Dycom (DY) Gears Up to Report Q4 Earnings: Factors to Note
Dycom Industries, Inc. DY is scheduled to report fourth-quarter fiscal 2024 results on Feb 28, before the opening bell.
In the last reported quarter, its earnings surpassed the Zacks Consensus Estimate by 59.3% and rose 56.7% from a year ago. Contract revenues also increased 9% year over year and topped the consensus mark by 6.3%.
This specialty contracting services provider surpassed earnings estimates in the trailing four quarters, with an average of 154.3%.
Earnings & Revenue Expectations
The Zacks Consensus Estimate for Dycom’s fiscal fourth-quarter earnings has remained stable at 91 cents in the past 60 days. The estimated figure indicates a 9.6% increase on a year-over-year basis.
Dycom Industries, Inc. Price and EPS Surprise
Dycom Industries, Inc. price-eps-surprise | Dycom Industries, Inc. Quote
The consensus estimate for revenues is pegged at $971.4 million, indicating a 5.9% year-over-year rise.
Factors to Note
Dycom’s revenues and earnings are expected to have increased in the fiscal fourth quarter, given strong demand, an extended geographic reach, proficient program management and network planning services. The company has been witnessing increased demand for network bandwidth and mobile broadband.
For the quarter to be reported, DY expects the top line to align with the year-ago reported figure, along with $50 million of acquired contract revenues. The adjusted EBITDA margin is expected to increase 75-125 basis points from the year-ago level.
Our model predicts the fiscal fourth-quarter revenues in the Telecommunications segment to be $875.5 million, indicating growth of 6.1% from the prior quarter’s figure. Revenues for the Underground Facility unit are pegged at $60.5 million, flat from the prior quarter’s level. The consensus mark for Electrical and gas utilities and other business revenues is pegged at $31 million, indicating a decrease of 2.4% year over year.
The Zacks Consensus Estimate for the fiscal fourth-quarter end backlog is pegged at $7.025 billion, indicating an increase from $6.141 billion reported in the prior quarter.
However, challenges such as labor shortages and increased costs are expected to have exerted pressure on Dycom's quarterly performance. The company is grappling with issues in the automotive and equipment supply chain, along with the risk associated with foreign currency exchange rates. Fluctuations in oil prices pose a significant obstacle for DY, as higher fuel prices directly impact the cost of doing business.
What the Zacks Model Says
Our proven model does not conclusively predict an earnings beat for Dycom this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. This is not the case here, as you will see below.
Dycom currently has an Earnings ESP of -7.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Presently, DY carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Recent Construction Releases
Quanta Services Inc. PWR reported better-than-expected results for fourth-quarter 2023, wherein adjusted earnings and revenues surpassed the Zacks Consensus Estimate. Both metrics increased on a year-over-year basis.
The company continues to experience high demand for its infrastructure solutions that support energy transition initiatives and increase reliability, safety and efficiency. Project activity associated with renewable generation has been going strong and is expected to continue throughout the year.
Martin Marietta Materials, Inc. MLM reported mixed fourth-quarter 2023 results, with earnings surpassing the Zacks Consensus Estimate and increasing on a year-over-year basis. Revenues missed the consensus mark but rose year over year.
Going forward, MLM anticipates strong demand for infrastructure, large-scale energy and domestic manufacturing projects. This will largely offset weaker residential demand and the anticipated softening in light non-residential activity. With mortgage rates stabilizing and affordability headwinds receding, MLM fully expects single-family residential construction to recover as demand still exceeds supply, particularly in its key markets.
Louisiana-Pacific Corporation LPX, or LP, reported impressive fourth-quarter 2023 results. Earnings and net sales beat their respective Zacks Consensus Estimate.
On a year-over-year basis, LPX’s earnings increased on reduced costs and inflationary pressure despite lower net sales.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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