Dycom Earnings: What To Look For From DY

Telecommunications company Dycom (NYSE:DY) will be reporting earnings this Wednesday morning. Here’s what to expect.

Dycom beat analysts’ revenue expectations last quarter, reporting revenues of $1.45 billion, up 14.1% year on year. It was an exceptional quarter for the company, with a solid beat of analysts’ adjusted operating income estimates and an impressive beat of analysts’ EBITDA 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 25.7% year on year, improving from the 13.9% 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 to stay the course heading into earnings. Dycom has missed Wall Street’s revenue estimates multiple times over the last two years.

Looking at Dycom’s peers in the engineering and design services segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Sterling delivered year-on-year revenue growth of 51.5%, beating analysts’ expectations by 18.2%, and AECOM reported a revenue decline of 4.6%, topping estimates by 2.5%. Sterling traded down 4.8% following the results while AECOM was up 1.1%.

Read our full analysis of Sterling’s results here and AECOM’s results here.

There has been positive sentiment among investors in the engineering and design services segment, with share prices up 4.7% on average over the last month. Dycom is up 11.4% during the same time and is heading into earnings with an average analyst price target of $430.55 (compared to the current share price of $427.50).

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