Revenue during the quarter grew 19.29 percent to $668.85 million from $560.71 million in the previous year period. Gross margin for the quarter contracted 88 basis points over the previous year period to 12.16 percent. Total expenses were 94.04 percent of quarterly revenues, down from 94.13 percent for the same period last year. This has led to an improvement of 9 basis points in operating margin to 5.96 percent.

Operating income for the quarter was $39.86 million, compared with $32.93 million in the previous year period.

Tetra Tech’s chairman and chief executive officer, Dan Batrack commented, "Tetra Tech started fiscal year 2017 with very strong results, exceeding our quarterly guidance for both net revenue and earnings. Services across our core markets of water, environment, and infrastructure remain in high demand, and the initial priorities established by the new Administration represent additional opportunities for Tetra Tech in all areas of U.S. infrastructure. Strong orders in our federal and state and local markets increased our backlog to a record $2.5 billion, providing a solid platform for growth as we enter the second quarter."

For fiscal year 2017, Tetra Tech, Inc forecasts revenue to be in the range of $2,000 million to $2,100 million. The company expects diluted earnings per share to be in the range of $2 to $2.20.

For the second-quarter 2017, Tetra Tech, Inc forecasts revenue to be in the range of $450 million to $480 million. The company expects diluted earnings per share to be in the range of $0.42 to $0.47.

Operating cash flow turns negative
Tetra Tech, Inc has spent $58.75 million cash to meet operating activities during the quarter as against cash inflow of $23.62 million in the last year period.

The company has spent $1.81 million cash to meet investing activities during the quarter as against cash outgo of $2.55 million in the last year period. It has incurred net capital expenditure of $1.81 million on net basis during the quarter, down 28.99 percent or $0.74 million from year ago period.

Cash flow from financing activities was $28.94 million for the quarter as against cash outgo of $29.31 million in the last year period.

Cash and cash equivalents stood at $126.98 million as on Jan. 01, 2017, up 1.51 percent or $1.89 million from $125.09 million on Dec. 27, 2015.

Working capital increases sharply
Tetra Tech, Inc has recorded an increase in the working capital over the last year. It stood at $525.36 million as at Jan. 01, 2017, up 36.04 percent or $139.17 million from $386.18 million on Dec. 27, 2015. Current ratio was at 2.23 as on Jan. 01, 2017, up from 1.96 on Dec. 27, 2015.

Days sales outstanding went down to 97 days for the quarter compared with 102 days for the same period last year.

At the same time, days payable outstanding went down to 22 days for the quarter from 25 for the same period last year.