Market Overview

Earnings Outlook for Tetra Tech

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Tetra Tech (NASDAQ: TTEK) will be releasing its next round of earnings this Wednesday, November 11. For all of the relevant information, here is your guide for Wednesday's Q4 earnings announcement.

What Are Earnings, Net Income, And Earnings Per Share?

Earnings and EPS are useful metrics of profitability. Total earnings also known as net income is equal to total revenue minus total expenses. Dividing net income by the total number of shares outstanding yields EPS.

Earnings And Revenue

Based on Tetra Tech management projections, analysts predict EPS of $0.81 on revenue of $588.73 million. Tetra Tech EPS in the same period a year ago totaled $0.88. Sales were $640.18 million.

Why Analyst Estimates And Earnings Surprises Are Important

Wall Street analysts who study this company will publish analyst estimates of revenue and EPS. The averages of all analyst EPS and revenue estimates are called the "consensus estimates"; these consensus estimates can have a significant effect on a company's performance during an earnings release. When a company posts earnings or revenue above or below a consensus estimate, it has posted an "earnings surprise", which can really move a stock depending on the difference between actual and estimated values.

If the company were to match the consensus estimate, earnings would be down 7.95%. Sales would be down 8.04% on a year-over-year basis. In comparison to analyst estimates in the past, here is how the company's reported EPS stacks up:

Quarter Q3 2020 Q2 2020 Q1 2020 Q4 2019
EPS Estimate 0.72 0.72 0.76 0.84
EPS Actual 0.78 0.73 0.84 0.88
Revenue Estimate 555.94 M 599.79 M 611.55 M 636.89 M
Revenue Actual 560.28 M 584.46 M 614.02 M 640.18 M

Stock Performance

Shares of Tetra Tech were trading at $113.63 as of November 09. Over the last 52-week period, shares are up 31.24%. Given that these returns are generally positive, long-term shareholders should be satisfied going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Tetra Tech is scheduled to hold the call at 11:00:00 ET and can be accessed here.

 

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Posted-In: Earnings