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Dycom (DY) Reports Loss in Q4, Surpasses Revenue Estimates
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Dycom Industries Inc. (DY - Free Report) reported mixed results for fourth-quarter fiscal 2021 (ended Jan 30, 2021). Although its earnings missed the Zacks Consensus Estimate, the top line surpassed the same. Following the announcement, shares of the company jumped more than 12% on Mar 3.
Earnings & Revenue Discussion
Dycom reported an adjusted loss of 7 cents per share, missing the Zacks Consensus Estimate of earnings of 5 cents. However, the reported loss was narrower than the year-ago loss of 23 cents per share. Dycom experienced a broad-based improvement in the services performed despite the complexity of a large customer program. Also, lower-than-expected disruptions from the COVID-19 pandemic helped it record improved performance.
Contract revenues of $750.7 million rose 1.8% year over year and surpassed the consensus mark of $726.3 million by 3.4%. Organically, revenues (excluding $5.7 million of storm-restoration services in the quarter) fell 6.2% year over year. Nonetheless, the company witnessed solid demand from one of its top five customers.
Its top five customers contributed 69.4% to total contract revenues, which decreased 15.5% organically. Revenues from all other customers grew 25.3% organically for the quarter.
Dycom’s largest customer Comcast accounted for 18.8% of total revenues. AT&T (the second-largest customer) added 16.8% to total revenues, while Verizon made up 15.7% of revenues. Lumen Technologies accounted for 13.4%, while Windstream Corporation represented 4.8% of total revenues.
Dycom’s backlog at the end of the reported quarter totaled $6.810 billion, comparing unfavorably with $7.314 billion at the end of fiscal 2020. Nonetheless, the backlog level grew sequentially from $5.412 billion at the end of the October-end quarter. Of the backlog, $2.787 billion is projected to be completed in the next 12 months.
Dycom Industries, Inc. Price, Consensus and EPS Surprise
Adjusted EBITDA margin of 6.1% expanded 10 bps from the year-ago level. Non-GAAP adjusted gross margins were at 14.3% in the quarter, up 10 bps a year ago.
General and administrative expenses increased 25 bps year over year in the quarter, reflecting higher performance-based compensation, offset in part by lower administrative costs.
Financials
As of Jan 30, 2021, Dycom had cash and cash equivalents worth $11.8 million compared with $54.6 million as of Jan 25, 2020. Long-term debt was $501.6 million at the end of the reported quarter compared with $844.4 million at the end of fiscal 2020.
Fiscal 2021 Highlights
Total revenues were $3,199.2 million, down 4.2% from $3,339.7 million in 2020.
Adjusted EBITDA was $311 million compared with $310 million in 2020.
Adjusted earnings per share were $2.54 compared with $2.27 in 2020.
1Q22 Outlook
For first-quarter fiscal 2022, the company expects contract revenues to be in line to modestly lower. Non-GAAP Adjusted EBITDA, as a percentage of contract revenues, is anticipated to be in line to modestly higher. The company expects its results to be impacted by the adverse impacts of winter weather conditions experienced in many regions of the country
Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early. See Zacks' 3 Best Stocks to Play This Trend >>
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Dycom (DY) Reports Loss in Q4, Surpasses Revenue Estimates
Dycom Industries Inc. (DY - Free Report) reported mixed results for fourth-quarter fiscal 2021 (ended Jan 30, 2021). Although its earnings missed the Zacks Consensus Estimate, the top line surpassed the same. Following the announcement, shares of the company jumped more than 12% on Mar 3.
Earnings & Revenue Discussion
Dycom reported an adjusted loss of 7 cents per share, missing the Zacks Consensus Estimate of earnings of 5 cents. However, the reported loss was narrower than the year-ago loss of 23 cents per share. Dycom experienced a broad-based improvement in the services performed despite the complexity of a large customer program. Also, lower-than-expected disruptions from the COVID-19 pandemic helped it record improved performance.
Contract revenues of $750.7 million rose 1.8% year over year and surpassed the consensus mark of $726.3 million by 3.4%. Organically, revenues (excluding $5.7 million of storm-restoration services in the quarter) fell 6.2% year over year. Nonetheless, the company witnessed solid demand from one of its top five customers.
Its top five customers contributed 69.4% to total contract revenues, which decreased 15.5% organically. Revenues from all other customers grew 25.3% organically for the quarter.
Dycom’s largest customer Comcast accounted for 18.8% of total revenues. AT&T (the second-largest customer) added 16.8% to total revenues, while Verizon made up 15.7% of revenues. Lumen Technologies accounted for 13.4%, while Windstream Corporation represented 4.8% of total revenues.
Dycom’s backlog at the end of the reported quarter totaled $6.810 billion, comparing unfavorably with $7.314 billion at the end of fiscal 2020. Nonetheless, the backlog level grew sequentially from $5.412 billion at the end of the October-end quarter. Of the backlog, $2.787 billion is projected to be completed in the next 12 months.
Dycom Industries, Inc. Price, Consensus and EPS Surprise
Dycom Industries, Inc. price-consensus-eps-surprise-chart | Dycom Industries, Inc. Quote
Operating Highlights
Adjusted EBITDA margin of 6.1% expanded 10 bps from the year-ago level. Non-GAAP adjusted gross margins were at 14.3% in the quarter, up 10 bps a year ago.
General and administrative expenses increased 25 bps year over year in the quarter, reflecting higher performance-based compensation, offset in part by lower administrative costs.
Financials
As of Jan 30, 2021, Dycom had cash and cash equivalents worth $11.8 million compared with $54.6 million as of Jan 25, 2020. Long-term debt was $501.6 million at the end of the reported quarter compared with $844.4 million at the end of fiscal 2020.
Fiscal 2021 Highlights
Total revenues were $3,199.2 million, down 4.2% from $3,339.7 million in 2020.
Adjusted EBITDA was $311 million compared with $310 million in 2020.
Adjusted earnings per share were $2.54 compared with $2.27 in 2020.
1Q22 Outlook
For first-quarter fiscal 2022, the company expects contract revenues to be in line to modestly lower. Non-GAAP Adjusted EBITDA, as a percentage of contract revenues, is anticipated to be in line to modestly higher. The company expects its results to be impacted by the adverse impacts of winter weather conditions experienced in many regions of the country
Zacks Rank
Dycom, which shares space with EMCOR Group, Inc. (EME - Free Report) , MasTec, Inc. (MTZ - Free Report) and Primoris Services Corporation (PRIM - Free Report) in the Zacks Building Products - Heavy Construction industry, currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Hottest Tech Mega-Trend of All
Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>