Yahoo Finance Dycom (DY) Gears Up to Report Q1 Earnings: What to Expect
Dycom Industries, Inc. DY is scheduled to report first-quarter fiscal 2025 results on May 22, before the opening bell.
In the last reported quarter, the company’s earnings missed the Zacks Consensus Estimate by 13.2% and declined 4.8% from a year ago. Contract revenues increased 3.8% year over year but lagged the consensus mark by 2%.
This specialty contracting services provider surpassed earnings estimates in three of the trailing four quarters, with an average of 53.9%.
Earnings & Revenue Expectations
The Zacks Consensus Estimate for Dycom’s fiscal first-quarter earnings per share (EPS) has moved up to $1.39 from $1.31 in the past 60 days. The estimated figure indicates a 19.7% decrease on a year-over-year basis.
Dycom Industries, Inc. Price and EPS Surprise
Dycom Industries, Inc. price-eps-surprise | Dycom Industries, Inc. Quote
The consensus estimate for revenues is pegged at $1.09 billion, indicating a 4.2 year-over-year rise.
Factors to Note
Dycom’s revenues are expected to have increased in the to-be-reported quarter, given the strong contribution from the Bigham acquisition. DY is banking on increased demand for network bandwidth and mobile broadband, an extended geographic reach, proficient program management and network planning services.
However, organic contract revenues and EPS are likely to have remained challenging due to lower contributions experienced from its top five customers. Also, challenges such as labor shortages and increased costs are expected to have exerted pressure on Dycom's quarterly performance. Fluctuations in oil prices pose a significant obstacle for DY, as higher fuel prices directly impact the cost of doing business.
For the quarter to be reported, DY expects organic contract revenues to range from in-line to slightly lower year over year, along with $60 million of acquired contract revenues. The adjusted EBITDA margin is expected to increase 25-75 basis points from the year-ago level.
Our model predicts the fiscal first-quarter revenues in the Telecommunications segment (excluding Bigham acquisition) to be $932.3 million, indicating a fall of 0.6% from the prior-quarter figure. Revenues for the Underground Facility unit are pegged at $72 million, down 1.4% from the prior-quarter level. The consensus mark for Electrical and gas utilities and other business revenues is pegged at $33.3 million, indicating a decrease of 2.9% year over year.
For the fiscal first quarter, we expect a backlog of $7.122 billion, indicating an increase from $6.316 billion reported in the prior quarter.
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.
Dycom currently has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Presently, DY carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Recent Construction Releases
Martin Marietta Materials, Inc. MLM reported mixed results for first-quarter 2024, with earnings surpassing the Zacks Consensus Estimate but revenues missed the same. Both the top and bottom lines decreased on a year-over-year basis.
Going forward, MLM anticipates record federal-level and state-level infrastructure investments, large-scale heavy industrial activity, data centers, and energy projects to offset softer residential and warehouse construction demand, as well as anticipated moderation in light non-residential activity. Impressively, MLM increased full-year adjusted EBITDA guidance to $2.37 billion at the midpoint.
Vulcan Materials Company VMC reported better-than-expected results for the first quarter of 2024, wherein earnings and revenues surpassed their respective Zacks Consensus Estimate.
On a year-over-year basis, both metrics decreased year over year due to lower Aggregate shipments.
Louisiana-Pacific Corporation LPX, or LP, reported impressive first-quarter 2024 results. Earnings and net sales beat their respective Zacks Consensus Estimate and increased on a year-over-year basis.
The impressive first-quarter performance was primarily propelled by several key factors. Notably, there was a noteworthy surge in demand for Siding and OSB, highlighted by a significant increase in volume.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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