The chart below shows how TTEK performed 10 days before and after its earnings report, based on data from the past quarters. Typically, TTEK sees a -1.94% change in stock price 10 days leading up to the earnings, and a +1.03% change 10 days following the report. On the earnings day itself, the stock moves by -0.91%. This data can give you a slight idea of what to expect for the next quarter's release.
Positive
Record Quarterly Revenue Growth: Net revenue reached a record $1.2 billion for Q1, an 18% increase year-over-year, marking the highest quarterly revenue in the company's history.
Record Operating Income Growth: Operating income for the quarter was $138 million, reflecting a 24% increase from the previous year, also setting a new record for Q1.
Earnings Per Share Surge: Earnings per share increased by 25% year-over-year to $0.35, exceeding both internal guidance and market consensus.
Record Backlog Growth: Backlog grew to an all-time high of $5.44 billion, up 15% from the same quarter last year, indicating strong future revenue potential.
Government Services Revenue Surge: The Government Services Group segment achieved a revenue increase of 36% year-over-year, surpassing $600 million for the first time, driven by significant work in Ukraine.
Negative
USAID Contract Delays Impact Revenue: USAID contracts have been put on hold for up to 90 days, which could significantly impact revenue projections, with a potential reduction of $200 million in expected work for the fiscal year.
Margin Decrease Analysis: The Government Services Group's margin decreased to 13.9% due to lower-margin contracts related to Ukraine, compared to a potential margin of 15.4% without this work.
USAID Revenue Decline: The company anticipates a significant decline in USAID revenue, projecting a drop of one-third to one-half from previous forecasts, indicating a substantial risk to overall revenue.
Litigation Settlement Impact: A one-time charge related to litigation settlement has materially impacted Q1 earnings, although it is expected not to affect future results significantly.
Federal Contract Uncertainty: The uncertainty surrounding federal contracts and potential changes in funding priorities could lead to a volatile operating environment, raising concerns about future revenue stability.
Earnings call transcript: Tetra Tech Q1 2025 beats EPS forecast, stock dips
TTEK.O
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