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

Shares of Tetra Tech, Inc. (NASDAQ:TTEK) gapped up before the market opened on Thursday following a better than expected earnings announcement. The stock had previously closed at $30.88, but opened at $34.27. Tetra Tech shares last traded at $34.10, with a volume of 1,271,700 shares.

The industrial products company reported $0.33 earnings per share for the quarter, beating analysts’ consensus estimates of $0.31 by $0.02. The company had revenue of $1.10 billion during the quarter, compared to the consensus estimate of $1.05 billion. Tetra Tech had a net margin of 4.81% and a return on equity of 22.58%. Tetra Tech’s revenue was up 25.9% on a year-over-year basis. During the same period in the prior year, the company earned $0.28 EPS.

Tetra Tech Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Thursday, June 5th. Stockholders of record on Friday, May 23rd will be given a dividend of $0.065 per share. The ex-dividend date of this dividend is Friday, May 23rd. This is a positive change from Tetra Tech’s previous quarterly dividend of $0.06. This represents a $0.26 dividend on an annualized basis and a dividend yield of 0.73%. Tetra Tech’s payout ratio is 24.21%.

Analysts Set New Price Targets

TTEK has been the topic of a number of analyst reports. Robert W. Baird lifted their price target on Tetra Tech from $31.00 to $33.00 and gave the stock a “neutral” rating in a research note on Thursday. Royal Bank of Canada set a $49.00 target price on shares of Tetra Tech in a research report on Friday, January 31st. KeyCorp upped their price target on shares of Tetra Tech from $34.00 to $41.00 and gave the company an “overweight” rating in a research report on Friday. Finally, Maxim Group cut shares of Tetra Tech from a “strong-buy” rating to a “hold” rating in a research report on Friday, April 4th. Three analysts have rated the stock with a hold rating and two have issued a buy rating to the company’s stock. According to MarketBeat.com, the company presently has an average rating of “Hold” and a consensus target price of $44.15.

Institutional Trading of Tetra Tech

Hedge funds have recently made changes to their positions in the stock. Chilton Capital Management LLC acquired a new position in Tetra Tech in the 1st quarter valued at approximately $25,000. Baillie Gifford & Co. purchased a new position in shares of Tetra Tech during the 1st quarter valued at $27,000. R Squared Ltd acquired a new position in shares of Tetra Tech in the fourth quarter worth $39,000. Asset Planning Inc purchased a new stake in shares of Tetra Tech during the fourth quarter worth $40,000. Finally, Jones Financial Companies Lllp boosted its position in Tetra Tech by 98.0% during the fourth quarter. Jones Financial Companies Lllp now owns 1,000 shares of the industrial products company’s stock valued at $40,000 after purchasing an additional 495 shares during the last quarter. 93.89% of the stock is owned by hedge funds and other institutional investors.

Tetra Tech Stock Up 1.7 %

The company has a debt-to-equity ratio of 0.53, a current ratio of 1.29 and a quick ratio of 1.29. The business has a 50 day simple moving average of $30.07 and a 200 day simple moving average of $36.47. The stock has a market cap of $9.51 billion, a PE ratio of 37.28 and a beta of 0.92.

About Tetra Tech

Tetra Tech, Inc provides consulting and engineering services in the United States and internationally. The company operates through two segments, Government Services Group (GSG) and Commercial/International Services Group (CIG). The GSG segment offers early data collection and monitoring, data analysis and information management, science and engineering applied research, engineering design, project management, and operations and maintenance services; and climate change and energy management consulting, as well as greenhouse gas inventory assessment, certification, reduction, and management services.