Dycom Industries (NYSE:DY) Updates Q3 2027 Earnings Guidance

Key Points

• Q3 FY2027 guidance came in below EPS expectations: Dycom forecast EPS of $4.33–$4.79, below the $4.68 consensus midpoint, while revenue guidance of $1.9–$2.0 billion broadly matched expectations.
• Recent operating results and demand remain strong: Adjusted EPS of $5.29 beat estimates of $4.72, contract revenue rose 45.6% year over year to $2.006 billion, and backlog increased 53.2% to $12.242 billion. Fiscal 2027 revenue guidance was raised to $7.5–$7.7 billion.
• Shares fell 7% amid elevated expectations: Despite the strong quarterly results and a consensus analyst rating of “Moderate Buy,” investors appeared concerned about the below-consensus quarterly EPS outlook and Dycom’s high valuation.

Dycom Industries (NYSE:DY - Get Free Report) updated its third quarter 2027 earnings guidance on Wednesday morning. The company provided earnings per share (EPS) guidance of 4.330-4.790 for the period, compared to the consensus EPS estimate of 4.680. The company issued revenue guidance of $1.9 billion-$2.0 billion, compared to the consensus revenue estimate of $1.9 billion. Dycom Industries also updated its FY 2027 guidance to EPS.

Dycom Industries Stock Down 7.0%

Shares of NYSE:DY opened at $354.42 on Wednesday. The stock has a 50-day simple moving average of $427.20 and a 200-day simple moving average of $415.67. The stock has a market capitalization of $10.64 billion, a P/E ratio of 33.72, a PEG 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 company has a debt-to-equity ratio of 1.48, a quick ratio of 2.46 and a current ratio of 2.58.

Dycom Industries (NYSE:DY - Get Free Report) last posted its quarterly earnings results on Wednesday, August 26th. The construction company reported $5.29 EPS for the quarter, beating the consensus estimate of $4.72 by $0.57. Dycom Industries had a net margin of 4.98% and a return on equity of 24.13%. Dycom Industries has set its Q3 2027 guidance at 4.330-4.790 EPS. Equities analysts forecast that Dycom Industries will post 15.45 earnings per share for the current year.

Analyst Upgrades and Downgrades

Several brokerages recently commented on DY. Wall Street Zen downgraded Dycom Industries from a "strong-buy" rating to a "buy" rating in a report on Saturday, July 25th. Zacks Research cut shares of Dycom Industries from a "strong-buy" rating to a "hold" rating in a research report on Monday, July 27th. Wedbush set a $654.00 target price on Dycom Industries in a research note on Friday, May 29th. Guggenheim lifted their target price on Dycom Industries from $575.00 to $620.00 and gave the stock a "buy" rating in a research report on Thursday, May 28th. Finally, Weiss Ratings upgraded Dycom Industries from a "buy (b-)" rating to a "buy (b)" rating in a research note on Thursday, August 13th. Eleven analysts have rated the stock with a Buy rating and one has issued a Hold rating to the company's stock. According to data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and an average target price of $578.09.

Dycom Industries News Summary

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.

Hedge Funds Weigh In On Dycom Industries

A number of hedge funds have recently bought and sold shares of DY. Kemnay Advisory Services Inc. bought a new position in Dycom Industries during the 4th quarter worth approximately $30,000. Acumen Wealth Advisors LLC acquired a new position in Dycom Industries in the fourth quarter worth $35,000. EverSource Wealth Advisors LLC boosted its holdings in Dycom Industries by 73.1% in the second quarter. EverSource Wealth Advisors LLC now owns 161 shares of the construction company's stock worth $39,000 after purchasing an additional 68 shares during the period. IFP Advisors Inc increased its stake in Dycom Industries by 400.0% during the third quarter. IFP Advisors Inc now owns 140 shares of the construction company's stock valued at $41,000 after purchasing an additional 112 shares during the last quarter. Finally, Employees Retirement System of Texas acquired a new stake in shares of Dycom Industries during the third quarter worth $75,000. 98.33% of the stock is currently owned by institutional investors and hedge funds.

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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