Telecommunications company Dycom (NYSE:DY) will be announcing earnings results tomorrow morning. Here’s what to expect.
Dycom met analysts’ revenue expectations last quarter, reporting revenues of $1.20 billion, up 15.5% year on year. It was a strong quarter for the company, with an impressive beat of analysts’ adjusted operating income estimates and a decent beat of analysts’ EPS estimates.
Is Dycom a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Dycom’s revenue to grow 7.3% year on year to $1.22 billion, slowing from the 9% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $2.31 per share.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Dycom has only missed Wall Street’s revenue estimates once over the last two years, exceeding top-line expectations by 5.1% on average.
Looking at Dycom’s peers in the engineering and design services segment, some have already reported their Q3 results, giving us a hint as to what we can expect. AECOM delivered year-on-year revenue growth of 7%, meeting analysts’ expectations, and MasTec reported flat revenue, falling short of estimates by 5.4%. MasTec traded up 5.7% following the results.
Read our full analysis of AECOM’s results here and MasTec’s results here.
There has been positive sentiment among investors in the engineering and design services segment, with share prices up 3.1% on average over the last month. Dycom is down 3.4% during the same time and is heading into earnings with an average analyst price target of $215.63 (compared to the current share price of $195.85).
Unless you’ve been living under a rock, it should be obvious by now that generative AI is going to have a huge impact on how large corporations do business. While Nvidia and AMD are trading close to all-time highs, we prefer a lesser-known (but still profitable) semiconductor stock benefitting from the rise of AI. Click here to access our free report on our favorite semiconductor growth story.