Tetra Tech (TTEK) Secures $48M Five-Year Contract From USAID

Tetra Tech, Inc. (NASDAQ:TTEK) recently clinched a $48-million contract from the U.S. Agency for International Development (“USAID”). Per the five-year deal, the premier consulting and engineering services firm, will support USAID’s Clean Cities Blue Ocean program, intended to lower and stop marine debris pollution in oceans by targeting ocean plastics at their source in towns and cities.

Notably, the company will be responsible for building capacity to upgrade waste management practices with the help of advanced reuse and recycling strategies, particularly in developing nations. Also, Tetra Tech will work on boosting local and regional markets for recycled plastic. Moreover, the deal will involve the company to come up with sustainable technology solutions that would support collection and aggregation of waste data and change in recycling behaviors. In addition, it will work hand in hand with USAID to develop global support to prevent marine debris.

Tetra Tech has secured multiple government contracts in the past few years, which has significantly supplemented its top line. At the end of third quarter of fiscal 2019 (ended Jun 30, 2019), total backlog from ongoing operations – which is the best indicator of future revenue streams – grew 16.4% year over year to a record level of $2,834 million.

For the rest of fiscal 2019 (ending September 2019), Tetra Tech believes that the U.S. state and local business will benefit from growth in disaster response and recovery planning as well as the broad-based infrastructure business, in turn, booting revenues. International revenues are predicted to increase for the rest of the year while modest rise is expected from U.S. federal customers. For fiscal 2019, the company anticipates net revenues of $2.37-$2.41 billion, higher than the previously stated $2.3-$2.4 billion.

In addition, the company’s shares have had a solid run in recent times, owing to its impressive top-line growth and accretive acquisitions. Over the past six months, the company's shares have recorded an impressive rally of 43.4%, outperforming the industry’s growth of 16.3%.

Zacks Rank & Other Stocks to Consider

Tetra Tech currently carries a Zacks Rank #2 (Buy). Some other top-ranked stocks from the Zacks Industrial Products sector are Cimpress N.V (NASDAQ:CMPR) , Chart Industries, Inc. (NASDAQ:GTLS) and Brady Corporation (NYSE:BRC) . While Cimpress and Chart Industries sport a Zacks Rank #1 (Strong Buy), Brady carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Cimpress’ earnings surprise in the last reported quarter was 137.04%.

Chart Industries delivered average positive earnings surprise of 12.96% in the trailing four quarters.

Brady pulled off average positive earnings surprise of 9.68% in the trailing four quarters.

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