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Bear of the Day: Dycom Industries, Inc. (DY)
Dycom Industries, Inc. (DY - Free Report) provides specialty contracting services to telecom service providers throughout the U.S. The company fell well short of our first quarter EPS estimates in late May and its consensus earnings estimates have slipped recently.
The Short Story
Dycom is a “leading provider of specialty contracting services,” for telecommunications providers. These offerings include everything from construction and engineering to underground facility locating, program management, and more. DY’s revenue slipped last year and it fell 11% during its first quarter of fiscal 2022, which ended on May 1.
Worst still, Dycom slipped from adjusted earnings of +$0.36 a share in the year-ago quarter to a loss of -$0.04 per share in Q1. This also came in well below the Zacks consensus estimate that called for +$0.13 a share. The first quarter marked its second-straight big miss and second adjusted loss in as many quarters.
Looking ahead, Zacks estimates call for Dycom’s fiscal 2022 earnings to fall 22% on roughly flat sales. The nearby chart also shows how far DY’s FY22 and FY23 consensus EPS estimates have dipped since its report, down 28% and 11%, respectively.
Bottom Line
Dycom’s recent earnings revisions activity helps it grab a Zacks Rank #5 (Strong Sell) right now. DY shares slipped around 2% during regular hours on Monday. More broadly, it has underperformed its industry in 2021, having moved roughly sideways, including some big swings, compared to its industry’s 22% climb.
The recent lagging performance is part of a much longer downward trend, with DY stock down 15% in the last five years. Therefore, investors might want to stay away from DY shares for now.
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