Tetra Tech Inc.
), a leading provider of consulting, engineering, program
management is set to report third-quarter fiscal 2014 results on
Jul 30. Last quarter, it posted a 23.08% positive surprise. Let's
see how things are shaping up for this announcement.
Factors Influencing This Quarter
Tetra Tech's business is going strong in the oil and gas, solid
waste and industrial water markets. Further, the company is
intending to expand its services in the industry to private clients
including Fortune 500 companies from utilities, manufacturing and
chemicals, along with food and beverage sectors.
The company is also focused on streamlining its business
portfolio by exiting from the fixed price construction businesses,
similar to its recent exit from the U.K. business. Such moves
are aimed at reducing cost-overrun risks related to these
However, in the near term the company will have to bear the
expenses from this exit, which is likely to be a drag going
forward. The business can also be impacted by the continued
weakness in the global mining industry, especially in developed
Tetra Tech's mining business in Eastern Canada has been sluggish
for more than a year, which clouds the visibility into the future.
This apart, the company's business is also prone to be affected by
the unfavorable currency translations as a sizeable portion of its
revenues are derived from the international businesses.
Our proven model does not conclusively show that Tetra Tech is
likely to beat earnings this quarter. That is because a stock needs
to have both a positive
and a Zacks Rank of #1, 2 or 3 for this to happen. That is not the
case here as you will see below.
The earning ESP stands at 0.00%. This is because both the Most
Accurate estimate and the Zacks Consensus Estimate stand at 42
Tetra Tech has a Zacks Rank #3 (Hold) but we need to have a
positive ESP to be confident about an earnings surprise.We caution
against stocks with Zacks Ranks #4 and #5 (Sell-rated stocks) going
into the earnings announcement, especially when the company is
seeing negative estimate revisions momentum.
Other Stocks to Consider
Here are some other companies you may want to consider as our
model shows they have the right combination of elements to post an
earnings beat this quarter:
Arch Capital Group Ltd. (
), with Earnings ESP of +5.1% and a Zacks Rank #2 (Buy).
Infosys Ltd. (
), with Earnings ESP of +1.24% and a Zacks Rank #2.
ACE Limited (
), with Earnings ESP of + 0.45% and a Zacks Rank #2.
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TETRA TECH NEW (TTEK): Free Stock Analysis
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