|
|
|
|
|||||
|
|
|
Dycom Industries Inc. DY reported better-than-expected results for the first quarter of fiscal 2026 (ended April 26). Contract revenues and adjusted earnings surpassed the Zacks Consensus Estimate. On a year-over-year basis, the top line grew while the bottom line tumbled.
DY stock rose 15.8% during yesterday’s trading session after the earnings announcement. The investors’ sentiments are likely to have been boosted by an upbeat fiscal second-quarter view and raised fiscal 2026 revenue guidance.
The quarter’s performance reflects market demand strength driving the backlog growth, benefits realized from the company’s business model and ongoing execution of its strategy. Also, contributions from the acquired businesses added to the uptrend.
Moreover, DY aims to maintain a disciplined capital allocation strategy, balancing acquisitions, share repurchases and organic expansion. Long-term demand visibility remains strong, with potential upside from federal broadband programs expected in the coming years.
Dycom reported adjusted earnings per share (EPS) of $2.09, which topped the Zacks Consensus Estimate of $1.60 by 30.6%. In the year-ago quarter, it reported an adjusted EPS of $2.12.
Dycom Industries, Inc. price-consensus-eps-surprise-chart | Dycom Industries, Inc. Quote
Contract revenues of $1.259 billion surpassed the consensus mark of $1.199 billion by 5% and grew 10.2% year over year. Contract revenues rose 0.7% on an organic basis. Acquired businesses contributed $111.9 million. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)
Dycom’s largest customer, AT&T, contributed 25.8% to total revenues and grew year over year by 50.9%. Lumen (the second-largest customer) contributed 9.9% to total revenues, which declined 20.2% from last year. Other customers, including Brightspeed, Charter, Comcast, Frontier, Lumen, Verizon and others, contributed 64.2% to the total revenues combined.
Adjusted EBITDA increased 14.9% to $150.4 million from a year ago. Adjusted EBITDA margin of 11.9% expanded 40 basis points (bps) from the year-ago level.
Dycom’s backlog as of the fiscal first quarter totaled $8.127 billion compared with $7.760 billion at the fiscal 2025 end and $6.364 billion as of the first quarter of fiscal 2025. Of the current backlog position, $4.685 billion is projected to be completed in the next 12 months.
As of April 26, 2025, Dycom had liquidity of $529.6 million, including cash and cash equivalents worth $16.1 million, compared with $92.7 million as of fiscal 2025-end. Long-term debt was $1.018 million as of the fiscal first quarter, up from $933.2 million at the fiscal 2025-end.
In fiscal 2025, DY repurchased 200,000 shares of its common stock for $30.2 million.
Dycom expects contract revenues between $1.38 billion and $1.43 billion for the second quarter of fiscal 2026. This compares with $1.203 billion reported in the year-ago quarter.
Adjusted EBITDA is expected to be between $185 million and $200 million, indicating growth from $158.3 million reported last year.
Dycom anticipates EPS in the range of $2.74-$3.05, up from $2.46 reported in the year-ago quarter.
Stock-based compensation is expected to be $8 million. Net interest expense is expected to be $15.7 million, with the effective tax rate projected to be 26%.
Owing to the favorable demand outlook and the upbeat fiscal first-quarter results, Dycom raised its revenue outlook for fiscal 2026. It now expects full-year revenues to be between $5.29 billion and $5.425 billion, reflecting 12.5-15.4% year-over-year growth. Previously, it expected revenues to grow between 10.0% and 13.0%. The forecast does not include storm restoration revenues.
Dycom currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Advanced Drainage Systems, Inc. WMS reported dismal results for the fourth quarter of fiscal 2025. Its adjusted earnings and net sales lagged the Zacks Consensus Estimate and tumbled on a year-over-year basis.
The gloomy quarterly performance reflects unfavorable impacts from higher interest rates and ongoing economic uncertainties. Moreover, adverse winter weather conditions this year against a favorable scenario in the year-ago quarter made comparisons weak, thus adding to the headwinds. Notably, Advanced Drainage Systems’ diversified market exposure across the United States, distinctive product mix, material conversion strategy and product innovation strategies position it well for navigating the market uncertainties.
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.
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).
| May-22 | |
| May-22 | |
| May-22 | |
| May-21 | |
| May-21 | |
| May-21 | |
| May-21 | |
| May-21 | |
| May-21 | |
| May-20 | |
| May-20 | |
| May-20 | |
| May-19 | |
| May-16 | |
| May-16 |
Join thousands of traders who make more informed decisions with our premium features. Real-time quotes, advanced visualizations, backtesting, and much more.
Learn more about FINVIZ*Elite