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Dycom's (DY) Stock Up as Q1 Earnings & Revenues Top Estimates
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Dycom Industries Inc. (DY - Free Report) reported strong results for first-quarter fiscal 2025 (ended Apr 27, 2024). Both the top and bottom lines surpassed their respective Zacks Consensus Estimate.
Contract revenues and earnings increased on a year-over-year basis. Shares of the company gained nearly 9% in the pre-market trading session on May 22.
Notably, in May, the company acquired a telecommunications construction contractor that will expand its geographic footprint in Alaska.
Earnings & Revenue Discussion
Dycom reported adjusted earnings per share (EPS) of $2.12, which beat the Zacks Consensus Estimate of $1.39 by 52.5% and increased 22.5% from $1.73 year over year.
Contract revenues of $1.14 million surpassed the consensus mark of $1.09 million by 4.8% and grew 9.3% year over year. Contract revenues rose 2.5% on an organic basis. Acquisitions contributed $71.2 million to contract revenues.
Dycom Industries, Inc. Price, Consensus and EPS Surprise
The company’s top five customers contributed 56.4% to total contract revenues, which inched up marginally, organically. Revenues from all other customers increased 5.7% organically in the quarter. The quarter marks the 21st consecutive period of organic growth for DY’s all other customers in aggregate, excluding the top five.
Dycom’s largest customer, AT&T, contributed 21.5% to total revenues. Lumen (the second-largest customer) contributed 13% to total revenues and rallied 15% organically. Comcast contributed 11.5%, Verizon represented 9.6% and Charter added 2.1% to total revenues. Charter was up 121.8% year over year on an organic basis.
Fiber construction revenues from electric utilities were $96 million.
Operations & Backlog Details
Adjusted EBITDA increased 15.3% to $130.9 million from $113.5 million reported a year ago. Adjusted EBITDA margin of 11.5% expanded 60 basis points from the year-ago level.
Dycom’s backlog at the end of the fiscal first quarter totaled $6.364 billion compared with $6.917 billion at the fiscal 2024-end. Of the backlog, $3.863 billion is projected to be completed in the next 12 months.
Financials
As of Apr 27, 2024, Dycom had liquidity of $573.6 million, including cash and cash equivalents worth $26.1 million compared with $101.1 million as of Jan 27, 2024. Long-term debt was $842.4 million at the fiscal first-quarter end, up from $791.4 million at the fiscal 2024-end.
At the end of the fiscal first quarter, DY repurchased 210,000 shares of its common stock for $29.8 million at an average price of $141.84 per share.
Fiscal Second-Quarter View
For the fiscal second quarter (ending on Jul 27, 2024), DY expects contract revenues to grow by high-single digits year over year. It expects $70 million of acquired contract revenues for the quarter.
The adjusted EBITDA margin is expected to increase 25-75 bps from the year-ago levels. For the said period, Dycom expects the effective tax rate to be 26.5% and diluted shares of 29.4 million. Interest expenses, net, is likely to be $14.9 million and amortization expenses to be $6 million.
MasTec, Inc. (MTZ - Free Report) reported better-than-expected results in first-quarter 2024, with earnings and revenues beating the Zacks Consensus Estimate and increasing year over year.
The company’s results reflect solid contributions from its Oil and Gas segment, which were partially offset by soft contributions from the other reportable segments. The uptick in the Oil and Gas segment was attributable to higher levels of project activity, including project timing-related increases in large-diameter and midstream project activity due to improved market and regulatory conditions.
EMCOR Group, Inc. (EME - Free Report) reported impressive results for the first quarter of 2024. Its earnings surpassed the Zacks Consensus Estimate and increased year over year, backed by its focus on operational excellence.
Revenues also grew from the previous year due to a continued strong mix and pipeline of projects in large and growing market sectors with long-term secular trends, including high-tech and traditional manufacturing and network & communications.
Primoris Services Corporation (PRIM - Free Report) reported stellar earnings for the first quarter of 2024. Its earnings significantly surpassed the Zacks Consensus Estimate and increased year over year.
Revenues also increased from the previous year. The company has been witnessing growing demand for Energy and Utilities services, thanks to progress being seen in the energy transition and infrastructure modernization of North America. Its solar and industrial businesses are also capitalizing on opportunities to help meet the growing demand for power generation, while the power delivery business supports the increased need for transmission and distribution services.
