Tetra Tech, Inc. (NASDAQ:TTEK) investors will be delighted, with the company turning in some strong numbers with its latest results. The company beat expectations with revenues of US$1.1b arriving 2.6% ahead of forecasts. Statutory earnings per share (EPS) were US$0.42, 6.3% ahead of estimates. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

After the latest results, the seven analysts covering Tetra Tech are now predicting revenues of US$4.54b in 2027. If met, this would reflect an okay 4.2% improvement in revenue compared to the last 12 months. Statutory per-share earnings are expected to be US$1.73, roughly flat on the last 12 months. In the lead-up to this report, the analysts had been modelling revenues of US$4.48b and earnings per share (EPS) of US$1.70 in 2027. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

The analysts reconfirmed their price target of US$40.33, showing that the business is executing well and in line with expectations. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. The most optimistic Tetra Tech analyst has a price target of US$46.00 per share, while the most pessimistic values it at US$36.00. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that Tetra Tech's revenue growth is expected to slow, with the forecast 3.4% annualised growth rate until the end of 2027 being well below the historical 13% p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 6.2% annually. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Tetra Tech.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Tetra Tech's revenue is expected to perform worse than the wider industry. The consensus price target held steady at US$40.33, with the latest estimates not enough to have an impact on their price targets.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have forecasts for Tetra Tech going out to 2028, and you can see them free on our platform here.

You can also see whether Tetra Tech is carrying too much debt, and whether its balance sheet is healthy, for free on our platform here.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.