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Here are highlights from Friday's Analyst Blog:

Sepracor Building a Base

Business fundamentals at Sepracor, Inc. (SEPR) have been poor over the past several quarters. Lunesta growth disappointed throughout 2008 and guidance for 2009 assumes sales will decline between 5% and 10%.

Likewise, Xopenex and Xopenex HFA also disappointed throughout 2008. Sales will also decline in 2009. Brovana, a product which on the cusp seems to offer blockbuster potential, continues to struggle with sales tracking far below $100 million -- a level we originally believed Brovana would eclipse only a few quarters after launch. New products, Alvesco and Omnaris, which management believes offer multi-hundred million dollar potential, also continues to struggle and guidance for 2009 sales was very disappointing. In fact, total revenues in 2009 will likely decline between 5% and 10%.

Raytheon Keeps Outperforming

Raytheon Co. (RTN) continues to consistently report improved year-over-year revenue and EPS results.

The bullish story on Raytheon revolves around signs of an improving business jet market, increased defense spending, superior backlogs, and strong cash flow. Revenue and earnings growth continue to be driven by strong demand for missile and missile defense systems as well as network-centric mission solutions, including sensor and communication systems.

AstraZeneca Pipeline Must Deliver

We currently rate shares of AstraZeneca PLC (AZN) a Hold with a $38 price target. The company is facing a number of challenges as it enters 2009, most notably generic competition to Toprol-XL, Nexium, Casodex, and Pulmicort.

The just-announced increase to the cost-cutting program will aid EPS in the near-term, but we do not believe this will be enough to compensate for continued revenue deterioration beyond 2010. Atacand and Arimidex will both be subject to generic competition in 2010, then Seroquel and Symbicort lose U.S. patent protection in 2011 and 2012, respectively. This puts significantly more pressure on the company to commercialize its late-stage pipeline.

GATX Ests Cut, Post-Report

GATX Corporation (GMT or GATX) posted diluted EPS before nonrecurring items of $0.68, down 24% year over year. This was well above consensus of $0.50 and our $0.54 estimate, primarily reflecting lower-than-expected expense growth due to volume-related declines in SG&A, other operating costs and marine operating expenses.

For the quarter, the company recorded revenue of $263 million compared to $289 million in the year-ago quarter. GATX's fleet utilization remains solid, though it is on a declining trend. North American railcar fleet utilization was 96.5% at March 31, 2009, and was down from 97.9% at December 31, 2008 and 98.1% at the end of the prior-year quarter. European tank car utilization was 96.5% at March 31, 2009, decreasing from 97.1% at December 31, 2008 and 97.5% in the year-ago quarter.

Tetra Tech: Waiting for ARRA!

Tetra Tech, Inc. (TTEK) had predicted that Q2-09 EPS would be in the range of 24¢ to 26¢; the precise, actual number was 31.6¢, which included 5.5¢ from the impact of an IRS tax settlement, which, if excluded from the results, brings the remainder down to 26.1¢.

Such accuracy is indeed commendable -- and especially noteworthy -- for a hi-tech company the ilk of TTEK. However, on a slightly less-accurate basis, 26¢ is but 13.0% higher than the 23¢ reported in Q2-08. In Q1-09, EPS were up 22.7%. Consequently, a bit of slowing can be detected in these numbers, part of which can be attributed to the recent Wardrop acquisition. However, if we drill down further into the results, we find that there are other similar indicators.

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Tetra Tech, Inc. (TTEK) has been on a very nice rally since originally being featured as a momentum stock in early November in response to another solid quarter and strong estimates.

First-Quarter Results

Tetra Tech stepped up and reported solid first-quarter results on Jan 28 that were ahead of expectations. Revenue was up 35% from last year to $639 million. Income came in at $16.3 million, up from $12.9 million last year. This produced earnings of 27 cents per share, one penny ahead of the consensus estimate.

Segment Performance

Tetra Tech noted that its private sector business increased 127% due to growth from wind and water projects. The company's federal business was up a modest 7.6%, while state and local business declined 14%.

Analyst Estimates

The analyst community remains bullish on Tetra tech, with the current-year estimate holding at 1.15 per share and the next-year estimate pegged at $1.31, a 14% earnings growth projection.

The Chart

Shares of TTEK have been on a solid rally after bottoming out just above $14 in late November. Since then, this stock has risen as high as beyond the $25 mark and is currently pressuring this area as a short-term level of resistance. Take a look below.

Updates to Previous Momentum Zacks Rank Buy Stocks

UGI Corp.'s (UGI) share price recently jumped beyond a key level of resistance just above $25 in response to the company's strong first-quarter results. Read Full Article.

Family Dollar Stores (FDO) reported excellent first-quarter results in early January that sent its share price hurtling towards a key level of resistance at the $29 mark. Read Full Article.

