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In the last reported quarter, its earnings and revenues surpassed their respective Zacks Consensus Estimate and increased year over year. The upside was mainly backed by solid organic growth and storm restoration services.
This specialty contracting services provider surpassed earnings estimates in three of the trailing four quarters and missed on another occasion.
Earnings & Revenue Expectations
The Zacks Consensus Estimate for Dycom’s fiscal second-quarter earnings has remained stable at 99 cents in the past 60 days. The estimated figure indicates a 65% increase on a year-over-year basis. The consensus estimate for revenues is pegged at $928.38 million, indicating an 11.9% year-over-year rise.
Dycom’s quarterly revenues and earnings are expected to have increased in the fiscal second 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. The impressive intension of fiber-to-the-home deployments from six of its top 10 customers is likely to have added to fiscal second-quarter growth. Moreover, it continues to book new contracts and renew existing ones on the back of strong customer relationships.
For the quarter-to-be-reported, DY expects contract revenues to grow in the mid-teens to 20% year over year.
The Zacks Consensus Estimate for its fiscal second-quarter revenues in the Telecommunications segment is pegged at $794 million, indicating a rise from the year-ago quarter’s figure of $698 million. The same for the Underground Facility unit is pegged at $78 million, suggesting an improvement from the year-ago quarter’s figure of $66 million. The consensus mark for Electrical and gas utilities and other business revenues is at $55 million, calling for an increase from $24.3 million a year ago.
The Zacks Consensus Estimate for the fiscal second-quarter backlog is pegged at $5.593 billion, indicating a decline from $5.895 billion reported in the year-ago period.
Yet, persistent impacts of the complexity of a large customer program, revenue challenges from other large customers and higher fuel costs are likely to have put pressure on the results in the to-be-reported quarter. Dycom is facing automotive and equipment supply chain challenges. The company expects the adjusted EBITDA margin to be in-line or increase modestly from the year-ago levels.
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.
Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Louisiana-Pacific Corporation or LP (LPX - Free Report) reported lackluster results for second-quarter 2022. Both the top and the bottom line missed their respective Zacks Consensus Estimate and decreased on a year-over-year basis.
On Aug 1, LPX completed the sale of the Engineered Wood Products (EWP) segment. Second-quarter results reflect the EWP segment as discontinued operations.
DHI also lowered its revenue guidance for the full year, given the expected completion dates of homes under construction and current market conditions.
Image: Bigstock
Dycom (DY) to Report Higher Earnings in Q2 on Strong Demand
Dycom Industries, Inc. (DY - Free Report) is scheduled to report second-quarter fiscal 2023 results on Aug 24, before the opening bell.
In the last reported quarter, its earnings and revenues surpassed their respective Zacks Consensus Estimate and increased year over year. The upside was mainly backed by solid organic growth and storm restoration services.
This specialty contracting services provider surpassed earnings estimates in three of the trailing four quarters and missed on another occasion.
Earnings & Revenue Expectations
The Zacks Consensus Estimate for Dycom’s fiscal second-quarter earnings has remained stable at 99 cents in the past 60 days. The estimated figure indicates a 65% increase on a year-over-year basis. The consensus estimate for revenues is pegged at $928.38 million, indicating an 11.9% 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 quarterly revenues and earnings are expected to have increased in the fiscal second 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. The impressive intension of fiber-to-the-home deployments from six of its top 10 customers is likely to have added to fiscal second-quarter growth. Moreover, it continues to book new contracts and renew existing ones on the back of strong customer relationships.
For the quarter-to-be-reported, DY expects contract revenues to grow in the mid-teens to 20% year over year.
The Zacks Consensus Estimate for its fiscal second-quarter revenues in the Telecommunications segment is pegged at $794 million, indicating a rise from the year-ago quarter’s figure of $698 million. The same for the Underground Facility unit is pegged at $78 million, suggesting an improvement from the year-ago quarter’s figure of $66 million. The consensus mark for Electrical and gas utilities and other business revenues is at $55 million, calling for an increase from $24.3 million a year ago.
The Zacks Consensus Estimate for the fiscal second-quarter backlog is pegged at $5.593 billion, indicating a decline from $5.895 billion reported in the year-ago period.
Yet, persistent impacts of the complexity of a large customer program, revenue challenges from other large customers and higher fuel costs are likely to have put pressure on the results in the to-be-reported quarter. Dycom is facing automotive and equipment supply chain challenges. The company expects the adjusted EBITDA margin to be in-line or increase modestly from the year-ago levels.
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.
Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Dycom currently carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Some Recent Construction Releases
Louisiana-Pacific Corporation or LP (LPX - Free Report) reported lackluster results for second-quarter 2022. Both the top and the bottom line missed their respective Zacks Consensus Estimate and decreased on a year-over-year basis.
On Aug 1, LPX completed the sale of the Engineered Wood Products (EWP) segment. Second-quarter results reflect the EWP segment as discontinued operations.
D.R. Horton, Inc.’s (DHI - Free Report) third-quarter fiscal 2022 earnings beat the Zacks Consensus Estimate, but revenues missed the same.
DHI also lowered its revenue guidance for the full year, given the expected completion dates of homes under construction and current market conditions.
UFP Industries, Inc. (UFPI - Free Report) reported stellar second-quarter 2022 results.
UFPI’s earnings and net sales beat the Zacks Consensus Estimate and increased on a year-over-year basis.