Telecommunications company Dycom (NYSE: DY) will be reporting results tomorrow before market hours. Here’s what investors should know.
Dycom beat analysts’ revenue expectations by 5.7% last quarter, reporting revenues of $1.08 billion, up 13.9% year on year. It was an exceptional quarter for the company, with an impressive beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA 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 4.2% year on year to $1.19 billion, slowing from the 9.3% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.62 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Dycom has missed Wall Street’s revenue estimates three times over the last two years.
Looking at Dycom’s peers in the engineering and design services segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Sterling’s revenues decreased 2.1% year on year, beating analysts’ expectations by 5.4%, and EMCOR reported revenues up 12.7%, topping estimates by 2.2%. Sterling traded up 3.6% following the results while EMCOR’s stock price was unchanged.
Read our full analysis of Sterling’s results here and EMCOR’s results here.
There has been positive sentiment among investors in the engineering and design services segment, with share prices up 20.4% on average over the last month. Dycom is up 26.2% during the same time and is heading into earnings with an average analyst price target of $211.33 (compared to the current share price of $191.35).
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