Tetra Tech (NASDAQ: TTEK) reported Q3 EPS of $0.71, $0.06 better than the analyst estimate of $0.65. Revenue for the quarter came in at $765 million versus the consensus estimate of $541.66 million

• Record revenue of $765 million, up 12% Y/Y
• Record net revenue of $570 million, up 14% Y/Y
• Record operating income of $55 million, up 21% Y/Y
• EPS $0.59; Record ongoing EPS $0.71, up 34% Y/Y

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Comments on Results

Tetra Tech’s Chairman and CEO, Dan Batrack, commented, “Tetra Tech generated record third quarter results, exceeding the high end of our guidance range for both net revenue and earnings. We continue to see momentum in our broad-based growth, led by work for U.S. state and local clients, which has increased organically at a double-digit rate for eight consecutive quarters, including 26% growth in the third quarter. Our other key end-markets, including U.S. Federal, Commercial, and International, grew 10% or more. Given the strength of our results and outlook, we are increasing our guidance for both EPS and net revenue for fiscal 2018.”

Business Outlook

The following statements are based on current expectations. These statements are forward-looking and the actual results could differ materially. These statements do not include the potential impact of transactions that may be completed or developments that become evident after the date of this release. The Business Outlook section should be read in conjunction with the information on forward-looking statements at the end of this release.

Tetra Tech expects ongoing EPS for the fourth quarter of fiscal 2018 to range from $0.70 to $0.75. Net revenue for the fourth quarter is expected to range from $550 million to $575 million. For fiscal 2018, Tetra Tech is increasing guidance and now expects ongoing EPS to range from $2.59 to $2.64 and net revenue to range from $2.20 billion to $2.22 billion.

GUIDANCE:

Tetra Tech sees FY2018 EPS of $2.59-$2.64. Tetra Tech sees FY2018 revenue of $2.2-2.22 billion.

For earnings history and earnings-related data on Tetra Tech (TTEK) click here.