We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Dycom's (DY) Stock Rises on Q4 Earnings & Revenue Beat
Read MoreHide Full Article
Dycom Industries Inc. (DY - Free Report) reported solid results for fourth-quarter fiscal 2023 (ended Jan 28, 2023). The top and bottom lines surpassed their respective Zacks Consensus Estimate and increased on a year-over-year basis. The upside was mainly backed by solid organic growth of the top five customers.
Shares of DY jumped 15.2% during the trading session on Mar 1.
Earnings & Revenue Discussion
Dycom’s adjusted earnings of 83 cents per share surpassed the Zacks Consensus Estimate of 17 cents by 388.2%. The quarterly earnings increased from the year-ago adjusted figure of 2 cents per share. The uptrend was driven by higher sales, solid adjusted EBITDA and lower depreciation and amortization costs.
Contract revenues of $917.5 million increased 20.5% year over year and topped the consensus mark of $817 million by 12.3%. Organically, contract revenues increased 20.5%. With the deployment of gigabit wireline networks, wireless/wireline converged networks and wireless networks, the company witnessed an increase in demand from four of its top five customers.
The company’s top five customers represented 65.8% of total contract revenues, which rose 24.4% organically. Revenues from all other customers increased 13.6% organically in the quarter. The quarter marks the 16th consecutive period of organic growth for DY’s all other customers in aggregate, excluding the top five.
Dycom’s largest customer AT&T (contributing 22.5% to total revenues), advanced 1.9% on an organic basis. This marked its eighth consecutive quarter of organic growth. Lumen (the second-largest customer) contributed 12% to total revenues and grew 64.6% organically. Comcast contributed 10.8%, while Frontier and Verizon represented 10.6% and 9.9% of total revenues, respectively. Frontier and Verizon rose 152.8% and 17.6% organically, respectively.
Fiber construction revenues from electric utilities increased 30.4% year over year, organically, and contributed 8.2% to total contract revenues in the quarter.
Dycom’s backlog at the end of the fiscal fourth quarter totaled $6.141 billion compared with $6.116 billion at the third quarter of fiscal 2023-end. Of the backlog, $3.459 billion is projected to be completed in the next 12 months.
Dycom Industries, Inc. Price, Consensus and EPS Surprise
Depreciation and amortization expenses of $36.7 million were down 1.6% year over year. General and administrative expenses of $72 million increased 12.8% year over year.
Adjusted EBITDA was $83.1 million during the quarter, up 91.9% year over year. Adjusted EBITDA margin of 9.1% expanded 340 bps from the year-ago level.
Financials
As of Jan 28, 2023, Dycom had liquidity of $757.8 million, including cash and cash equivalents worth $224.2 million (compared with $310.8 million on Jan 29, 2022). Long-term debt was $807.4 million at the end of fiscal 2023, down from $823.3 million at the fiscal 2022-end.
Fiscal Q1 2024 Guidance
For the fiscal first quarter (ending Apr 29, 2023), management expects contract revenues to grow in mid-to-high-single digits from the year-ago reported figure. The adjusted EBITDA margin is expected to increase modestly from the year-ago levels. For the period, Dycom expects the effective tax rate to be 26% and diluted shares of 29.8 million. Interest expense is likely to be $10.6 million.
EMCOR Group, Inc. (EME - Free Report) reported impressive fourth-quarter 2022 results wherein earnings and revenues surpassed the Zacks Consensus Estimate and increased year over year.
EME reported adjusted earnings of $2.63 per share, surpassing the consensus mark of $2.28 by 15.4% and increasing 39.2% from the year-ago quarter’s figure. Revenues totaled $2.95 billion, surpassing the consensus mark of $2.87 billion by 2.8% and rising 11.7% year over year. Organic revenues were up 10.5%, driven by double-digit revenue growth across the U.S. Construction and U.S. Building Services segments.
MasTec, Inc. (MTZ - Free Report) reported impressive results for fourth-quarter 2022, where earnings and revenues beat the Zacks Consensus Estimate. Earnings declined year over year, but revenues increased on accretive acquisitions and solid improvement across the segments (barring Oil and Gas).
At December 2022-end, MTZ had an 18-month backlog of $12.98 billion, up 13% from $9.94 billion a year ago and 16% from $11.23 billion sequentially.
Quanta Services Inc. (PWR - Free Report) has reported impressive results for fourth-quarter 2022. Adjusted earnings and revenues surpassed the Zacks Consensus Estimate and increased impressively on a year-over-year basis, reflecting the benefits of portfolio strategy and strategic capital deployment.
