PASADENA, Calif. - Tetra Tech , Inc. (NASDAQ: NASDAQ:TTEK), a leader in consulting and engineering services, reported a robust second quarter with earnings surpassing analyst expectations.
The company announced a second-quarter adjusted EPS of $1.42, which was $0.13 higher than the analyst estimate of $1.29. Net revenue for the quarter also exceeded forecasts, coming in at $1.05 billion against the consensus estimate of $1.03 billion, marking a 9% increase YoY.
The company's EBITDA saw a significant rise of 28% YoY to reach $135 million, while the adjusted EPS climbed 34% YoY. This financial performance is complemented by the largest second-quarter backlog in the company's history, totaling $4.74 billion, an 11% increase YoY. The firm's cash flow from operations also grew by 17% YoY to $103 million.
Despite the positive earnings report, Tetra Tech's stock experienced a slight decline of 1.8%. The absence of a specific driver for the move suggests that market reactions may be influenced by broader market conditions or investor expectations.
Looking ahead, Tetra Tech has raised its full-year guidance for fiscal 2024, now expecting an adjusted EPS in the range of $6.15 to $6.25, which is above the analyst consensus of $6.06. The company's revenue guidance for the fiscal year has also been increased to a range of $4.21 to $4.31 billion, with the midpoint slightly below the consensus estimate of $4.25 billion. For the third quarter of fiscal 2024, the company anticipates an adjusted EPS between $1.50 and $1.55, compared to the consensus of $1.52, and revenue projections of $1.05 to $1.1 billion, with the midpoint below the consensus of $1.07 billion.
Dan Batrack, Chairman and CEO of Tetra Tech, attributed the strong quarter to increased profitability and a record backlog, stating, "With increased profitability and record second quarter backlog, we are raising our full year guidance for net revenue and earnings, which represents forecasted EPS growth of 22% for fiscal 2024."
The company's commitment to sustainability was also highlighted with the release of its 2024 Sustainability Report on Earth Day, showing progress towards environmental, social, and governance goals.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.