Dycom Industries (NYSE:DY) Releases Quarterly Earnings Results, Beats Expectations By $0.57 EPS

Key Points

• Dycom beat quarterly expectations: Adjusted EPS came in at $5.29 versus the $4.72 consensus, while contract revenue rose 45.6% year over year to $2.006 billion and backlog increased 53.2% to $12.242 billion.
• Growth outlook remains strong: The company raised fiscal 2027 revenue guidance to $7.5 billion-$7.7 billion, supported by demand for fiber deployment and data-center infrastructure, and completed its acquisition of National Technology Integrators.
• Shares fell 7% amid cautious near-term guidance: Third-quarter adjusted EPS guidance of $4.33-$4.79 had a $4.56 midpoint below the $4.68 consensus, contributing to selling pressure despite analysts maintaining a “Moderate Buy” consensus and a $578.09 average price target.

Dycom Industries (NYSE:DY - Get Free Report) released its quarterly earnings data on Wednesday. The construction company reported $5.29 earnings per share (EPS) for the quarter, beating the consensus estimate of $4.72 by $0.57, FiscalAI reports. Dycom Industries had a net margin of 4.98% and a return on equity of 24.13%. Dycom Industries updated its Q3 2027 guidance to 4.330-4.790 EPS.

Dycom Industries Trading Down 7.0%

Shares of DY stock opened at $354.42 on Wednesday. The company has a market cap of $10.64 billion, a PE ratio of 33.72, a price-to-earnings-growth ratio of 0.67 and a beta of 1.54. Dycom Industries has a 1 year low of $242.55 and a 1 year high of $566.47. The stock's 50 day simple moving average is $427.20 and its two-hundred day simple moving average is $415.67. The company has a debt-to-equity ratio of 1.48, a current ratio of 2.58 and a quick ratio of 2.46.

Analysts Set New Price Targets

DY has been the topic of a number of research reports. Guggenheim lifted their price target on shares of Dycom Industries from $575.00 to $620.00 and gave the company a "buy" rating in a report on Thursday, May 28th. Wall Street Zen lowered Dycom Industries from a "strong-buy" rating to a "buy" rating in a research report on Saturday, July 25th. Zacks Research cut Dycom Industries from a "strong-buy" rating to a "hold" rating in a report on Monday, July 27th. JPMorgan Chase & Co. increased their price target on Dycom Industries from $415.00 to $650.00 and gave the company an "overweight" rating in a research note on Thursday, May 28th. Finally, Wedbush set a $654.00 price target on Dycom Industries in a report on Friday, May 29th. Eleven equities research analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the stock. Based on data from MarketBeat.com, Dycom Industries has an average rating of "Moderate Buy" and a consensus price target of $578.09.

Dycom Industries News Roundup

Here are the key news stories impacting Dycom Industries this week:

• Positive Sentiment: Strong quarterly beat: Adjusted EPS was $5.29, exceeding the $4.72 consensus estimate, while contract revenue rose 45.6% year over year to $2.006 billion. Adjusted EBITDA reached $315.5 million, or 15.7% of revenue. Dycom Industries Reports Record Fiscal 2027 Second Quarter Results
• Positive Sentiment: Backlog and outlook remain robust: Total backlog increased 53.2% to $12.242 billion, supported by demand for fiber deployment and data-center infrastructure. Dycom raised fiscal 2027 revenue guidance to $7.5 billion-$7.7 billion, broadly in line with the $7.6 billion analyst consensus, and completed its acquisition of National Technology Integrators. Dycom Earnings and Guidance
• Neutral Sentiment: Routine board change: Director Jennifer Fritzsche resigned, and Dycom announced a related board change. The announcement did not indicate a strategic or operational shift. Dycom Announces Routine Board Change
• Negative Sentiment: Third-quarter guidance fell short on EPS: Dycom forecast adjusted EPS of $4.33-$4.79, with a $4.56 midpoint below the $4.68 consensus estimate. Revenue guidance of $1.9 billion-$2.0 billion was generally consistent with expectations, but the earnings outlook leaves limited room for disappointment.
• Negative Sentiment: High expectations amplified selling pressure: Shares had already declined ahead of the report as investors reduced risk and locked in gains. Although the results were strong, the quarterly EPS outlook and in-line full-year revenue guidance may not have been sufficient to justify the stock’s previously elevated valuation.

Institutional Trading of Dycom Industries

Hedge funds and other institutional investors have recently bought and sold shares of the business. Kemnay Advisory Services Inc. bought a new stake in shares of Dycom Industries during the fourth quarter worth $30,000. Acumen Wealth Advisors LLC bought a new stake in Dycom Industries during the 4th quarter valued at about $35,000. EverSource Wealth Advisors LLC lifted its holdings in Dycom Industries by 73.1% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 161 shares of the construction company's stock valued at $39,000 after buying an additional 68 shares in the last quarter. IFP Advisors Inc boosted its position in Dycom Industries by 400.0% in the 3rd quarter. IFP Advisors Inc now owns 140 shares of the construction company's stock valued at $41,000 after buying an additional 112 shares during the period. Finally, Employees Retirement System of Texas bought a new position in Dycom Industries in the 3rd quarter worth about $75,000. Hedge funds and other institutional investors own 98.33% of the company's stock.

About Dycom Industries

Dycom Industries, Inc NYSE: DY is a leading provider of specialty contracting services to the telecommunications industry in North America. The company delivers engineering, construction, installation and maintenance solutions for communications infrastructure, supporting a broad range of network technologies and system architectures. Dycom's services span outside plant construction, cable placement, fiber optic deployment, wireless and wireline network engineering, as well as testing and turn-up services for voice, data and video applications.

Dycom's customer base includes major telecommunications carriers, cable operators, utility companies and competitive local exchange carriers.

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