Tetra Tech (TTEK, Financial) reported impressive second-quarter financial results, with revenue surging to $1.32 billion, surpassing the $1.04 billion expected by analysts. The company's performance was driven by robust growth in its State and Local, U.S. Commercial, and International segments. These gains more than compensated for the revenue dip due to USAID's reorganization.
TTEK's success can be attributed to strong demand for its specialized Leading with Science® services, particularly in water and environmental sectors. The company has also enhanced its offerings with strategic acquisitions in digital technology and program management, broadening its global reach.
Reflecting confidence in its future, TTEK has increased its dividend by 12% and expanded its stock buyback program by $500 million. With record achievements so far and a positive outlook, the company has raised its fiscal year 2025 guidance for both net revenue and earnings per share (EPS).
Wall Street Analysts Forecast
Based on the one-year price targets offered by 5 analysts, the average target price for Tetra Tech Inc (TTEK, Financial) is $39.00 with a high estimate of $49.00 and a low estimate of $31.00. The average target implies an upside of 26.25% from the current price of $30.89. More detailed estimate data can be found on the Tetra Tech Inc (TTEK) Forecast page.
Based on the consensus recommendation from 7 brokerage firms, Tetra Tech Inc's (TTEK, Financial) average brokerage recommendation is currently 2.1, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Tetra Tech Inc (TTEK, Financial) in one year is $36.87, suggesting a upside of 19.36% from the current price of $30.89. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Tetra Tech Inc (TTEK) Summary page.
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