Tetra Tech Q4 Profit Meets View, But Revenues Miss; Guides Q1 EPS Below View

(RTTNews) - Engineering services provider Tetra Tech, Inc. (TTEK) reported Wednesday a profit for the fourth quarter that declined from last year, reflecting lower revenues.

Earnings per share for the quarter matched analysts' expectations, while quarterly revenues missed their estimates. The company also provided earnings and revenue forecast for the first quarter and full-year 2015.

"Tetra Tech's front-end consulting and engineering segments continued to perform well, and were on plan for both the quarter and the year. Profit from the two front-end segments was up more than ten percent year over year, and new orders in the quarter were particularly strong, demonstrating that both our government and commercial end markets are strengthening," Chairman and CEO Dan Batrack said in a statement.

The Pasadena, California-based company reported net income of $22.59 million or $0.35 per share for the fourth quarter, down from $25.20 million or $0.39 per share in the prior-year quarter.

On average, ten analysts polled by Thomson Reuters expected the company to post earnings of $0.35 per share for the quarter. Analysts' estimates typically exclude special items.

Revenues, net of subcontractor costs, for the quarter declined to $462.19 million from $531.55 million in the same quarter last year, and missed eight Wall Street analysts' consensus estimate of $478.61 million.

On Monday, Tetra Tech's Board of Directors declared a quarterly dividend of $0.07 per share, payable on December 15 to stockholders of record as of November 26, 2014. It also authorized a new program to repurchase up to $200 million of common stock over the next two years, following the recently completed $100 million buyback program.

Following a strategic review of its business in the fourth quarter, the company realigned segments to better support markets and focus on its core front-end consulting and engineering business. Beginning in fiscal 2015, the company will report results under the Engineering and Consulting Services (ECS) as well as Technical Support Services (TSS) segments.

Looking ahead to the first quarter, Tetra Tech expects earnings in a range of $0.32 to $0.36 per share, on projected revenues, net of subcontractor costs, between $420 million and $470 million. Analysts currently estimate earnings of $0.37 per share on quarterly revenues of $444.28 million for the quarter.

For fiscal 2015, Tetra Tech expects earnings in a range of $1.55 to $1.75 per share and cash earnings in the range of $2.30 to $2.60 per share, on projected revenues, net of subcontractor costs, between $1.75 billion and $1.95 billion. Street is currently looking for full-year 2014 earnings of $1.65 per share on annual revenues of $1.88 billion.

TTEK closed Wednesday's regular trading session at $26.78, up $0.23 or 0.87% on a volume of 0.44 million shares.