Tetra Tech Gets Cheap TTEK
Tetra Tech, which provides consulting, technical and engineering services, posted a strong quarter for the period ending April 30. The company does work like its recent contract to help rebuild police facilities for the Irac Recontruction Work, and its Base Realignment and Closure work for the U.S. military. These contracts to build and reconstruct facilities are often worth tens of millions of dollars.
Revenue rose to $318.9 million from $297.5 million. Net income was $9 million. A year ago the net loss was $123.8 million due to "a non-cash impairment charge in the second quarter of fiscal 2005 of $105.6 million for goodwill and other identifiable
intangible assets". The company's backlog at the end of Q2 was $941 million up from $869 million at the end of the immediately previous quarter.
Tetra Tek guided that revenue in the next quarter, net of subcontractor costs, would be between $230 and $240 compared to $237.7 in the current quarter.
After the news, First Analyst Securites upgraded the stock to "overweight".
After a solid year in the fiscal that ended in September 2004 when the company did $1.376 billion, up 26% from the previous year, the fiscal ending September 2005 slowed, with revenue at only $1.286 billion. But, revenue in the last four quarters has picked up, and the company has shown an operating profit in each one.
The company has a $1 billion market cap, so it trades at about one time sales.
Tetra Tek's business in environmental restoration has legs as concerns about this issue continue to climb in the U.S. and the developing countries.
The stock is up to $17.68 from its 52-week low of $11.84. But, the stock traded at nearly $28 in early 2004.
It could go there again.
Douglas A. McIntyre is the former Editor-in-Chief and Publisher of Financial World Magazine. He is also the former president of Switchboard.com, which was the 10th most visited site in the world at the time, according to MediaMetrix. He has been chief executive of FutureSource LLC and On2 Technologies, Inc. and has served on the boards of TheStreet.com and Edgar Online. He does not own securities in companies he writes about. He can be reached at douglasamcintyre@gmail.com.
Revenue rose to $318.9 million from $297.5 million. Net income was $9 million. A year ago the net loss was $123.8 million due to "a non-cash impairment charge in the second quarter of fiscal 2005 of $105.6 million for goodwill and other identifiable
intangible assets". The company's backlog at the end of Q2 was $941 million up from $869 million at the end of the immediately previous quarter.
Tetra Tek guided that revenue in the next quarter, net of subcontractor costs, would be between $230 and $240 compared to $237.7 in the current quarter.
After the news, First Analyst Securites upgraded the stock to "overweight".
After a solid year in the fiscal that ended in September 2004 when the company did $1.376 billion, up 26% from the previous year, the fiscal ending September 2005 slowed, with revenue at only $1.286 billion. But, revenue in the last four quarters has picked up, and the company has shown an operating profit in each one.
The company has a $1 billion market cap, so it trades at about one time sales.
Tetra Tek's business in environmental restoration has legs as concerns about this issue continue to climb in the U.S. and the developing countries.
The stock is up to $17.68 from its 52-week low of $11.84. But, the stock traded at nearly $28 in early 2004.
It could go there again.
Douglas A. McIntyre is the former Editor-in-Chief and Publisher of Financial World Magazine. He is also the former president of Switchboard.com, which was the 10th most visited site in the world at the time, according to MediaMetrix. He has been chief executive of FutureSource LLC and On2 Technologies, Inc. and has served on the boards of TheStreet.com and Edgar Online. He does not own securities in companies he writes about. He can be reached at douglasamcintyre@gmail.com.
posted by douglas mcintyre at 8:38 AM
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