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Inclement Weather to Reflect on Dycom's (DY) Q1 Earnings

·3 min read

Dycom Industries, Inc. DY is scheduled to report first-quarter fiscal 2022 results on May 25, before the opening bell.

In the last reported quarter, it reported mixed results. Although its earnings missed the Zacks Consensus Estimate, the top line surpassed the same. Dycom incurred adjusted loss of 7 cents per share, narrower than the year-ago loss of 23 cents. Meanwhile, contract revenues of $750.7 million rose 1.8% year over year.

This specialty contracting services provider — which shares space in the Building Products - Heavy Construction industry with EMCOR Group, Inc. EME, MasTec, Inc. MTZ and North American Construction Group Ltd. NOA — surpassed earnings estimates in two of the trailing four quarters, missed once and matched the same on another occasion.

Earnings & Revenue Expectations

The Zacks Consensus Estimate for Dycom’s fiscal first-quarter earnings has decreased to 13 cents from 20 cents per share over the past 30 days. The estimated figure indicates a 63.9% decline on a year-over-year basis. The consensus estimate for revenues is $766.3 million, indicating 5.9% year-over-year fall.

Dycom Industries, Inc. Price and EPS Surprise

Dycom Industries, Inc. Price and EPS Surprise
Dycom Industries, Inc. Price and EPS Surprise

Dycom Industries, Inc. price-eps-surprise | Dycom Industries, Inc. Quote

Factors to Note

Dycom’s revenues and earnings are expected to have declined in the fiscal first quarter due to lower contributions from top five customers on account of challenging market conditions, project delays as well as uncertain customer plans. Also, challenges surrounding a large customer program may have added to the woes. Also, the company expects the quarterly results to be impacted by the adverse impacts of winter weather conditions experienced in many regions of the country.

Nonetheless, it expects the impact of this large customer program to decline in fiscal 2022. The company expects contract revenues to be in line to modestly lower sequentially for the to-be-reported quarter. Also, non-GAAP adjusted EBITDA — as a percentage of contract revenues — is anticipated to be in line or modestly higher sequentially.

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.

Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is -68.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Dycom currently carries a Zacks Rank #4 (Sell). You can see the complete list of today’s Zacks #1 Rank stocks here.

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EMCOR Group, Inc. (EME) : Free Stock Analysis Report

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