Published on 2 May 2024 on Zacks via Yahoo Finance

Tetra Tech (TTEK) Beats on Q2 Earnings, Raises 2024 Guidance

Tetra Tech, Inc. TTEK reported second-quarter fiscal 2024 (ended Mar 31, 2024) adjusted earnings of $1.42 per share, which surpassed the Zacks Consensus Estimate of $1.31. The bottom line surged 21.4% year over year driven by strong momentum in each of its segments.The bottom line also surpassed management’s projection of earnings of $1.25-$1.35 per share.

Revenue & Segmental Performance

Tetra Tech generated adjusted revenues of $1.3 billion, reflecting a year-over-year increase of 8.1%. Adjusted net revenues (adjusted revenues minus subcontractor costs) were $1.1 billion, up 9% year over year. The quarterly top line surpassed the management’s guidance of $990 million-$1.04 billion.Tetra Tech’s revenues exceeded the Zacks Consensus Estimate of $1.0 billion.The backlog at the end of the fiscal quarter was $4.7 billion, up 24% year over year.Revenues from U.S. Federal customers (accounting for 31% of the quarter’s revenues) were up 14% year over year, supported by higher federal environmental sales. U.S. Commercial sales (17% of the quarter’s revenues) decreased 2% year over year due to environmental remediation timing.U.S. State and Local sales (11% of the quarter’s revenues) increased 14% year over year, driven by strength in advanced water treatment. International sales (41% of the quarter’s revenues) were up 17% year over year, backed by increased U.K. water planning and design sales.Tetra Tech reports revenues under the segments discussed below:Net sales of the Government Services Group segment were $466 million, up 15% year over year. The Zacks Consensus Estimate for the segment’s revenues was $429 million. Revenues from the Commercial/International Services Group segment totaled $586 million, representing a year-over-year increase of 10%. The consensus estimate for the segment’s revenues was $601 million.