscal fourth quarter, Tetra Tech’s subcontractor costs totaled $230 million, reflecting an increase of 13.2% from the year-ago quarter. Other costs of revenues (adjusted) were $899.2 million, up 6.4% from the fiscal fourth quarter of 2023. Selling, general and administrative expenses (adjusted) were $92.7 million, up 20% from the year-ago fiscal quarter.Operating income increased 33.4% year over year to $143.3 million, while the adjusted margin increased 50 basis points to 13.3%.Tetra Tech’s Balance Sheet and Cash FlowWhile exiting the fiscal fourth quarter, Tetra Tech had cash and cash equivalents of $232.7 million compared with $168.8 million recorded at the end of the fourth quarter of fiscal 2023. Long-term debt was $812.6 million compared with $879.5 million recorded at the end of fourth-quarter fiscal 2023.In fiscal 2024, Tetra Tech generated net cash of $358.7 million from operating activities compared with $368.5 million in the prior fiscal year. Capital expenditure was $18.1 million, down 32.7% year over year. In fiscal 2024, TTEK’s proceeds from borrowings amounted to $217 million, while repayments on long-term debt totaled $287 million.Shareholder-Friendly PoliciesTetra Tech distributed dividends totaling $58.8 million in fiscal 2024. This compares favorably with dividends of $52.1 million distributed in the previous fiscal year. It repurchased shares worth $12.9 million in the same period.TTEK’s Fiscal 2025 OutlookFor fiscal 2025 (ending September 2025), Tetra Tech anticipates net revenues to be in the range of $4.565-$4.765 billion, higher than $4.322 billion reported in fiscal 2024. Adjusted earnings are predicted to be $1.40-$1.50 per share compared with $1.26 reported in fiscal 2024.For the fiscal first quarter (ending December 2024), management estimates net revenues to be in the range of $1.09-$1.15 billion. Adjusted earnings are projected to be in the band of 32-34 cents per share.Zacks Rank & Stocks to ConsiderTTEK currently carries a Zacks Rank #3 (Hold). Here are some better-ranked stocks from the same space:Kadant Inc. KAI presently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.It has a trailing four-quarter average earnings surprise of 17.2%. The Zacks Consensus Estimate for KAI’s 2024 earnings has improved 1.8% in the past 60 days.Atmus Filtration Technologies Inc. ATMU presently has a Zacks Rank of 2 and a trailing four-quarter earnings surprise of 13.8%, on average. The consensus estimate for ATMU’s 2024 earnings has increased 1.3% in the past 60 days.Generac Holdings GNRC presently carries a Zacks Rank of 2. GNRC delivered a trailing four-quarter earnings surprise of 10.8%, on average. The Zacks Consensus Estimate for Generac Holdings’ 2024 earnings has increased 5.1% in the past 60 days.Free: 5 Stocks to Buy As Infrastructure Spending SoarsTrillions of dollars in Federal funds have been earmarked to repair and upgrade America’s infrastructure. In addition to roads and bridges, this flood of cash will pour into AI data centers, renewable energy sources and more.In, you’ll discover 5 surprising stocks positioned to profit the most from the spending spree that’s just getting started in this space.Download How to Profit from the Trillion-Dollar Infrastructure Boom absolutely free today.Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Tetra Tech, Inc. (TTEK): Free Stock Analysis Report Kadant Inc (KAI): Free Stock Analysis Report Generac Holdings Inc. (GNRC): Free Stock Analysis Report Atmus Filtration Technologies Inc. (ATMU): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks