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Leading specialty contracting services provider, Dycom Industries Inc. (DY - Analyst Report) reported third-quarter (ended Apr 26) fiscal 2014 net income of $7.9 million or 23 cents per share, beating the Zacks Consensus Estimate by a penny. In the prior-year quarter, the company had reported a net income of $7.2 million or 21 cents per share.

Revenues

Dycom’s contract revenues declined 2.5% year over year to $426.3 million. Revenues also fell short of the Zacks Consensus Estimate of $429 million.

Income and Expenses

The company reported adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) of $39.6 million, down from $44.0 million in the prior-year quarter. General and administration expenses were $39.2 million versus $38.2 million in the prior-year quarter.

Balance Sheet and Cash Flow

Cash and cash equivalents increased to $18.7 million at the quarter-end from $18.6 million at the end of Jul 27, 2013. The figure also marked an increase from $16.3 million in the last quarter. Dycom reported total equity of $465 million, compared with $428.4 million at the end of Jul 27, 2013. Long-term debt decreased to $403.1 million from $444.2 million as on Jul 27, 2013.

Outlook

Along with the earnings release, management provided guidance for the fourth quarter of fiscal 2014. Revenues for quarter are expected to be in the $475.0–$495.0 million range and earnings per share are projected at 43–50 cents.

Zacks Rank

Dycom currently carries a Zacks Rank #3 (Hold).

Performance of Other Stocks in the Same Sector

EMCOR Group Inc. (EME - Analyst Report) reported robust first-quarter 2014 results with adjusted earnings of 64 cents per share easily surpassing the Zacks Consensus Estimate of 53 cents.

Tutor Perini Corporation (TPC - Snapshot Report) reported first-quarter 2014 non-GAAP earnings of 33 cents a share, beating the Zacks Consensus Estimate of 20 cents a share.

Quanta Services Inc. (PWR - Analyst Report) reported first-quarter 2014 non-GAAP earnings of 44 cents a share, beating the Zacks Consensus Estimate of 37 cents a share.

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