What Happened?
Shares of environmental engineering firm Tetra Tech (NASDAQ: TTEK) jumped 4.6% in the afternoon session after the company announced it received a position on a five-year contract from the U.S. Army Corps of Engineers.
The contract, awarded by the Portland District, is a multiple-award agreement with a shared capacity of $49 million. Under the deal, Tetra Tech provided architectural and engineering design services for critical navigation and water control infrastructure. This work included projects related to locks, dams, levees, and flood zone management.
After the initial pop the shares cooled down to $37.03, up 3.8% from previous close.
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What Is The Market Telling Us
Tetra Tech’s shares are not very volatile and have only had 8 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.
The biggest move we wrote about over the last year was 3 months ago when the stock gained 16.2% on the news that the company reported third-quarter results that significantly beat Wall Street's expectations for both revenue and profit. The company reported revenue of $1.23 billion, which was 17.3% higher than the $1.05 billion analysts had estimated. Its earnings per share of $0.48 also came in 18.5% above the consensus forecast. Looking ahead, while Tetra Tech's revenue forecast for the next quarter was largely in line with expectations, its guidance for the upcoming fiscal year's earnings was a significant positive. The company projected earnings of $1.48 per share at the midpoint, beating analyst estimates. This strong forward-looking profitability appears to have overshadowed any near-term concerns, driving a wave of buying from investors.
Tetra Tech is up 10% since the beginning of the year, but at $37.03 per share, it is still trading 13.1% below its 52-week high of $42.61 from February 2026. Investors who bought $1,000 worth of Tetra Tech’s shares 5 years ago would now be looking at an investment worth $1,355.
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