Tetra Tech (NASDAQ:TTEK) Shares Gap Up Following Strong Earnings

Tetra Tech, Inc. (NASDAQ:TTEK) shares gapped up prior to trading on Thursday after the company announced better than expected quarterly earnings. The stock had previously closed at $37.61, but opened at $41.38. Tetra Tech shares last traded at $39.0140, with a volume of 1,210,116 shares changing hands.

The industrial products company reported $0.49 earnings per share for the quarter, topping analysts’ consensus estimates of $0.47 by $0.02. Tetra Tech had a net margin of 8.60% and a return on equity of 22.32%. The business had revenue of $1.34 billion during the quarter, compared to the consensus estimate of $1.15 billion. During the same period in the previous year, the firm posted $0.45 earnings per share. Tetra Tech’s revenue for the quarter was up 15.2% compared to the same quarter last year.

Tetra Tech Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Friday, December 11th. Shareholders of record on Wednesday, December 2nd will be issued a dividend of $0.0720 per share. This represents a $0.29 dividend on an annualized basis and a yield of 0.7%. The ex-dividend date of this dividend is Wednesday, December 2nd. Tetra Tech’s payout ratio is currently 17.47%.

Tetra Tech News Summary

Investors following TTEK have been watching these news items:

• Positive Sentiment: Fiscal Q4 adjusted EPS was $0.49, above the $0.47 consensus, and revenue reached $1.34 billion. Revenue rose 15.2% year over year, and the company highlighted record results and a strong backlog. Tetra Tech Q4 results
• Neutral Sentiment: Robert W. Baird raised its price target from $37 to $40 but kept a “neutral” rating, indicating a more favorable valuation view without an outright bullish call. Baird analyst ratings
• Neutral Sentiment: Tetra Tech declared a quarterly dividend of $0.072 per share, payable December 11 to shareholders of record December 2. The annualized yield is about 0.8%, a modest income component. Dividend announcement

Wall Street Analysts Forecast Growth

TTEK has been the topic of several recent research reports. KeyCorp restated an “overweight” rating and issued a $41.00 price target (down from $43.00) on shares of Tetra Tech in a research report on Thursday, October 15th. Weiss Ratings upgraded Tetra Tech from a “hold (c)” rating to a “hold (c+)” rating in a report on Tuesday, October 27th. Wall Street Zen downgraded Tetra Tech from a “buy” rating to a “hold” rating in a report on Saturday, October 17th. Royal Bank Of Canada cut their target price on Tetra Tech from $46.00 to $44.00 and set an “outperform” rating on the stock in a research note on Thursday, October 15th. Finally, Robert W. Baird raised their target price on Tetra Tech from $37.00 to $40.00 and gave the stock a “neutral” rating in a report on Thursday. Four investment analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company. According to data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average target price of $39.60.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently modified their holdings of the company. Evelyn Partners Investment Management Services Ltd bought a new position in shares of Tetra Tech during the 1st quarter worth approximately $35,000. Mather Group LLC. raised its holdings in shares of Tetra Tech by 562.0% in the 3rd quarter. Mather Group LLC. now owns 1,377 shares of the industrial products company’s stock valued at $45,000 after purchasing an additional 1,169 shares during the period. Clal Insurance Enterprises Holdings Ltd lifted its position in shares of Tetra Tech by 531.1% in the third quarter. Clal Insurance Enterprises Holdings Ltd now owns 1,502 shares of the industrial products company’s stock valued at $49,000 after buying an additional 1,264 shares during the last quarter. Root Financial Partners LLC bought a new position in Tetra Tech during the third quarter worth $64,000. Finally, Signaturefd LLC grew its stake in Tetra Tech by 65.0% in the 3rd quarter. Signaturefd LLC now owns 1,990 shares of the industrial products company’s stock valued at $66,000 after buying an additional 784 shares during the last quarter. 93.89% of the stock is owned by institutional investors and hedge funds.

Tetra Tech Stock Up 3.0%

The company has a debt-to-equity ratio of 0.43, a current ratio of 1.18 and a quick ratio of 1.18. The company has a market cap of $9.92 billion, a price-to-earnings ratio of 23.40 and a beta of 0.86. The firm has a 50-day moving average price of $35.94 and a 200 day moving average price of $33.25.

About Tetra Tech

Tetra Tech, Inc. is a consulting and engineering services company founded in 1966. It works with government and commercial clients on projects involving water, the environment, infrastructure, energy, and resource management. The company provides services across the project lifecycle, including planning, consulting, engineering, design, and program and construction management. Its work includes water supply and wastewater systems, environmental assessment and remediation, infrastructure development, and climate resilience.