Tetra Tech Q2 Profit Rises

(RTTNews) - Technical, engineering, and consulting service provider Tetra Tech, Inc. (TTEK), on Wednesday said its profit for the second quarter rose over 15 percent, notwithstanding a decline in revenues. Looking ahead the company detailed some soft outlook for the third quarter, while lifting its earnings forecast for the full year.

Tetra Tech reported second quarter net income attributable to the company of $31.7 million, an increase from $24.8 million in the prior year quarter. Earnings rose 26.3 percent to $0.48 per share from $0.38 per share in the same quarter last year. On average, ten analysts polled by Thomson Reuters expected earnings of $0.39 per share for the quarter. Analysts' estimates typically exclude one-time items.

The company's second-quarter revenue declined to $586.3 million from $642.0 million in the corresponding quarter last year.

Revenue, net of subcontractor costs, was $456.0 million, compared to $521.0 million a year ago. Nine analysts had a consensus revenue estimate of $491.75 million for the quarter.

Nonetheless, operating income for the quarter improved 22.6 percent to $46.2 million from $37.7 million last year.

Tetra Tech had a backlog of $1.8 billion at the end of the second quarter.

Tetra Tech is involved in providing consulting, engineering, program management, construction management, and technical services for water, environment, energy, infrastructure, and natural resources sectors.

On April 28, 2014, Tetra Tech declared an initial quarterly dividend of $0.07 per share payable on June 4, 2014 to stockholders of record as of May 16, 2014.

Looking ahead, Tetra Tech expects third-quarter earnings in the range of $0.39 to $0.44 per share. Revenue, net of subcontractor costs, for the third quarter is anticipated to range from $475 million to $525 million.

Analysts currently expect Tetra Tech to report earnings of $0.46 per share on revenues of $545.33 million for the third quarter.

The company also raised it earnings guidance for fiscal year 2014, to range from $1.75 to $1.85 per share. Cash earnings guidance remains unchanged at $2.30 to $2.60 per share. The company had previously projected full-year earnings in the range of $1.60 to $1.80 per share, with cash earnings ranging between $2.30 and $2.60 per share.

Revenue, net of subcontractor costs, for full year 2014 is now expected to range from $1.9 billion to $2.0 billion due to adverse foreign exchange translation, reduced wind revenue and lower U.S. federal bookings. Revenues were previously projected in a range of $2.1 billion to $2.3 billion.

Analysts currently expect the company to report full-year earnings of $1.75 per share on revenues of $2.15 billion.

Analysts currently anticipate earnings of $1.78 per share for the year, on revenues of $2.12 billion.

Tetra Tech closed Wednesday's regular trade at $28.67, down $0.25 or 0.86%, on a volume of 0.34 million shares on the Nasdaq. In after-hours, the stock gained $0.15 or 0.17%, to trade at $28.72.