Tetra Tech (TTEK) delivered better-than-expected fiscal Q4 2021 as earnings, revenue, and backlogs increased to all-time highs. Revenue and earnings also topped consensus estimates, as the company enjoyed strong demand for its high-end water and environmental consulting services. TTEK shares rose 0.97% to close at $183.65 on November 17.
Tetra Tech is a consulting services company that operates through Government Services Group (GSG), Commercial and International Services Group (CIG), and Remediation and Construction Management (RCM).
Tetra Tech Q4 Results
The record quarterly results were characterized by an 18% year-over-year increase in revenue to $892 million, exceeding consensus estimates of $674.5 million. Net revenue increased 20% year-over-year to $709 million.
Tetra Tech’s adjusted earnings per share (EPS) increased 15% year-over-year to $1.05, beating consensus estimates of $1.00. Cash generated from operations increased 15% compared to the same quarter last year, to $78 million. Additionally, the company ended the quarter with a record backlog of $3.48 billion, up 7% from the same quarter last year. (See Top Smart Score Stocks on TipRanks)
Outlook and Cash Distribution
For Fiscal Q1 2022, Tetra Tech expects EPS to range between $0.98 and $1.03. Net revenue is expected to range between $630 million and $680 million. For the full-year, it is projecting EPS of between $4.00 and $4.20, while the consensus estimate stands at $4.11. Net revenue is projected to stand between $2.60 billion and $2.80 billion, while consensus estimate stands at $2.68 billion.
Tetra Tech’s board of directors has approved an 18% year-over-year increase in the dividend to $0.20 per share, payable on December 20, 2021, to stockholders on record as of December 2, 2021. In addition, the board has approved a $400 million increase to the share repurchase program. At the end of the quarter, the company had about $548 million available for stock buybacks.
In October, Maxim Group analyst Tate Sullivan reiterated a Buy rating on the stock and raised the price target to $185 from $162, implying shares are fully valued at current levels.
Consensus among analysts is a Strong Buy, based on 3 Buys and 1 Hold. The average Tetra Tech price target of $176 implies 4.17% downside potential to current levels.