Dycom shares slide as quarterly revenue misses estimates

[Construction site for installing fiber optic cables under the ground beside a street to bring fast internet to all residents, selected focus]
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Dycom Industries (NYSE:DY [https://seekingalpha.com/symbol/DY]) shares fell as much as 13% Wednesday to their lowest level in two months after the construction services firm reported [https://seekingalpha.com/news/4487361-dycom-industries-non-gaap-eps-of-3_33-beats-by-0_41-revenue-of-1_38b-misses-by-30m] mixed quarterly results, topping profit forecasts but falling short on sales.

For the fiscal second quarter ended July 26, Dycom (NYSE:DY [https://seekingalpha.com/symbol/DY]) posted contract revenue of $1.38 billion, up 14.5% from a year earlier but just shy of Wall Street’s $1.41 billion consensus. Adjusted earnings came in at $3.33 a share, comfortably above analyst estimates of $2.92, while net income climbed 43% to a record $97.5 million.

Adjusted earnings before interest, taxes, depreciation and amortization rose nearly 30% to $205.5 million, representing 14.9% of revenue. The company also reported operating cash flow of $57.4 million and a backlog of $8 billion.

Chief Executive Dan Peyovich in a statement said the results highlight “the strength of our strategy, disciplined execution and ability to capitalize on a rapidly expanding market,” pointing to accelerating demand for digital infrastructure and operational efficiencies that boosted margins.

Looking ahead, the company guided fiscal third-quarter revenue to a range of $1.38 billion to $1.43 billion, less than the consensus estimate of $1.46 billion. Management also said it expects earnings per share of $3.03 to $3.36, compared with Wall Street’s estimate of $3.15. For the full year, Dycom (DY [https://seekingalpha.com/symbol/DY]) maintained its outlook for growth of 12.5% to 15.4%, or $5.29 billion to $5.43 billion in revenue, compared with the consensus of $5.38 billion.

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