The 10-second takeaway
For the quarter ended April 1 (Q2), Tetra Tech beat slightly on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew and GAAP earnings per share expanded significantly.
Gross margins dropped, operating margins increased, net margins increased.
Tetra Tech logged revenue of $476.9 million. The 16 analysts polled by S&P Capital IQ looked for revenue of $471.8 million on the same basis. GAAP reported sales were 11% higher than the prior-year quarter's $430.3 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.35. The 15 earnings estimates compiled by S&P Capital IQ predicted $0.33 per share. GAAP EPS of $0.35 for Q2 were 25% higher than the prior-year quarter's $0.28 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 7.5%, 990 basis points worse than the prior-year quarter. Operating margin was 7.5%, 70 basis points better than the prior-year quarter. Net margin was 4.7%, 60 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $529.2 million. On the bottom line, the average EPS estimate is $0.44.
Next year's average estimate for revenue is $2.08 billion. The average EPS estimate is $1.62.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 409 members rating the stock outperform and 13 members rating it underperform. Among 104 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 102 give Tetra Tech a green thumbs-up, and two give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Tetra Tech is outperform, with an average price target of $28.07.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.