Dycom Gears Up to Report Q1 Earnings: What's in Store for the Stock?

Dycom Industries, Inc. DY is scheduled to report first-quarter fiscal 2026 results on May 21, before the opening bell.

In the last reported quarter, the company’s earnings beat the Zacks Consensus Estimate by 28.6% and increased 48.1% from a year ago. Contract revenues increased 13.9% year over year and beat the consensus mark by 5.6%.

This specialty contracting services provider’s earnings surpassed estimates in each of the trailing four quarters, with an average of 27%.

Earnings & Revenue Expectations

The Zacks Consensus Estimate for Dycom’s fiscal first-quarter earnings per share (EPS) has remained stable at $1.60 in the past 30 days. The estimated figure indicates a 24.5% decrease on a year-over-year basis. (Find the latest earnings estimates and surprises on Zacks Earnings Calendar.)

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 $1.20 billion, indicating a 4.9% year-over-year rise.

Factors to Note Ahead of DY’s Q1 Results

Dycom’s revenues are expected to have increased in the to-be-reported quarter, driven by ongoing fiber-to-the-home deployments, long-haul fiber projects from hyperscalers and wireless equipment upgrades. The company is likely to have benefited from higher demand for network bandwidth, broader geographic presence and improved network planning services. Moreover, improving demand trends among DY’s top five customers and all other customers are likely to have contributed to the top-line performance.

For the fiscal first quarter, DY expects contract revenues to be between $1.16 billion and $1.20 billion. This represents a strong year-over-year increase from $1.14 billion reported in the year-ago quarter. The adjusted EBITDA is expected to be between $130.6 million and $140.6 million compared with $130.9 million reported in the year-ago quarter.

However, Dycom is expected to have faced seasonal softness in the fiscal first quarter, as winter weather likely affected the pace of project execution.

Our model predicts the fiscal first-quarter revenues in the Telecommunications segment  to be $1 billion, indicating a rise of 5.1% from the prior-year quarter figure. Revenues of the Underground Facility unit are projected at $86.3 million, up 6.5% from the prior-year quarter level. Electrical, gas utilities and other business revenues are projected at $34.6 million, indicating a slight year-over-year increase.

For the fiscal first quarter, we expect a backlog of $7.28 billion, indicating a decrease from $6.36 billion reported in the prior-year quarter.

However, challenges such as labor shortages and increased costs are expected to have exerted pressure on Dycom's quarterly performance. Fluctuations in oil prices pose a significant obstacle for DY, as higher fuel prices directly impact business costs. Dycom anticipates diluted EPS in the range of $1.50-$1.73 for the fiscal first quarter compared with $2.12 in the prior-year quarter.

Our model projects an adjusted EBITDA margin of 11.1%, down from 11.5% reported a year ago.

What the Zacks Model Says for DY

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 0.00%. 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

Owens Corning OC reported better-than-expected results for first-quarter 2025, wherein adjusted earnings and net sales surpassed the Zacks Consensus Estimate. This marks the 24th consecutive earnings beat for the company. Year over year, the top line grew while the bottom line declined.

The quarter’s performance was attributable to strong commercial and operational execution in mixed markets, including positive price-cost mix. During the quarter, the top line witnessed an uptrend mainly due to strong contributions from the Roofing and Doors segments, somewhat offset by softer performance of the Insulation segment. Despite the several external challenges, Owens Corning will focus on growing its business and profitability through 2025.

TopBuild Corp. BLD reported mixed results for the first quarter of 2025, wherein its adjusted earnings topped the Zacks Consensus Estimate and the net sales missed the same. Year over year, both metrics declined.

The quarterly performance reflects lower sales volume in the Installation segment, mainly due to softened housing demand caused by affordability concerns. However, strength in the Specialty Distribution segment somewhat offset the downward trend during the quarter. TopBuild remains optimistic about its opportunities in the maintenance and repair needs in the commercial and industrial sectors, along with the long-term growth expectations in the residential market.

Gibraltar Industries, Inc.’s ROCK first-quarter 2025 adjusted earnings topped the Zacks Consensus Estimate and grew year over year. On the other hand, net sales missed the consensus mark and tumbled year over year.

Gibraltar’s quarterly results reflect stable demand and performance in line with internal plans. Backlog increased 30% year over year to $434 million, reaching a record high. The company reported solid contributions from the Lane Supply acquisition. It also carried out restructuring actions and completed two additional acquisitions in the Residential segment to expand its presence in the metal roofing market.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research