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Tetra Tech (TTEK) Clinches $25 Million Contract From DOEE

Zacks Equity Research

Tetra Tech, Inc. TTEK has secured a $25-million contract from the District of Columbia’s (DC) Department of Energy and Environment (“DOEE”). Per the five-year agreement, the company will be responsible for offering technical support services to DOEE for assessment and remediation of contaminated sediments in Anacostia River’s tidal areas.

Also, Tetra Tech will support DC government’s work in restoring the surrounding areas of the river to create a more sustainable environment. The company will outline the sediment contaminated areas in Anacostia River, and will also work on designing the remedy with the help of predictive modeling, data analytics and field sampling. Moreover, the deal will involve the company to perform risk assessment and remedial activities at sites all through Washington, DC.

Our Take

Tetra Tech remains bullish about its growth across all four client sectors, namely, U.S. federal, U.S. state and local, the U.S. commercial and finally international. Based on growth rate forecast for the U.S. federal markets, the company expects sales from these markets to grow at a rate of 5% for fiscal 2019.

Moreover, in a bid to maximize growth prospects, Tetra Tech is currently focusing on high-end consulting and engineering services that is helping it promote its high value and high margin business, thus differentiating it from peers in the marketplace.

In the past six months, the company has returned 9.8% against the industry’s decline of 2.3%.

In addition, Tetra Tech expects that solid opportunities across the globe will boost its international revenues. For fiscal 2019, the company expects a 10% growth rate with its international clients, particularly in Canada and Asia Pacific region. In addition, infrastructure and industrial work in Canada, and commercial and environmental programs in the United States are likely to supplement the company’s top line.

Zacks Rank & Other Key Picks

Tetra Tech currently carries a Zacks Rank #2 (Buy). Some other top-ranked stocks from the same space are Chart Industries, Inc. GTLS, CECO Environmental Corp. CECE and iRobot Corporation IRBT. While Chart Industries sports a Zacks Rank #1 (Strong Buy), CECO Environmental and iRobot carry a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Chart Industries pulled off a positive average earnings surprise of 15.65% in the trailing four quarters.

CECO Environmental delivered a positive average earnings surprise of 25.00% in the trailing four quarters.

iRobot pulled off a positive average earnings surprise of 96.73% in the trailing four quarters.

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