On Jun 25, Zacks Investment Research downgraded
Tetra Tech Inc. (
to a Zacks Rank #5 (Strong Sell). Tetra Tech is a technical
service provider for water and environmental purifications,
pollution control and other related fields.
Why the Downgrade?
On Jun 18, Tetra Tech lowered its financial guidance for the
third quarter of fiscal 2013, which resulted in a downward
revision in earnings estimate in the last 7 days. The Zacks
Consensus Estimate for 2013 has gone down by a whopping 44.85%
over the last 30 days to 91 from the earlier estimate of $1.65,
while for 2014, the estimate decreased by 8.37% to $1.86.
According to the company, the lowered guidance to a loss of 30
cents to 50 cents per share from an earlier guidance of 32 cents
to 42 cents earnings per share brought about the impacts of
increased restructuring costs from weakness in Eastern Canada and
mining. However, this necessitated investigation into possible
breaches of fiduciary duty by the company. Different law offices
have got engaged in this investigation. With this a number of
lawsuits have been filed in the United States District Court
against the company and Shareholders Alert has been declared.
This had a further adverse effect on the stock.
The company delivered negative earnings surprises in three out
of the last four quarters with an average negative surprise of
1.59% for the last four quarters. Also, the company's earnings
estimate for the current quarter is a loss of 41 cents per share.
Shares of Tetra Tech also attained a 52-week low on Jun 19 of
$22.56. Moreover, most of the analysts have downgraded their
estimates during the last 30 days and thus the stock experienced
a sharp dip in its Zacks Rank straight from a Zacks Rank #3(Hold)
to a Zacks Rank #5(Strong Sell).
Other Stocks to Consider
Not all stocks in the retail sector are performing as
disappointingly as Tetra Tech. Other stocks worth considering in
the sector are
CECO Environmental Corp.
) with a Zacks Rank #1 (Strong Buy), while
) currently holds a Zacks Rank #2 (Buy)
CECO ENVIRNMNTL (CECE): Free Stock Analysis
NSK LTD -UN ADR (NPSKY): Get Free Report
TETRA TECH NEW (TTEK): Free Stock Analysis
VERSAR INC (VSR): Free Stock Analysis Report
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