Notably, PWR's earnings beat the consensus mark in the trailing 11 quarters, whereas revenues surpassed the same in eight of the 11 consecutive quarters.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Shutterstock
Dycom's (DY) Stock Rises on Q4 Earnings & Revenue Beat
Dycom Industries Inc. (DY - Free Report) reported solid results for fourth-quarter fiscal 2023 (ended Jan 28, 2023). The top and bottom lines surpassed their respective Zacks Consensus Estimate and increased on a year-over-year basis. The upside was mainly backed by solid organic growth of the top five customers.
Shares of DY jumped 15.2% during the trading session on Mar 1.
Earnings & Revenue Discussion
Dycom’s adjusted earnings of 83 cents per share surpassed the Zacks Consensus Estimate of 17 cents by 388.2%. The quarterly earnings increased from the year-ago adjusted figure of 2 cents per share. The uptrend was driven by higher sales, solid adjusted EBITDA and lower depreciation and amortization costs.
Contract revenues of $917.5 million increased 20.5% year over year and topped the consensus mark of $817 million by 12.3%. Organically, contract revenues increased 20.5%. With the deployment of gigabit wireline networks, wireless/wireline converged networks and wireless networks, the company witnessed an increase in demand from four of its top five customers.
The company’s top five customers represented 65.8% of total contract revenues, which rose 24.4% organically. Revenues from all other customers increased 13.6% organically in the quarter. The quarter marks the 16th consecutive period of organic growth for DY’s all other customers in aggregate, excluding the top five.
Dycom’s largest customer AT&T (contributing 22.5% to total revenues), advanced 1.9% on an organic basis. This marked its eighth consecutive quarter of organic growth. Lumen (the second-largest customer) contributed 12% to total revenues and grew 64.6% organically. Comcast contributed 10.8%, while Frontier and Verizon represented 10.6% and 9.9% of total revenues, respectively. Frontier and Verizon rose 152.8% and 17.6% organically, respectively.
Fiber construction revenues from electric utilities increased 30.4% year over year, organically, and contributed 8.2% to total contract revenues in the quarter.
Dycom’s backlog at the end of the fiscal fourth quarter totaled $6.141 billion compared with $6.116 billion at the third quarter of fiscal 2023-end. Of the backlog, $3.459 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
Depreciation and amortization expenses of $36.7 million were down 1.6% year over year. General and administrative expenses of $72 million increased 12.8% year over year.
Adjusted EBITDA was $83.1 million during the quarter, up 91.9% year over year. Adjusted EBITDA margin of 9.1% expanded 340 bps from the year-ago level.
Financials
As of Jan 28, 2023, Dycom had liquidity of $757.8 million, including cash and cash equivalents worth $224.2 million (compared with $310.8 million on Jan 29, 2022). Long-term debt was $807.4 million at the end of fiscal 2023, down from $823.3 million at the fiscal 2022-end.
Fiscal Q1 2024 Guidance
For the fiscal first quarter (ending Apr 29, 2023), management expects contract revenues to grow in mid-to-high-single digits from the year-ago reported figure. The adjusted EBITDA margin is expected to increase modestly from the year-ago levels. For the period, Dycom expects the effective tax rate to be 26% and diluted shares of 29.8 million. Interest expense is likely to be $10.6 million.
Zacks Rank & Few Recent Construction Releases
Dycom currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
EMCOR Group, Inc. (EME - Free Report) reported impressive fourth-quarter 2022 results wherein earnings and revenues surpassed the Zacks Consensus Estimate and increased year over year.
EME reported adjusted earnings of $2.63 per share, surpassing the consensus mark of $2.28 by 15.4% and increasing 39.2% from the year-ago quarter’s figure. Revenues totaled $2.95 billion, surpassing the consensus mark of $2.87 billion by 2.8% and rising 11.7% year over year. Organic revenues were up 10.5%, driven by double-digit revenue growth across the U.S. Construction and U.S. Building Services segments.
MasTec, Inc. (MTZ - Free Report) reported impressive results for fourth-quarter 2022, where earnings and revenues beat the Zacks Consensus Estimate. Earnings declined year over year, but revenues increased on accretive acquisitions and solid improvement across the segments (barring Oil and Gas).
At December 2022-end, MTZ had an 18-month backlog of $12.98 billion, up 13% from $9.94 billion a year ago and 16% from $11.23 billion sequentially.
Quanta Services Inc. (PWR - Free Report) has reported impressive results for fourth-quarter 2022. Adjusted earnings and revenues surpassed the Zacks Consensus Estimate and increased impressively on a year-over-year basis, reflecting the benefits of portfolio strategy and strategic capital deployment.
Notably, PWR's earnings beat the consensus mark in the trailing 11 quarters, whereas revenues surpassed the same in eight of the 11 consecutive quarters.