Tetra Tech, Inc. TTEK reported solid results for the second quarter of fiscal 2021 (ended Mar 28, 2021), with earnings surpassing estimates by 10.7%. This was the 15th consecutive quarter of better-than-anticipated results.The company’s adjusted earnings per share in the reported quarter came in at 83 cents, handily outpacing the Zacks Consensus Estimate of 75 cents. Also, earnings increased 13.7% from the year-ago quarter’s 73 cents.The bottom line also topped management’s projection of 73-78 cents per share.Despite such impressive performance, the Pasadena, CA-based company failed to boost investor sentiments as its shares fell 5.4% on Apr 29, to close the trading session at $127.04.Revenues & Segmental PerformanceIn the fiscal second quarter, Tetra Tech generated adjusted revenues of $754.3 million, reflecting a year-over-year increase of 2.7%. Adjusted net revenues (adjusted revenues minus subcontractor costs) came in at $599.3 million, up 2.5%. The figure surpassed the company’s guidance of $565-$595 million.Further, Tetra Tech’s revenues exceeded the Zacks Consensus Estimate of $583 million.Backlog at the end of the quarter was $3,150.2 million, down 1.2% from the previous quarter.Revenues from the U.S. Federal customers (accounting for 31% of the quarter’s revenues) were up 6% year over year. Growth in advanced analytics was negated by a delay in international development projects.The U.S. Commercial sales (21% of the quarter’s revenues) declined 7% year over year on lower discretionary industrial programs. Stability was witnessed in regulatory-driven programs.The U.S. State and Local sales (17% of the quarter’s revenues) increased 32% on strength across municipal infrastructure backed by effective disaster response. International sales (31% of the quarter’s revenues) decreased 5% year over year.The company reports revenues under the segments discussed below:Net sales of Government Services Group came in at $347.1 million, up 8.1% year over year.Revenues from Commercial / International Services Group totaled $252.2 million, underlining a year-over-year decline of 4.3%.Tetra Tech, Inc. Price, Consensus and EPS Surprise Tetra Tech, Inc. price-consensus-eps-surprise-chart | Tetra Tech, Inc. QuoteMargin ProfileIn the fiscal second quarter, Tetra Tech’s subcontractor costs totaled $154.9 million, reflecting a rise of 3.5% from the year-ago quarter. Other costs of revenues (adjusted) were $486.8 million, up 1.1%. Selling, general and administrative expenses (adjusted) were $51.7 million, up 2.4%.Net income in the reported quarter increased 25.1% year over year to $45.5 million, while adjusted margin expanded 110 basis points to 10.1%.Balance Sheet and Cash FlowExiting the fiscal second quarter, Tetra Tech had cash and cash equivalents of $225.3 million, up 37.9% from $163.4 million recorded at the end of the prior quarter. Long-term debt was down 13.7% sequentially to $238.3 million from $276 million.In the first six months of fiscal 2021, it generated net cash of $157.4 million from operating activities compared with $83.2 million in the year-ago period. Capital expenditure was $4.3 million, down 26.9%. In the same time frame, the company’s proceeds from borrowings amounted to $141.6 million, while repayments totaled $146.3 million.Shareholder-Friendly PolicyIn the first six months of fiscal 2021, the company bought back shares worth $30 million and distributed dividends totaling $18.4 million.Exiting the fiscal second quarter, the company had $178 million worth authorization left under its approved buyback programs.OutlookFor fiscal 2021 (ending September 2021), Tetra Tech anticipates net revenues of $2.45-$2.55 billion compared with $2.40-$2.55 billion guided earlier, while adjusted earnings are predicted to be $3.60-$3.70 compared with $3.45-$3.60 predicted earlier. The bottom-line projection is higher than the $3.26 recorded in fiscal 2020.For the fiscal third quarter (ending Jun 2021), the company estimates net revenues of $600-$650 million and adjusted earnings per share of 85-90 cents.Zacks Rank & Other Stocks to ConsiderThe company currently carries a Zacks Rank #2 (Buy).Some other top-ranked stocks in the broader industry are Energy Recovery, Inc. ERII, Sharps Compliance Corp. SMED and Titan International, Inc. TWI, each carrying a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Energy Recovery delivered an earnings surprise of 232.1%, on average, in the trailing four quarters.Sharps Compliance delivered an earnings surprise of 306.7%, on average, in the trailing four quarters.Titan International delivered an earnings surprise of 32.3%, on average, in the trailing four quarters.5 Stocks Set to DoubleEach was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Tetra Tech, Inc. (TTEK): Free Stock Analysis Report Sharps Compliance Corp (SMED): Free Stock Analysis Report Titan International, Inc. (TWI): Free Stock Analysis Report Energy Recovery, Inc. (ERII): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research