DY earnings beat but Q3 adjusted guidance midpoint trails estimates
Dycom (DY) reported Q2 adjusted earnings of $5.29 vs $4.72 estimate. Contract revenue rose to $2.01B. Q3 adjusted earnings guidance midpoint of $4.56 sits below $4.79 estimate; Q3 revenue view $1.90B-$1.98B vs $1.94B.
Dycom Industries Inc. (NYSE: DY ) on Wednesday posted upbeat second-quarter results but issued third-quarter adjusted earnings guidance with a midpoint below Wall Street estimates.
Dycom reported adjusted earnings of $5.29 per share, beating the $4.72 estimate.
Contract revenue climbed 45.6% year over year to $2.01 billion, topping the $1.98 billion estimate.
Organic revenue increased 16.7%.
Dycom raised its fiscal 2027 revenue forecast to $7.48 billion to $7.66 billion from $7.38 billion to $7.65 billion.
The consensus estimate is $7.62 billion.
For the third quarter, Dycom expects adjusted earnings of $4.33 to $4.79 per share.
The midpoint of $4.56 falls below the $4.79 estimate.
The company forecast quarterly revenue of $1.90 billion to $1.98 billion, compared with the $1.94 billion estimate. “Dycom delivered record organic first half revenue, increased profitability, and continued above-market growth,” said Dan Peyovich, Dycom’s President and Chief Executive Officer. “Demand across our portfolio is stronger than ever, fueled by a generational deployment of digital infrastructure that is projected to go well into the next decade.
We secured significant new awards, growing our backlog to a record level.
We also officially welcomed National Technology Integrators to the Dycom family, further enhancing our leadership in digital and critical infrastructure and diversifying our business.” Dycom Industries shares fell 0.8% to trade at $308.34 on Thursday.
These analysts made changes to their price targets on Dycom Industries following earnings announcement.
Cantor Fitzgerald analyst Manish A.
Somaiya maintained the stock with an Overweight rating and lowered the price target from $654 to $476.
Keybanc analyst Sangita Jain maintained the stock with an Overweight rating and cut the price target from $610 to $423.
Wells Fargo analyst Eric Luebchow maintained the stock with an Overweight rating and lowered the price target from $650 to $550.
UBS analyst Steven Fisher maintained the stock with a Buy and lowered the price target from $611 to $525.
Considering buying DY stock? Here’s what analysts think: Photo via Shutterstock