Duncan Energy Partners LP (DEP) recently reported excellent fourth-quarter and full-year results that demonstrate the company's ability to grow its earnings in spite of lower energy prices and a weak consumer environment. Read Full Article.

Starent Networks Corp. (STAR) is fresh off the heels of another excellent quarter in which its earnings were easily ahead of analyst estimates. The company's share price has been accelerating since finding a short-term bottom in mid November. Read Full Article.

"TTEK" Free Stock Analysis: Buy? Sell? Hold?
Zacks Investment Research

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• Aeropostale Inc (ARO)
• AMCOL International Corp (ACO)
• Atlas Pipeline Partners LP (APL)
• Babcock & Brown Air Ltd (FLY)
• Bank of Marin Bancorp (BMRC)
• Comverse Technology Inc (CMVT)
• Covidien Ltd (COV)
• Einstein Noah Restaurant Group Inc (BAGL)
• Gushan Environmental Energy Ltd (GU)
• Hewitt Associates Inc (HEW)
• Hutchison Whampoa Ltd (HUWHY)
• ICON plc (ICLR)
• Kendle International Inc (KNDL)
• Leggett & Platt Inc (LEG)
• Lexmark International Inc (LXK)
• Martek Biosciences Corp (MATK)
• Massey Energy Company (MEE)
• Planar Systems Inc (PLNR)
• Rofin-Sinar Technologies (RSTI)
• Shinhan Financial Group Co Ltd (SHG)
• Skilled Healthcare Group Inc (SKH)
• St. Jude Medical Inc (STJ)
• Telemig Celular Participacoes SA (TMB)
• Tetra Tech Inc (TTEK)
• Tredegar Corporation (TG)
• Valmont Industries Inc (VMI)

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• Tetra Tech Inc (TTEK)
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On August 12th the company announce the sale of its financial advisory segment, which was well received by the street. The $315 million sale is not expected to generate a material gain, but will free up cash about $340 million in cash.

Shares of HRB have been in a bullish trend gaining over 20% in the past two months as analysts continue to raise their full year estimates for 2009 and 2010. Take a look at the chart below. Read the July 17th Article Here.

Last Week's Aggressive Growth Zacks Rank Buy Stocks

B>ICON Plc (ICLR) made several key acquisitions and partnerships this year and continues to expand globally. The company also just announced great second-quarter results for its fourth earnings surprise in as many quarters. Read Full Article.

Dresser-Rand Group, Inc (DRC) continues to make strategic acquisitions and recently announced solid second-quarter results. While the company has seen quarterly earnings grow more than 78%, it remains reasonably priced with a PEG ratio of .58. Read Full Article.

Tetra Tech, Inc. (TTEK) has surprised analysts for the fourth time in the past four quarters. The company also built up a record backlog of business and has recently acquired three firms to support the added business. Read Full Article.

Valmont Industries, Inc (VMI) is coming off of a record-setting quarter for sales, net income, and operating income. A world-wide demand and excellent cost management have propelled the company to its record levels. The acquisitions from earlier this year are making significant contributions for the Zacks #1 rated stock. Read Full Article.
"BLC" Free Stock Analysis: Buy? Sell? Hold?
Zacks Investment Research

Company Description

Tetra Tech, Inc. provides environmental engineering and consulting services to several public and private sector clients. The company is based in Pasadena, California, carries a market cap of $1.7 billion, and employs approximately 8,500 people.

Quarterly Results Well Above Guidance

Tetra Tech, Inc announced third-quarter results on July 30th which surpassed guidance in several key areas. Net Revenue was $332.3 million, up 29.6% year-over-year from $256.3 million.

The largest gains were seen in government and commercial business which had year-over-year increases of 34% and 36%, respectively. Heavier workloads by government agencies and several wind power projects were the source of the additional business.

The impressive growth translated to earnings per share of 27 cents, up 28.6% from 21 cents in the same quarter last year. The EPS announcement beat the consensus estimate, which was 24 cents, by 12.5%. This was the fourth earnings surprise in as many quarters, each averaging 10.3%

New Contracts Yield Record Backlog

Since the beginning of the year, Tetra Tech has announce almost a dozen contracts and projects that may value over $5 billion when completed. Most has been awarded from the United States Air Force and Navy.

The company now has a backlog of $1.57 billion a company record and up 29.3% year-over-year.

Tetra Bolsters Services Available Through Acquisition

Tetra Tech completed the acquisition of three firms that will contribute to several areas including the services offered to the US Agency for Internal Development. The consulting and engineering companies have a total annual revenue of approximately $20 million.

The Chart

Shares of TTEK set a new 52-week high of $30.00 per share shortly after the July 30th earnings announcement. The stock has pulled back slightly and is currently trading in a tight channel between just above $29 and just below $28. Take a look at the chart below.

"WATR" Free Stock Analysis: Buy? Sell? Hold?
Zacks Investment Research

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