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Tetra Tech Secures $300M Multiple-Award Contract From NASA

Zacks Equity Research

Tetra Tech, Inc. TTEK recently clinched a $300-million multiple-award contract from the National Aeronautics and Space Administration (“NASA”). Per the five-year contract, Tetra Tech will offer engineering and architectural services for probing, designing and implementing remedial actions at the NASA Kennedy Space Center and Cape Canaveral Air Force Station, based in Florida.

Notably, Tetra Tech will be responsible for providing engineering and environmental assessment services. These include regulatory documentation, remedial design, contaminant investigation, as well as groundwater and soil remediation. As a matter of fact, the latest deal will further enhance the company’s long-standing partnership with NASA.

Existing Business Scenario

In a bid to maximize growth prospects, Tetra Tech is currently focusing on high-end consulting and engineering services that are helping it promote its high value and high margin business. This is differentiating it from other players in the market.

In the past month, this Zacks Rank #2 (Buy) company has returned 9.8%, outperforming the industry’s average growth of 6.1%.

Based on continued execution of its business model, Tetra Tech remains bullish about its growth prospects across all four client sectors, namely, U.S. federal, U.S. state and local, the U.S. commercial and international.  The company’s U.S. state and local clients — in both municipal water and disaster response recovery services domains — are expected to be a strong growth driver for the upcoming quarters.

Moreover, the company believes lucrative opportunities across the globe will continue to boost its international revenues. In fiscal 2019, Tetra Tech expects a 10% growth rate in its international client base, particularly in Canada and Asia Pacific region. Notably, revenue growth across these regions will be driven by infrastructure programs as well as industrial consulting and design work. In addition, higher infrastructure-related spending in Australia is anticipated to be key catalysts for international revenues in fiscal 2019.

Other Stocks to Consider

Some other top-ranked stocks from the Zacks Industrial Products sector are Axon Enterprise, Inc AAXN, Roper Technologies, Inc. ROP and Sharps Compliance Corp SMED. While Axon Enterprise sports a Zacks Rank #1 (Strong Buy), Roper Technologies and Sharps Compliance carry a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Axon Enterprise surpassed estimates in each of the trailing four quarters, the average positive earnings surprise being 391.67%.

Roper Technologies outpaced estimates in each of the preceding four quarters, the average earnings surprise being 4.96%.

Sharps Compliance’s earnings surprise in the last reported quarter was a positive 66.67%.

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