Tetra Tech, Inc. (TTEK), Wednesday said its third-quarter profit increased from the same quarter a year ago, helped by an increase in cash generated as well as tax benefits. Quarterly earnings as well as revenues net of subcontractor costs came in ahead of Street estimates. The company also provided its forecast for the fourth quarter and full year 2009.
The Pasadena, California-based company's quarterly earnings increased 92.2% to $31.0 million from $16.1 million in the same quarter a year ago and on a per share basis, earnings increased 88.2% to $0.51 from $0.27 in the corresponding quarter last year. Earnings per share for the third quarter included a tax benefit of nearly $0.16.
On average, 17 analysts polled by Thomson Reuters expected the company to report earnings of $0.30 per share. Analysts' estimate typically exclude special items such as one-time charges or gains.
Income from operations for the third quarter increased 16.8% to $32.8 million from $28.1 million in the same quarter last year.
Cash generated from operations for the third quarter was $60.8 million, up 261.8% from $16.8 million in the same quarter last year, benefiting from a $39.8 million cash refund related to the second quarter IRS settlement.
Quarterly revenues decreased to $551.4 million from $564.3 million in the same quarter last year, while revenues net of subcontractor costs increased to $356.927 million from $332.269 million in the same quarter last year. The Street expected revenues of $347.94 million for the third quarter.
For the nine-month period, net income increased to $66.533 million or $1.10 per share from $42.708 million or $0.72 per share in the same period a year ago.
Revenues for the first nine months decreased to $1.712 billion from $1.496 billion in the same period last year. Revenues net of subcontractor costs increased to $1.019 billion from $896.781 million in the same quarter last year.
Looking forward to the fourth quarter, Tetra Tech expects earnings in the range of $0.30 to $0.33 per share. The Street expects fourth quarter earnings of $0.33 per share.
Revenue for the period, net of subcontractor costs, is expected in the range of $330 million to $360 million, below the current Street estimates of $375.96 million.
For the fiscal year 2009, Tetra Tech raised its earnings forecast and now expects earnings in the range of $1.40 per share to $1.43 per share including an yearly tax benefit of $0.22 per share. Earnings forecast provided earlier was in the range of $1.17 per share to $1.23 per share. The Street currently anticipates earnings of $1.22 per share for the year.
TTEK closed Wednesday's regular trading session at $30.09, down $0.52 or 1.70%, on a volume of 0.533 million shares on the Nasdaq. In the after hours, the stock lost $0.12 or 0.40%, to trade at $29.97.
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