Environmental engineering firm Tetra Tech (NASDAQ: TTEK) will be reporting results this Wednesday after market close. Here’s what investors should know.
Tetra Tech beat analysts’ revenue expectations by 6.6% last quarter, reporting revenues of $1.10 billion, up 4.9% year on year. It was a strong quarter for the company, with an impressive beat of analysts’ EPS guidance for next quarter estimates and full-year revenue guidance exceeding analysts’ expectations.
Is Tetra Tech a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Tetra Tech’s revenue to grow 1.7% year on year to $1.13 billion, slowing from the 12.4% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.38 per share.
The majority of analysts covering the company have 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 3.8% on average.
Looking at Tetra Tech’s peers in the business services & supplies segment, some have already reported their Q2 results, giving us a hint as to what we can expect. UniFirst delivered year-on-year revenue growth of 1.2%, missing analysts’ expectations by 0.6%, and Cintas reported revenues up 8%, topping estimates by 1.6%. UniFirst traded down 8.1% following the results while Cintas was up 3.7%.
Read our full analysis of UniFirst’s results here and Cintas’s results here.
There has been positive sentiment among investors in the business services & supplies segment, with share prices up 2.3% on average over the last month. Tetra Tech is up 4.4% during the same time and is heading into earnings with an average analyst price target of $42 (compared to the current share price of $37.56).
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