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Engineering and Design Services Stocks Q1 Earnings: Dycom (NYSE:DY) Firing on All Cylinders


Petr Huřťák /
2024/07/02 3:42 am EDT

As the Q1 earnings season comes to a close, it’s time to take stock of this quarter's best and worst performers in the engineering and design services industry, including Dycom (NYSE:DY) and its peers.

Companies providing engineering and design services boast ever-evolving technical expertise. Compared to their counterparts who manufacture and sell physical products, these companies can also pivot faster to more trending areas due to their smaller physical asset bases. Green energy and water conservation, for example, are current themes driving incremental demand in this space. On the other hand, those providing engineering and design services are at the whim of construction and infrastructure project volumes, which tend to be cyclical and can be impacted heavily by economic factors such as interest rates.

The 4 engineering and design services stocks we track reported a very strong Q1; on average, revenues beat analyst consensus estimates by 4.7%. while next quarter's revenue guidance was 1.9% below consensus. Stocks--especially those trading at higher multiples--had a strong end of 2023, but 2024 has seen periods of volatility. Mixed signals about inflation have led to uncertainty around rate cuts, and engineering and design services stocks have held roughly steady amidst all this, with share prices up 4% on average since the previous earnings results.

Best Q1: Dycom (NYSE:DY)

Modern internet and phone connectivity is thanks to companies like Dycom (NYSE:DY), who provide infrastructure, telecommunications, and utility contracting services.

Dycom reported revenues of $1.14 billion, up 9.3% year on year, topping analysts' expectations by 4.5%. It was an incredible quarter for the company, with an impressive beat of analysts' earnings estimates.

Dycom Total Revenue

The stock is up 8.4% since the results and currently trades at $167.48.

Is now the time to buy Dycom? Access our full analysis of the earnings results here, it's free.

EMCOR (NYSE:EME)

Through its network of over 70 subsidiaries, EMCOR (NYSE:EME) provides electrical, mechanical, and building construction and services

EMCOR reported revenues of $3.43 billion, up 18.7% year on year, outperforming analysts' expectations by 6.4%. It was a stunning quarter for the company, with an impressive beat of analysts' earnings estimates.

EMCOR Total Revenue

EMCOR scored the biggest analyst estimates beat, fastest revenue growth, and highest full-year guidance raise among its peers. The stock is up 6.2% since the results and currently trades at $359.66.

Is now the time to buy EMCOR? Access our full analysis of the earnings results here, it's free.

Weakest Q1: AECOM (NYSE:ACM)

Founded in 1990 when a group of engineers from five companies decided to merge, AECOM (NYSE:ACM) provides various infrastructure consulting services.

AECOM reported revenues of $3.94 billion, up 13% year on year, exceeding analysts' expectations by 5.5%. It was a decent quarter for the company, wit a beat of analysts' revenue estimates.

The stock is down 11.7% since the results and currently trades at $85.06.

Read our full analysis of AECOM's results here.

MasTec (NYSE:MTZ)

Involved in the 1996 Olympic Games MasTec (NYSE:MTZ) is an infrastructure construction company that specializes in the telecommunications, energy, and utility industries.

MasTec reported revenues of $2.69 billion, up 4% year on year, surpassing analysts' expectations by 2.5%. It was mixed quarter for the company, with a miss of analysts' earnings estimates.

MasTec had the weakest performance against analyst estimates, slowest revenue growth, and weakest full-year guidance update among its peers. The stock is up 13.1% since the results and currently trades at $103.

Read our full, actionable report on MasTec here, it's free.

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