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Dycom Q1 Earnings Beat Estimates

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Leading specialty contracting services provider, Dycom Industries Inc. (DY - Free Report) reported first-quarter fiscal 2014 GAAP net income of $18.7 million or 54 cents per share, beating the Zacks Consensus Estimate of 46 cents per share. In the prior-year quarter, the company had reported net income of $11.9 million or 35 cents per share. The year over year increase was primarily driven by a significant top-line growth.


Dycom’s total revenue surged 58.6% year over year to $512.7 million. The company’s organic contract revenues grew 10% after excluding revenues worth $157.1 million from its acquisitions in 2013. Revenues beat the Zacks Consensus Estimate of $485 million by 6.7%. The company’s revenues primarily benefited from the improving infrastructure industry in U.S. Also the company’s performance was boosted by an unprecedented growth in high-speed mobile internet business, in particular for wireless data and video, which has transformed the telecom industry into one of the most evolving industries.

Income and Expenses

The company reported adjusted EBITDA of $63.2 million compared with $40.4 million in the prior-year quarter.

The company’s general and administration expenses were $43.1 million versus $28.8 million in the prior-year quarter.

Balance Sheet and Cash Flow

Cash and cash equivalents decreased to $14.4 million at the quarter-end, compared with $18.6 million at the end of Jul 27, 2013. The company reported total equity of $461.0 million, compared with $428.4 million at the end of the previous quarter. The company’s long-term debt increased to $475.7 million compared with last year’s figure of $444.2 million.


Along with the earnings release, management provided guidance for the second quarter of fiscal 2014. Revenues for the second quarter of fiscal 2014 are expected to be in the range of $400 million to $420 million.

For the second quarter of fiscal 2014, the company expects diluted earnings per share to range from 3 cents to 9 cents.

Dycom currently carries a Zacks Rank #3 (Hold). Some other players within the sector that are worth mentioning include VSE Corp. , which carries a Zacks Rank #1 (Strong Buy), and Jiangsu Expressway Co. Ltd. and Rexnord Corporation (RXN - Free Report) , each carrying a Zacks Rank #2 (Buy).

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