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Dycom Industries Q1 EPS Grows Over 20x; Shares Up 17.5%

Story Highlights

Dycom Industries reported stronger-than-expected Q1 results, topping both earnings and revenue estimates, driven by robust activity and strong customer presence. The company provided a robust outlook for the second quarter, wherein revenues are expected to grow in the mid-teens to 20% year-over-year.

Dycom Industries (NYSE: DY) shares jumped almost 18% on May 25 to close at $94.21 after the company delivered a blowout first-quarter results driven by robust activity and significant customer presence throughout all its markets.

Florida-based Dycom is a leading provider of specialty contracting services throughout the U.S., including program management; planning; engineering and design; aerial, underground, and wireless construction; maintenance; and fulfillment services for telecommunications providers.

Q1 Beat

Markedly, GAAP earnings of $0.65 per share massively beat analysts’ expectations of $0.08 per share. Notably, it was much higher than the reported earnings of $0.03 per share in the prior-year period.

On top of that, revenues jumped 21.1% year-over-year to $876.3 million and exceeded consensus estimates of $779.5 million.

Robust Second Quarter Outlook

Based on robust Q1 results, management provided financial guidance for the second quarter of FY2022.

For the second quarter, revenues are projected to grow in the mid-teens to 20% year-over-year. Adjusted earnings are likely to range from in-line to modestly higher than the reported numbers in the prior-year quarter.

CEO’s Comments

Dycom Industries CEO Steven Nielsen commented, “As our nation and industry navigate some increased economic uncertainty, we remain encouraged that a growing number of our customers are committed to multiyear capital spending initiatives.”

He further added, “We are confident in our strategies, the prospects for our company, the capabilities of our dedicated employees and the experience of our management team.”

Wall Street’s Take

The Wall Street community is cautiously optimistic about the stock, with a Moderate Buy consensus rating based on 2 Buys. The average Dycom price target of $112.50 implies 19.41% upside potential to current levels.

Investors Weigh In

TipRanks’ Stock Investors tool shows that investors currently have a Very Positive stance on Dycom, with 10.9% of investors increasing their exposure to DY stock over the past 30 days.

Conclusion

Shares of Dycom have jumped 28.7% over the past year, impressively beating the underlying benchmark indexes.

The company stated that “Customers are consolidating supply chains, creating opportunities for market share growth and increasing the long-term value of our maintenance and operations business.”

The positive outlook provided by the company speaks of the robust demand and activity and bodes well for the stock, longer-term.

Read full Disclosure

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