Dycom Industries (NYSE:DY) Issues Earnings Results, Beats Estimates By $1.69 EPS

Dycom Industries (NYSE:DY) posted its earnings results on Wednesday. The construction company reported $4.42 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $2.73 by $1.69, FiscalAI reports. The company had revenue of $1.96 billion during the quarter, compared to the consensus estimate of $1.67 billion. Dycom Industries had a net margin of 5.07% and a return on equity of 21.77%. The firm’s quarterly revenue was up 56.1% on a year-over-year basis. During the same period in the previous year, the firm posted $2.09 earnings per share. Dycom Industries updated its Q2 2027 guidance to 4.400-4.820 EPS.

Here are the key takeaways from Dycom Industries’ conference call:

• Dycom reported a very strong Q1, with revenue of $1.965 billion up 56% year over year and adjusted EBITDA of $262.5 million, both above the high end of expectations. Adjusted diluted EPS rose 85% to $4.42.
• Backlog reached a record $11.9 billion, up 25% sequentially, supported by a 2.2x book-to-bill. Management said the backlog is becoming more diversified across customers, geographies, and demand drivers.
• The company raised full-year fiscal 2027 revenue guidance to $7.38 billion-$7.65 billion, citing strong demand in fiber deployments and data center builds. Communications revenue is expected to grow organically, while Building Systems is now expected to deliver margins in the high teens.
• Dycom announced a definitive agreement to acquire National Technology Integrators, a low-voltage engineering and construction firm, to expand its data center capabilities. Management expects the deal to be immediately accretive and sees meaningful cross-selling opportunities with Power Solutions and the legacy communications business.
• Cash generation improved, with combined DSOs falling to 96 days and liquidity exceeding $1.28 billion, while pro forma net leverage was about 2.3x. Management said it remains disciplined on leverage even as it continues to pursue additional M&A.

Dycom Industries Price Performance

Shares of Dycom Industries stock opened at $524.75 on Thursday. The business has a 50 day simple moving average of $395.39 and a two-hundred day simple moving average of $373.96. Dycom Industries has a 12 month low of $225.30 and a 12 month high of $566.47. The stock has a market capitalization of $15.75 billion, a P/E ratio of 54.66, a PEG ratio of 0.97 and a beta of 1.46. The company has a debt-to-equity ratio of 1.51, a current ratio of 2.74 and a quick ratio of 2.61.

Analysts Set New Price Targets

A number of research analysts have weighed in on DY shares. B. Riley Financial lifted their price objective on shares of Dycom Industries from $420.00 to $485.00 and gave the company a “buy” rating in a report on Thursday, March 5th. Weiss Ratings cut shares of Dycom Industries from a “buy (b)” rating to a “buy (b-)” rating in a report on Wednesday, May 13th. JPMorgan Chase & Co. lifted their price objective on shares of Dycom Industries from $395.00 to $415.00 and gave the company an “overweight” rating in a report on Thursday, March 5th. Cantor Fitzgerald reaffirmed an “overweight” rating and issued a $436.00 price objective on shares of Dycom Industries in a report on Friday, March 27th. Finally, Wall Street Zen cut shares of Dycom Industries from a “strong-buy” rating to a “buy” rating in a report on Saturday, March 7th. One equities research analyst has rated the stock with a Strong Buy rating, eleven have given a Buy rating and one has given a Hold rating to the company’s stock. According to data from MarketBeat.com, the stock presently has an average rating of “Buy” and an average target price of $431.64.

Hedge Funds Weigh In On Dycom Industries

Hedge funds have recently made changes to their positions in the company. Kemnay Advisory Services Inc. acquired a new position in shares of Dycom Industries during the fourth quarter valued at approximately $30,000. Acumen Wealth Advisors LLC acquired a new position in shares of Dycom Industries during the fourth quarter valued at approximately $35,000. IFP Advisors Inc raised its holdings in shares of Dycom Industries by 400.0% during the third quarter. IFP Advisors Inc now owns 140 shares of the construction company’s stock valued at $41,000 after acquiring an additional 112 shares during the last quarter. EverSource Wealth Advisors LLC grew its stake in Dycom Industries by 73.1% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 161 shares of the construction company’s stock valued at $39,000 after acquiring an additional 68 shares in the last quarter. Finally, Employees Retirement System of Texas purchased a new stake in Dycom Industries during the 3rd quarter valued at about $75,000. Institutional investors and hedge funds own 98.33% of the company’s stock.

Trending Headlines about Dycom Industries

Here are the key news stories impacting Dycom Industries this week:

• Positive Sentiment: Dycom reported record Q1 contract revenues of $1.965 billion, up 56.1% year over year, and adjusted EPS of $4.42, far above estimates of $2.73. Article Title
• Positive Sentiment: The company raised full-year fiscal 2027 guidance, with revenue now expected at $7.38 billion to $7.65 billion and Q2 EPS guidance of $4.40 to $4.82, both above Wall Street expectations. Article Title
• Positive Sentiment: Backlog jumped 46.5% to $11.906 billion, signaling strong future demand, and Dycom also announced the acquisition of National Technology Integrators to expand its data center infrastructure business. Article Title
• Neutral Sentiment: Several articles recapped the earnings call and highlighted investor interest in Dycom’s telecom and fiber infrastructure exposure, but these were mostly summaries rather than new catalysts. Article Title
• Neutral Sentiment: The company also announced upcoming participation in institutional investor events, which supports visibility but is unlikely to be a major near-term stock driver. Article Title

About Dycom Industries

Dycom Industries, Inc (NYSE: DY) is a leading provider of specialty contracting services to the telecommunications industry in North America. The company delivers engineering, construction, installation and maintenance solutions for communications infrastructure, supporting a broad range of network technologies and system architectures. Dycom’s services span outside plant construction, cable placement, fiber optic deployment, wireless and wireline network engineering, as well as testing and turn-up services for voice, data and video applications.

Dycom’s customer base includes major telecommunications carriers, cable operators, utility companies and competitive local exchange carriers.