Benzinga | Jan 26, 2021 10:44AM EST

Earnings Outlook For Tetra Tech

Tetra Tech (NASDAQ:TTEK) announces its next round of earnings this Wednesday, January 27. Here is Benzinga's look at Tetra Tech's Q1 earnings report.

Net Income, Earnings, And Earnings Per Share

Earnings and especially earnings per share (EPS) are useful measures of a company's profitability. Total earnings, which is also referred to as net income, equals total revenue minus total expenses. EPS equals to net income divided by the number of shares outstanding.

Earnings And Revenue

Wall Street analysts see Tetra Tech reporting earnings of $0.81 per share on sales of $587.68 million. Tetra Tech reported a profit of $0.84 per share when it published results during the same quarter last year. Sales in that period totaled $614.02 million.

Why Analyst Estimates And Earnings Surprises Are Important

Wall Street analysts who study this company will publish analyst estimates of revenue and EPS. The averages of all analyst EPS and revenue estimates are called the "consensus estimates"; these consensus estimates can have a significant effect on a company's performance during an earnings release. When a company posts earnings or revenue above or below a consensus estimate, it has posted an "earnings surprise", which can really move a stock depending on the difference between actual and estimated values.

The analyst consensus estimate would represent a 3.57% decrease in the company's earnings. Revenue would be down 4.29% from the year-ago period. Here is how the company's reported EPS has stacked up against analyst estimates in the past:

Quarter Q4 2020 Q3 2020 Q2 2020 Q1 2020EPS Estimate 0.80 0.72 0.72 0.76EPS Actual 0.91 0.78 0.73 0.84Revenue Estimate 586.19 M 555.94 M 599.79 M 611.55 MRevenue Actual 589.81 M 560.28 M 584.46 M 614.02 M

Stock Performance

Shares of Tetra Tech were trading at $137.81 as of January 25. Over the last 52-week period, shares are up 52.94%. Given that these returns are generally positive, long-term shareholders are probably satisfied going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Tetra Tech is scheduled to hold the call at 11:00:00 ET and can be accessed here.