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.
In the last reported quarter, its earnings and revenues surpassed the Zacks Consensus Estimate by 388.2% and 12.3%, respectively. Earnings rose massively to 83 cents from 2 cents reported a year ago. Revenues also increased 20.5% year over year. The upside was mainly backed by solid organic growth.
This specialty contracting services provider surpassed earnings estimates in each of the trailing four quarters.
Earnings & Revenue Expectations
The Zacks Consensus Estimate for Dycom’s fiscal first-quarter earnings has remained stable at 70 cents in the past 30 days. The estimated figure indicates a 37.3% increase on a year-over-year basis. The consensus estimate for revenues is pegged at $939.85 million, indicating a 7.3% year-over-year rise.
Dycom’s revenues and earnings are expected to have increased in the fiscal first quarter, given strong demand, extended geographic reach, proficient program management and network planning services. The company has been witnessing increased demand for network bandwidth and mobile broadband.
Impressive fiber-to-the-home deployments from six of its top 10 customers are likely to have contributed to fiscal first-quarter revenues. Moreover, it continues to book new contracts and renew existing ones on strong customer relationships.
For the quarter to be reported, DY expects contract revenues to grow in mid-to-high-single digits from the year-ago reported figure. Management anticipates the same to be $940.7 million in the fiscal first quarter.
The Zacks Consensus Estimate for first-quarter revenues in the Telecommunications segment is pegged at $843 million, indicating growth from the prior-quarter’s figure of $778.9 million. The same for the Underground Facility unit is pegged at $68 million, suggesting a fall from the prior-quarter’s level of $70.9 million. The consensus mark for Electrical and gas utilities and other business revenues is pegged at $29.16 million, indicating an increase from $26.5 million a year ago.
The Zacks Consensus Estimate for the quarter end backlog is pegged at $6.164 billion, indicating an increase from $5.593 billion reported in the prior quarter.
Yet, supply-chain challenges, tight labor and higher costs are likely to have put pressure on the company’s to-be-reported quarter’s performance. Dycom faces automotive and equipment supply chain challenges and foreign currency exchange rate risk. Fluctuations in oil prices are a major headwind for the company as the cost of conducting business is directly linked to an increase in fuel prices.
Notably, Dycom’s first quarter of every fiscal year is prone to seasonality. Each year, its first-quarter results are impacted by inclement weather, fewer available workdays, reduced daylight work hours and the restart of calendar payroll taxes. Considering these headwinds, the company projects modest improvement in the adjusted EBITDA margin.
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.
What the Zacks Model Says
Our proven model does not conclusively predict an earnings beat for Dycom this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. This is not the case here, as you will see below. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
MasTec, Inc. (MTZ - Free Report) reported first-quarter 2023 results, wherein earnings and revenues beat the Zacks Consensus Estimate. The company reported a wider loss per share from the year-ago figure. However, revenues increased on solid improvement across segments.
MTZ’s quarterly performance reflected the impact of project inefficiencies, mainly at acquired entities and relatively low volume in the Clean Energy and Oil & Gas segments that reduced fixed cost leverage.
EMCOR Group, Inc. (EME - Free Report) reported impressive first-quarter 2023 results, wherein earnings and revenues surpassed the Zacks Consensus Estimate and increased year over year.
Strong demand for EME’s services across several resilient non-residential market sectors and strength in the U.S. segments drove organic revenue growth by 10.1%.
KB Home (KBH - Free Report) reported better-than-expected first-quarter fiscal 2023 (ended Feb 28, 2023) results, defying the challenging housing market conditions. Its earnings and revenues beat the Zacks Consensus Estimate.
KBH’s quarterly revenues were at the high end of its guided range. Both operating and gross margins performed better than expected. KBH’s book value per share grew to $44.80, up 27% from a year ago.
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Shutterstock
Dycom (DY) to Report Q1 Earnings: Here's What to Expect
Dycom Industries, Inc. (DY - Free Report) is scheduled to report first-quarter fiscal 2024 results on May 24, before the opening bell.
