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 (DY) to Report Q3 Earnings: What's in the Offing?
Read MoreHide Full Article
Dycom Industries, Inc. (DY - Free Report) is slated to report third-quarter fiscal 2019 results on Nov 20, before the opening bell.
This specialty contracting services provider, which shares space in the Building Products - Heavy Construction industry with EMCOR Group, Inc. (EME - Free Report) and MasTec, Inc. (MTZ - Free Report) , met the Zacks Consensus Estimate in the last reported quarter. However, adjusted earnings declined 28.6% year over year owing to approximately $1 million of higher tax expense and slower large-scale deployments.
Shares of Dycom have lost 36.2%, comparing unfavorably with the industry’s fall of 17.3% so far this year. Earnings estimates for the to-be-reported quarter as well as current year have remained stable over the past 60 days.
Let’s See How Things are Shaping Up for This Announcement
Dycom’s results are likely to be impacted by timing volatility, customer spending modulations and an adverse mix of work activities. Also, under-absorption of labor and field costs might hurt its margins in the to-be-reported quarter. In the past six months, gross margins were down 271 basis points year over year, reflecting under-absorption of labor and field costs of large customer programs. Also, its non-GAAP earnings of $1.70 per share declined 38.6% year over year in the same period. Given the above-mentioned factors, Dycom’s earnings are likely to be impacted in the near term as well.
For the fiscal third quarter, the Zacks Consensus Estimate for earnings is pegged at 90 cents, reflecting a 9.09% decrease from the prior-year quarter.
Nevertheless, Dycom’s business primarily benefits from rising demand for network bandwidth and mobile broadband, given the proliferation of smart phones. Majority of industry participants are deploying significant wireline networks to offer bandwidth-enabling 1-gigabit speeds. The company has been immensely benefiting from extensive deployment of 1-gigabit wireline networks by major customers. Meanwhile, Dycom’s strong financial position coupled with diligent operational execution allow it to undertake strategic initiatives for expanding market share, thereby helping to drive top-line growth of the company.
Dycom’s backlog came in at $7.881 billion as of Jul 28, 2018, up 34.1% year over year. The company is expecting to complete nearly 37% of this backlog in the next 12 months. In this regard, we see the company’s string of contract wins and strong customer relationships to act as growth drivers.
Consequently, the Zacks Consensus Estimate for revenues stands at $805.8 million, reflecting a 6.6% increase from the prior-year figure.
What Does the Zacks Model Say?
Our proven model does not conclusively show that Dycom is likely to beat estimates in the to-be-reported quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen.
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 #2.
Meanwhile, we caution against stocks with a Zacks Rank #4 and 5 (Sell rated) going into the earnings announcement, especially when the company is seeing negative estimate revisions. You can see the complete list of today’s Zacks #1 Rank stocks here.
Stock Worth a Look
Here is a construction sector that you may want to consider, as our model shows that it has the right combination of elements to post an earnings beat in the upcoming release:
Toll Brothers Inc. (TOL - Free Report) has an Earnings ESP of +3.68% and a Zacks Rank #3. The company is slated to report quarterly results on Dec 5.
Wall Street’s Next Amazon
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.
Image: Bigstock
Dycom (DY) to Report Q3 Earnings: What's in the Offing?
Dycom Industries, Inc. (DY - Free Report) is slated to report third-quarter fiscal 2019 results on Nov 20, before the opening bell.
.jpg)
This specialty contracting services provider, which shares space in the Building Products - Heavy Construction industry with EMCOR Group, Inc. (EME - Free Report) and MasTec, Inc. (MTZ - Free Report) , met the Zacks Consensus Estimate in the last reported quarter. However, adjusted earnings declined 28.6% year over year owing to approximately $1 million of higher tax expense and slower large-scale deployments.
Shares of Dycom have lost 36.2%, comparing unfavorably with the industry’s fall of 17.3% so far this year. Earnings estimates for the to-be-reported quarter as well as current year have remained stable over the past 60 days.
Let’s See How Things are Shaping Up for This Announcement
Dycom’s results are likely to be impacted by timing volatility, customer spending modulations and an adverse mix of work activities. Also, under-absorption of labor and field costs might hurt its margins in the to-be-reported quarter. In the past six months, gross margins were down 271 basis points year over year, reflecting under-absorption of labor and field costs of large customer programs. Also, its non-GAAP earnings of $1.70 per share declined 38.6% year over year in the same period. Given the above-mentioned factors, Dycom’s earnings are likely to be impacted in the near term as well.
For the fiscal third quarter, the Zacks Consensus Estimate for earnings is pegged at 90 cents, reflecting a 9.09% decrease from the prior-year quarter.
Dycom Industries, Inc. Price and EPS Surprise
Dycom Industries, Inc. Price and EPS Surprise | Dycom Industries, Inc. Quote
Nevertheless, Dycom’s business primarily benefits from rising demand for network bandwidth and mobile broadband, given the proliferation of smart phones. Majority of industry participants are deploying significant wireline networks to offer bandwidth-enabling 1-gigabit speeds. The company has been immensely benefiting from extensive deployment of 1-gigabit wireline networks by major customers. Meanwhile, Dycom’s strong financial position coupled with diligent operational execution allow it to undertake strategic initiatives for expanding market share, thereby helping to drive top-line growth of the company.
Dycom’s backlog came in at $7.881 billion as of Jul 28, 2018, up 34.1% year over year. The company is expecting to complete nearly 37% of this backlog in the next 12 months. In this regard, we see the company’s string of contract wins and strong customer relationships to act as growth drivers.
Consequently, the Zacks Consensus Estimate for revenues stands at $805.8 million, reflecting a 6.6% increase from the prior-year figure.
What Does the Zacks Model Say?
Our proven model does not conclusively show that Dycom is likely to beat estimates in the to-be-reported quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen.
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 #2.
Meanwhile, we caution against stocks with a Zacks Rank #4 and 5 (Sell rated) going into the earnings announcement, especially when the company is seeing negative estimate revisions. You can see the complete list of today’s Zacks #1 Rank stocks here.
Stock Worth a Look
Here is a construction sector that you may want to consider, as our model shows that it has the right combination of elements to post an earnings beat in the upcoming release:
Toll Brothers Inc. (TOL - Free Report) has an Earnings ESP of +3.68% and a Zacks Rank #3. The company is slated to report quarterly results on Dec 5.
Wall Street’s Next Amazon
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.
Click for details >>