Telecommunications company Dycom (NYSE: DY) will be announcing earnings results this Wednesday morning. Here’s what to look for.
Dycom beat analysts’ revenue expectations last quarter, reporting revenues of $1.96 billion, up 56.1% year on year. It was an incredible quarter for the company, with EBITDA guidance for next quarter exceeding analysts’ expectations and a beat of analysts’ EPS estimates.
Is Dycom a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Dycom’s revenue to grow 43.6% year on year, improving from the 14.5% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Dycom rarely misses Wall Street’s revenue estimates.
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 19.8%, beating analysts’ expectations by 9.4%, and Sterling reported revenues up 90.1%, topping estimates by 14.2%. EMCOR traded up 18.6% following the results while Sterling was down 11.4%.
Read our full analysis of EMCOR’s results here and Sterling’s results here.
Over the past year, investors have repeatedly shifted their focus from one macro narrative to another (AI disruption and AI capex spending to geopolitics, interest rates, and the broader health of the economy). While some of the engineering and design services stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 2.8% on average over the last month. Dycom is down 9.3% during the same time and is heading into earnings with an average analyst price target of $637.27 (compared to the current share price of $384.91).
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