Tetra Tech (NASDAQ: TTEK) reported Q2 EPS of $0.73, $0.02 better than the analyst estimate of $0.71. Revenue for the quarter came in at $734 million versus the consensus estimate of $595.21 million.

• Revenue of $734 million and Net Revenue of $584 million
• EPS $0.66; Adjusted EPS $0.73
• Increased quarterly dividend by 13% to $0.17

Chairman and CEO Comments

Tetra Tech’s Chairman and CEO, Dan Batrack, commented, “We entered 2020 in the best position in the Company’s history, with record backlog from our government and commercial clients for their critical water and environmental programs. For the first five months, we were on pace for another record year. However, the unprecedented disruption of the global economy due to the COVID-19 pandemic has impacted all businesses. Our government business, which represents 60% of our revenue, has been relatively stable, while our commercial business has seen more impact. Much of our commercial business has continued due to regulatory drivers, but we have seen project delays and cancellations in the industrial sectors.”

Further, Mr. Batrack stated, “Our diversified end-markets have allowed us to redeploy staff to areas of uninterrupted or increased demand, and we have made decisions to align our cost structures with certain program delays and cancellations. The actions we have taken to navigate through this worldwide pandemic, our technical leadership, and the strength of our balance sheet position us well to address the global challenges of providing clean water, environment restoration and impacts of climate change.”

Business Outlook

The COVID-19 pandemic impact on our business will largely be dependent on the duration of stay-at-home orders and resulting macroeconomic conditions. Tetra Tech’s financial results for the second half of fiscal 2020 cannot be estimated with enough precision to be reliable at this time. Accordingly, Tetra Tech is withdrawing previously provided fiscal 2020 guidance for net revenue and EPS. The Company may update its outlook if there is improved clarity prior to the end of its third quarter of fiscal 2020.

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