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Dycom's (DY) Stock Up as Q1 Earnings & Revenues Top Estimates
Dycom Industries Inc. (DY - Free Report) reported strong results for first-quarter fiscal 2025 (ended Apr 27, 2024). Both the top and bottom lines surpassed their respective Zacks Consensus Estimate.
Contract revenues and earnings increased on a year-over-year basis. Shares of the company gained nearly 9% in the pre-market trading session on May 22.
Notably, in May, the company acquired a telecommunications construction contractor that will expand its geographic footprint in Alaska.
Earnings & Revenue Discussion
Dycom reported adjusted earnings per share (EPS) of $2.12, which beat the Zacks Consensus Estimate of $1.39 by 52.5% and increased 22.5% from $1.73 year over year.
Contract revenues of $1.14 million surpassed the consensus mark of $1.09 million by 4.8% and grew 9.3% year over year. Contract revenues rose 2.5% on an organic basis. Acquisitions contributed $71.2 million to contract revenues.
Dycom Industries, Inc. Price, Consensus and EPS Surprise
Dycom Industries, Inc. price-consensus-eps-surprise-chart | Dycom Industries, Inc. Quote
The company’s top five customers contributed 56.4% to total contract revenues, which inched up marginally, organically. Revenues from all other customers increased 5.7% organically in the quarter. The quarter marks the 21st consecutive period of organic growth for DY’s all other customers in aggregate, excluding the top five.
Dycom’s largest customer, AT&T, contributed 21.5% to total revenues. Lumen (the second-largest customer) contributed 13% to total revenues and rallied 15% organically. Comcast contributed 11.5%, Verizon represented 9.6% and Charter added 2.1% to total revenues. Charter was up 121.8% year over year on an organic basis.
Fiber construction revenues from electric utilities were $96 million.
Operations & Backlog Details
Adjusted EBITDA increased 15.3% to $130.9 million from $113.5 million reported a year ago. Adjusted EBITDA margin of 11.5% expanded 60 basis points from the year-ago level.
Dycom’s backlog at the end of the fiscal first quarter totaled $6.364 billion compared with $6.917 billion at the fiscal 2024-end. Of the backlog, $3.863 billion is projected to be completed in the next 12 months.
Financials
As of Apr 27, 2024, Dycom had liquidity of $573.6 million, including cash and cash equivalents worth $26.1 million compared with $101.1 million as of Jan 27, 2024. Long-term debt was $842.4 million at the fiscal first-quarter end, up from $791.4 million at the fiscal 2024-end.
At the end of the fiscal first quarter, DY repurchased 210,000 shares of its common stock for $29.8 million at an average price of $141.84 per share.
Fiscal Second-Quarter View
For the fiscal second quarter (ending on Jul 27, 2024), DY expects contract revenues to grow by high-single digits year over year. It expects $70 million of acquired contract revenues for the quarter.
The adjusted EBITDA margin is expected to increase 25-75 bps from the year-ago levels. For the said period, Dycom expects the effective tax rate to be 26.5% and diluted shares of 29.4 million. Interest expenses, net, is likely to be $14.9 million and amortization expenses to be $6 million.
Zacks Rank & Peer Releases
Dycom currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
MasTec, Inc. (MTZ - Free Report) reported better-than-expected results in first-quarter 2024, with earnings and revenues beating the Zacks Consensus Estimate and increasing year over year.
The company’s results reflect solid contributions from its Oil and Gas segment, which were partially offset by soft contributions from the other reportable segments. The uptick in the Oil and Gas segment was attributable to higher levels of project activity, including project timing-related increases in large-diameter and midstream project activity due to improved market and regulatory conditions.
EMCOR Group, Inc. (EME - Free Report) reported impressive results for the first quarter of 2024. Its earnings surpassed the Zacks Consensus Estimate and increased year over year, backed by its focus on operational excellence.
Revenues also grew from the previous year due to a continued strong mix and pipeline of projects in large and growing market sectors with long-term secular trends, including high-tech and traditional manufacturing and network & communications.
Primoris Services Corporation (PRIM - Free Report) reported stellar earnings for the first quarter of 2024. Its earnings significantly surpassed the Zacks Consensus Estimate and increased year over year.
Revenues also increased from the previous year. The company has been witnessing growing demand for Energy and Utilities services, thanks to progress being seen in the energy transition and infrastructure modernization of North America. Its solar and industrial businesses are also capitalizing on opportunities to help meet the growing demand for power generation, while the power delivery business supports the increased need for transmission and distribution services.