In the last reported quarter, its earnings and revenues surpassed the Zacks Consensus Estimate by 388.2% and 12.3%, respectively. Earnings rose massively to 83 cents from 2 cents reported a year ago. Revenues also increased 20.5% year over year. The upside was mainly backed by solid organic growth.
This specialty contracting services provider surpassed earnings estimates in each of the trailing four quarters.
Earnings & Revenue Expectations
The Zacks Consensus Estimate for Dycom’s fiscal first-quarter earnings has remained stable at 70 cents in the past 30 days. The estimated figure indicates a 37.3% increase on a year-over-year basis. The consensus estimate for revenues is pegged at $939.85 million, indicating a 7.3% year-over-year rise.
Dycom Industries, Inc. Price and EPS Surprise
Dycom Industries, Inc. price-eps-surprise | Dycom Industries, Inc. Quote
Factors to Note
Dycom’s revenues and earnings are expected to have increased in the fiscal first quarter, given strong demand, extended geographic reach, proficient program management and network planning services. The company has been witnessing increased demand for network bandwidth and mobile broadband.
Impressive fiber-to-the-home deployments from six of its top 10 customers are likely to have contributed to fiscal first-quarter revenues. Moreover, it continues to book new contracts and renew existing ones on strong customer relationships.
For the quarter to be reported, DY expects contract revenues to grow in mid-to-high-single digits from the year-ago reported figure. Management anticipates the same to be $940.7 million in the fiscal first quarter.
The Zacks Consensus Estimate for first-quarter revenues in the Telecommunications segment is pegged at $843 million, indicating growth from the prior-quarter’s figure of $778.9 million. The same for the Underground Facility unit is pegged at $68 million, suggesting a fall from the prior-quarter’s level of $70.9 million. The consensus mark for Electrical and gas utilities and other business revenues is pegged at $29.16 million, indicating an increase from $26.5 million a year ago.
The Zacks Consensus Estimate for the quarter end backlog is pegged at $6.164 billion, indicating an increase from $5.593 billion reported in the prior quarter.
Yet, supply-chain challenges, tight labor and higher costs are likely to have put pressure on the company’s to-be-reported quarter’s performance. Dycom faces automotive and equipment supply chain challenges and foreign currency exchange rate risk. Fluctuations in oil prices are a major headwind for the company as the cost of conducting business is directly linked to an increase in fuel prices.
Notably, Dycom’s first quarter of every fiscal year is prone to seasonality. Each year, its first-quarter results are impacted by inclement weather, fewer available workdays, reduced daylight work hours and the restart of calendar payroll taxes. Considering these headwinds, the company projects modest improvement in the adjusted EBITDA margin.
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.
What the Zacks Model Says
Our proven model does not conclusively predict an earnings beat for Dycom this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. This is not the case here, as you will see below. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Dycom currently has an Earnings ESP of 0.00% and carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
A Few Construction Releases
MasTec, Inc. (MTZ - Free Report) reported first-quarter 2023 results, wherein earnings and revenues beat the Zacks Consensus Estimate. The company reported a wider loss per share from the year-ago figure. However, revenues increased on solid improvement across segments.
MTZ’s quarterly performance reflected the impact of project inefficiencies, mainly at acquired entities and relatively low volume in the Clean Energy and Oil & Gas segments that reduced fixed cost leverage.
EMCOR Group, Inc. (EME - Free Report) reported impressive first-quarter 2023 results, wherein earnings and revenues surpassed the Zacks Consensus Estimate and increased year over year.
Strong demand for EME’s services across several resilient non-residential market sectors and strength in the U.S. segments drove organic revenue growth by 10.1%.
KB Home (KBH - Free Report) reported better-than-expected first-quarter fiscal 2023 (ended Feb 28, 2023) results, defying the challenging housing market conditions. Its earnings and revenues beat the Zacks Consensus Estimate.
KBH’s quarterly revenues were at the high end of its guided range. Both operating and gross margins performed better than expected. KBH’s book value per share grew to $44.80, up 27% from a year ago.