Tetra Tech expects Q4 net revenue between $1.12 bln and $1.17 bln
Company sees Q4 EPS between $0.45 and $0.48
Tetra Tech raises FY26 adjusted EPS guidance to $1.56-$1.59
Company narrows FY26 net revenue guidance to $4.315 bln-$4.365 bln
Overview
US engineering services firm's Q3 revenue beat analyst expectations
EPS for Q3 was $0.42; backlog rose 5% sequentially
Company raised FY26 guidance and repurchased $100 mln in stock
Result Drivers
Federal and international growth - Co said Q3 growth was primarily driven by double-digit increases in U.S. federal and international end markets
New orders - Significant new orders, including commercial contracts for data center and sediment restoration projects, contributed to backlog increase
Strong cash flow - Management attributed record cash flow to ability to generate more cash than net income, supporting acquisitions, buybacks, and dividends
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the environmental services & equipment peer group is "buy"
Wall Street's median 12-month price target for Tetra Tech Inc (Delaware) is $42.00, about 25.3% above its July 28 closing price of $33.51
The stock recently traded at 20 times the next 12-month earnings vs. a P/E of 19 three months ago
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