Tetra Tech (TTEK) is getting slammed today. I don't think I have ever mentioned this one - it's one my prospects. The company is based in CA and is an engineering and consulting company focused on water primarily. The stock was hit on a pre-announcement and has slipped from a multiyear high set last month of 31.50 to a low of 26.22 (26.40 now). This is pretty much the middle of a 24-28 range that was in effect for all of 2012 until the stock broke out in early 2013.
The company announced expected weakness in H2 (year ending 9/2013), with a .20-.30 hit to their 1.85-1.96 guidance (10-15%) due to a delay in Quebec (which resulted in a one-time severance charge) and, not surprisingly, weakness in mining. According to the Baird analyst, federal business is 30% of sales and remains stable, which is positive. They say the stock is an opportunity below 25, but I don't think it gets there and would be interested at 26. I think that the earnings should come down about 5% for the year-ending 9/2014 - that estimate was 2.19. let's call it 2.08.
The stock fell short last month of its 32 all-time high set in 2009, and I bet it gets back. My back-of-the-envelope guess is that within six months it can get to 15PE on that 2.08 - let's call that 31. I will try to look more closely at this one, as I have considered adding it to my watchlist.