Dycom Earnings: What To Look For From DY

Telecommunications company Dycom (NYSE:DY) will be reporting results tomorrow before the bell. Here’s what to look for.

Dycom beat analysts’ revenue expectations by 4.5% last quarter, reporting revenues of $1.14 billion, up 9.3% year on year. It was an incredible quarter for the company, with an impressive beat of analysts’ earnings estimates.

Is Dycom a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting Dycom’s revenue to grow 15% year on year to $1.20 billion, improving from the 7.1% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $2.26 per share.

The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Dycom has only missed Wall Street’s revenue estimates once over the last two years, exceeding top-line expectations by 5.5% on average.

Looking at Dycom’s peers in the engineering and design services segment, some have already reported their Q2 results, giving us a hint as to what we can expect. EMCOR delivered year-on-year revenue growth of 20.4%, beating analysts’ expectations by 3.9%, and Sterling reported revenues up 11.6%, topping estimates by 4.1%. EMCOR traded up 2.2% following the results while Sterling was also up 3.2%.

Read our full analysis of EMCOR’s results here and Sterling’s results here.

Stocks--especially those trading at higher multiples--had a strong end of 2023, but 2024 has seen periods of volatility. Mixed inflation signals have led to uncertainty around rate cuts, and while some of the engineering and design services stocks have fared somewhat better, they have not been spared, with share prices down 3.7% on average over the last month. Dycom is up 7.6% during the same time and is heading into earnings with an average analyst price target of $197.9 (compared to the current share price of $194.61).

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