On June 18, 2013, California-based consulting, engineering and
technical service provider company Tetra Tech Inc.
( TTEK ) revealed
its lower earnings expectation for the third quarter of fiscal
The lowered guidance factored the impacts of increased
restructuring costs from weakness in Eastern Canada and mining.
Costs have also increased due to new projects.
During the second quarter earnings call on May 2, 2013, Tetra
Tech had mentioned about the prevailing weakness in Eastern Canada
and mining that was likely to be detrimental to its business in the
in the upcoming quarters.
However, a downward revision in fiscal 2013 third quarter
earnings 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
attracted investigation into possible breaches of fiduciary duty by
the company. Law offices of Howard G. Smith, Levi & Korsinsky,
Wohl & Fruchter LLP, Bronstein, Gewirtz & Grossman, LLC and
others are all engaged in this investigation. This further had an
adverse effect on the stock.
Concurrent with the press release, on the 18 th of
June, the shares of Tetra Tech sank about 13% hitting a new 52-week
low at $22.56. Disappointed with the outlook, we expect that it
will be several quarters before the company regains its footing in
terms of overall profitability.
On April 8, 2013, Tetra Tech had trimmed its outlook for fiscal
2013. This news also had a negative impact on the company's share
price, which fell 6.8% to $26.35 on that day.
Tetra Tech currently has a Zacks Rank #3 (Hold). Other companies
in the industry that are worth considering include CECO
Environmental Corp. ( CECE ) with a Zacks
Rank #1 (Strong Buy), while Calgon Carbon
Corporation ( CCC ) and
Versar Inc. ( VSR ) have a Zacks Rank
#2 (Buy) each.CALGON CARBON (CCC): Free Stock Analysis ReportCECO ENVIRNMNTL (CECE): Free Stock Analysis
ReportTETRA TECH NEW (TTEK): Free Stock Analysis
ReportVERSAR INC (VSR): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment