Tetra Tech Shares Decline On Cautious Outlook

PITTSBURGH (AP) — Shares of Tetra Tech Inc. slid Thursday, a day after the engineering consulting firm forecast earnings for fiscal 2010 that fell below of some Wall Street estimates.

The Pasadena, Calif.-based company said Wednesday it expects fiscal 2010 earnings of $1.25 to $1.35 per share on revenue of $1.45 billion to $1.55 billion.

In a note to investors, Janney Montgomery Scott analyst Debra Coy pointed to a higher consensus estimate of $1.37 per share and her firm's estimate of $1.33 per share. Analysts predicted revenue of $1.53 billion while her firm anticipated $1.47 billion.

"We believe the cautious outlook is due to continued delays in release of federal government work, as well as continued weakness in commercial building-related work and some state and local consulting work, which is hurting capacity utilization and margins," Coy wrote.

She continued: "We had been preparing for conservative guidance, though the bottom end of the range will probably scare some investors."

Still, Tetra Tech posted a 12.6 percent rise in fiscal fourth-quarter profit, helped by growth in its federal and international business. Net income rose to $20.5 million, or 33 cents per share, from $18.2 million, or 30 cents per share, a year earlier.