Tetra Tech, Inc. Revenue & Segmental Performance

Financial Breakdown
Tetra Tech, Inc. TTEK reported fourth-quarter fiscal 2023 (ended Oct 1, 2023) adjusted earnings of $1.78 per share, which surpassed the Zacks Consensus Estimate of earnings of $1.45 per share. The bottom line surged 41.3% year over year driven by strong momentum in all segments.

The bottom line also surpassed management’s projection of earnings of $1.43-$1.48 per share.

Revenue & Segmental Performance
In the fiscal fourth quarter, Tetra Tech generated adjusted revenues of $1,260.6 million, reflecting a year-over-year increase of 39.7%. Adjusted net revenues (adjusted revenues minus subcontractor costs) were $1,057.4 million, up 43.6% year over year. The quarterly top line came above management’s guidance of $965-$1,015 million.

Revenues from U.S. Federal customers (accounting for 29% of the quarter’s revenues) were up 46% year over year, supported by federal IT growth. U.S. Commercial sales (19% of the quarter’s revenues) increased 13% year over year on higher clean Energy and Environmental services sales.

U.S. State and Local sales (12% of the quarter’s revenues) increased 15%, due to strength in digital water and resilience planning. International sales (40% of the quarter’s revenues) increased 78% year over year, backed by higher infrastructure sales.

Fiscal 2024 Outlook
For fiscal 2024 (ending September 2024), Tetra Tech anticipates net revenues to be $4.05-$4.25 billion. The midpoint of the guided range — $4.15 billion.

For the first quarter of fiscal 2024 (ending December 2024), management estimates net revenues to be $950-$1000 million.

Price Momentum
TTEK is trading near the top of its 52-week range and above its 200-day simple moving average.

What does this mean?
Investors have been pushing the share price higher, and the stock still appears to have upward momentum. This is a positive sign for the stock's future value.