Zacks Investment Research downgraded
Tetra Tech Inc.
) to a Zacks Rank #5 (Strong Sell) on Aug 21.
Why the Downgrade?
Tetra Tech has been witnessing downward estimate revisions since
it reported lower-than-expected third-quarter 2014 results on Jul
30. Quarterly earnings of 41 cents per share came a penny below the
Zacks Consensus Estimate.
The ongoing weakness in its Remediation and Construction
Management (RCM) segment proved to be a drag on the company's
financials in the quarter. The business being impacted by the
unfavorable conditions in the construction market is awaiting an
operational evaluation aimed at reducing risks and augmenting
Expecting the slump to persist until a transformation process is
initiated, Tetra Tech lowered its guidance for both earnings and
revenues in 2014. For fiscal 2014, the company expects earnings per
share in the range of $1.61-$1.71 as compared with the prior
projection of $1.75-$1.85. Meanwhile, revenues, net of
subcontractor costs, are expected in the $1.85-$1.9 billion band,
down from $1.9-$2.0 billion forecasted earlier.
All these negatives triggered a downtrend in the Zacks Consensus
Estimate for earnings which declined 8.3% for 2014 to $1.65 per
share over the last 30 days. Further, for 2015, the same dipped
14.2% to $1.69 per share.
Other Stocks to Consider
Some other better-ranked stocks worth a look in the same sector
include Blount International Inc. (
), Fuel-Tech, Inc. (
) and Sharps Compliance Corp. (
). While Blount International sports a Zacks Rank #1 (Strong Buy),
Fuel-Tech and Sharps Compliance carry a Zacks Rank #2 (Buy).
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TETRA TECH NEW (TTEK): Free Stock Analysis
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