LONDON, UK / ACCESSWIRE / February 20, 2018 / Active-Investors.com has just released a free earnings report on Tetra Tech, Inc. (NASDAQ: TTEK). If you want access to this report all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=TTEK. The Company reported its financial results on January 31, 2018, for the first quarter ended December 31, 2017. Operationally, the Company achieved the highest revenue for any quarter in its history. The Company's Q1 2018 results indicate an excellent beginning to the fiscal year 2018. Register today and get access to over 1000 Free Research Reports by joining our site below:
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Earnings Highlights and Summary
For the first quarter of the fiscal year 2018, Tetra Tech's total revenues reached $759.75 million, up 13.59% from $668.85 million in Q1 FY17. The Company's revenues for ongoing operations totaled $752.94 million in Q1 FY18 compared to $660.62 million in Q1 FY17. Tetra Tech's revenues net of subcontractor costs was $544.85 million for the reported quarter, an increment of 11.30% from $489.55 million in the year earlier same quarter. The Company's net revenue figures were above analysts' consensus estimates of $511.9 million. The Company's US clients led this growth, especially its state and local clients, commercial accounts, and federal work.
Tetra Tech's reported income from operations advanced 21.91% to $48.59 million in Q1 FY18 from $39.86 million in Q1 FY17. On an ongoing basis, the Company's operating income increased 15.97% to $49.75 million y-o-y. The ongoing operating margin also jumped to 9.1% in Q1 FY18 from 8.8% in Q1 FY17.
Tetra Tech's net income attributable to common shareholders increased 73.31% to $46.03 million, or $0.81 per share, in Q1 FY18 from $26.56 million, or $0.46 per share, in Q1 FY17. Tetra Tech's reported quarter results included a one-time benefit from revaluing deferred tax liabilities as a result of the new US tax reform enacted in December 2017. Tetra Tech's adjusted earnings per share (EPS) from ongoing operations were $0.65 in the quarter under review, 32.65% up from $0.49 in the year earlier comparable quarter. The Company's adjusted EPS were higher than analysts' consensus estimates of $0.52 per share.
At the end of Q1 FY18, the backlog was $2.43 billion, 1.65% lower than $2.47 billion in Q1 FY17.
Segment Details
During Q1 FY18, Tetra Tech's Government Services Group (GSG) segment's revenues, net of sub-contractor costs, were $309.97 million, an increase of 20.53% y-o-y. For the first quarter of 2018, the segment's ongoing income from operations improved 29.69% to $39.12 million from $30.17 million for the same period of the previous year. The GSG segment's ongoing operating margin also improved to 12.6% in Q1 FY18 from 11.7% in Q1 FY17.
For Q1 FY18, Tetra Tech's Commercial/International Services Group (CIG) segment's revenues, net of sub-contractor costs, were $233.73 million, a y-o-y increase of 1.36%. Environmental projects contributed to sales growth, which was partially offset by sluggish oil and gas markets. For the first quarter of 2018, the segment's ongoing income from operations decreased 1.16% to $21.29 million from $21.54 million for the comparable period of the previous year. The CIG segment's ongoing operating margin also declined to 9.1% in Q1 FY18 from 9.3% in Q1 FY17.
Cash Matters
As on December 31, 2017, Tetra Tech had cash and cash equivalents of $173 million, up from $127 million as on December 31, 2016. The Company's net cash used by operating activities was $66.5 million for Q1 FY18 compared to $58.7 million for the corresponding period of the previous year. The Company's net debt jumped 5.25% to $274.9 million in Q1 FY18 from $261.2 million in Q1 FY17. The Company's days sales outstanding (DSO) was 85.4 days for the quarter under review compared to 86.8 days in Q1 FY17.
Tetra Tech closed acquisitions of Glumac and BridgeNet YTD FY18. Besides, the Company announced the acquisition of NDY, which is expected to close in Q2 FY18.
During Q1 FY18, Tetra Tech repurchased stock for $25 million. As on December 31, 2017, the Company had $75 million remaining under the previously approved $200 million share repurchase program. Tetra Tech paid a dividend of $0.10 per share, or a total of $5.6 million, in the reported quarter. The Company has also declared a quarterly dividend of $0.10 per share, payable on March 02, 2018, to stockholders of record as of February 14, 2018.
Outlook
For the second quarter of 2018, Tetra Tech expects net revenues to be in the range of $490 million to $515 million, and ongoing EPS to be in the band of $0.48 to $0.53.
The Company has increased its guidance for the full fiscal year 2018, and now estimates net revenues to range from $2.10 billion to $2.20 billion, and ongoing EPS to range from $2.40 to $2.60.
Stock Performance Snapshot
February 16, 2018 - At Friday's closing bell, Tetra Tech's stock was slightly up 0.94%, ending the trading session at $48.25.
Volume traded for the day: 231.64 thousand shares.
Stock performance in the last three-month – up 2.12%; previous six-month period – up 19.88%; past twelve-month period – up 13.53%; and year-to-date – up 0.21%
After last Friday's close, Tetra Tech's market cap was at $2.66 billion.
Price to Earnings (P/E) ratio was at 20.15.
The stock has a dividend yield of 0.83%.
The stock is part of the Services sector, categorized under the Technical Services industry.
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