Dycom Industries (NYSE:DY) Posts Earnings Results, Beats Expectations By $1.69 EPS

Dycom Industries (NYSE:DY) released its quarterly earnings results on Wednesday. The construction company reported $4.42 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $2.73 by $1.69, FiscalAI reports. The business had revenue of $1.96 billion for the quarter, compared to the consensus estimate of $1.67 billion. Dycom Industries had a net margin of 4.98% and a return on equity of 24.13%. The business’s revenue was up 56.1% on a year-over-year basis. During the same period in the previous year, the firm earned $2.09 EPS. Dycom Industries updated its Q2 2027 guidance to 4.400-4.820 EPS.

Here are the key takeaways from Dycom Industries’ conference call:

• Dycom reported a very strong Q1, with revenue of $1.965 billion up 56% year over year and adjusted EBITDA of $262.5 million, both above the high end of expectations. Adjusted diluted EPS rose 85% to $4.42.
• Backlog reached a record $11.9 billion, up 25% sequentially, supported by a 2.2x book-to-bill. Management said the backlog is becoming more diversified across customers, geographies, and demand drivers.
• The company raised full-year fiscal 2027 revenue guidance to $7.38 billion-$7.65 billion, citing strong demand in fiber deployments and data center builds. Communications revenue is expected to grow organically, while Building Systems is now expected to deliver margins in the high teens.
• Dycom announced a definitive agreement to acquire National Technology Integrators, a low-voltage engineering and construction firm, to expand its data center capabilities. Management expects the deal to be immediately accretive and sees meaningful cross-selling opportunities with Power Solutions and the legacy communications business.
• Cash generation improved, with combined DSOs falling to 96 days and liquidity exceeding $1.28 billion, while pro forma net leverage was about 2.3x. Management said it remains disciplined on leverage even as it continues to pursue additional M&A.

Dycom Industries Trading Up 1.4%

NYSE DY opened at $536.67 on Friday. The company has a quick ratio of 2.61, a current ratio of 2.58 and a debt-to-equity ratio of 1.48. Dycom Industries has a 52 week low of $225.34 and a 52 week high of $566.47. The stock has a market capitalization of $16.11 billion, a PE ratio of 51.06, a price-to-earnings-growth ratio of 1.22 and a beta of 1.46. The firm has a 50 day moving average of $398.90 and a two-hundred day moving average of $375.72.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently added to or reduced their stakes in the company. Peconic Partners LLC grew its holdings in Dycom Industries by 2.8% during the 2nd quarter. Peconic Partners LLC now owns 3,817,825 shares of the construction company’s stock worth $933,038,000 after acquiring an additional 105,586 shares in the last quarter. First Trust Advisors LP grew its holdings in Dycom Industries by 3.4% during the 4th quarter. First Trust Advisors LP now owns 625,171 shares of the construction company’s stock worth $211,245,000 after acquiring an additional 20,306 shares in the last quarter. Price T Rowe Associates Inc. MD grew its holdings in Dycom Industries by 24.5% during the 4th quarter. Price T Rowe Associates Inc. MD now owns 558,519 shares of the construction company’s stock worth $188,725,000 after acquiring an additional 110,065 shares in the last quarter. Bank of America Corp DE grew its holdings in Dycom Industries by 15.2% during the 3rd quarter. Bank of America Corp DE now owns 354,225 shares of the construction company’s stock worth $103,349,000 after acquiring an additional 46,680 shares in the last quarter. Finally, Invesco Ltd. grew its holdings in Dycom Industries by 8.8% during the 3rd quarter. Invesco Ltd. now owns 247,042 shares of the construction company’s stock worth $72,077,000 after acquiring an additional 19,915 shares in the last quarter. Institutional investors and hedge funds own 98.33% of the company’s stock.

Analysts Set New Price Targets

A number of research firms have recently issued reports on DY. Bank of America boosted their price target on shares of Dycom Industries from $365.00 to $475.00 and gave the company a “buy” rating in a research note on Wednesday, February 25th. Wells Fargo & Company boosted their price target on shares of Dycom Industries from $500.00 to $650.00 and gave the company an “overweight” rating in a research note on Thursday. KeyCorp boosted their price target on shares of Dycom Industries from $426.00 to $482.00 and gave the company an “overweight” rating in a research note on Thursday, March 5th. Weiss Ratings cut shares of Dycom Industries from a “buy (b)” rating to a “buy (b-)” rating in a report on Wednesday, May 13th. Finally, UBS Group set a $475.00 price objective on shares of Dycom Industries and gave the company a “buy” rating in a report on Friday, March 6th. One investment analyst has rated the stock with a Strong Buy rating, eleven have issued a Buy rating and one has issued a Hold rating to the stock. According to data from MarketBeat, the company has a consensus rating of “Buy” and an average price target of $502.09.

Trending Headlines about Dycom Industries

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

• Positive Sentiment: Dycom delivered a major Q1 beat, reporting $4.42 EPS versus $2.73 expected and revenue of $1.96 billion versus $1.67 billion expected, which suggests strong demand and execution. Why Dycom Industries Stock Exploded Today
• Positive Sentiment: The company also raised guidance, with FY2027 revenue outlook lifted to about $7.4 billion-$7.7 billion and Q2 revenue guidance above Wall Street estimates, reinforcing optimism about the growth outlook. Why Dycom Industries Stock Exploded Today
• Positive Sentiment: Multiple analysts turned more constructive after the results, including JPMorgan raising its price target to $650, Wells Fargo to $650, B. Riley to $625, and Guggenheim to $620, signaling expectations for additional upside. Analyst price target updates
• Positive Sentiment: Dycom also hit a 52-week high, reflecting strong market momentum following the earnings surprise and improved outlook. Dycom Industries, Inc. (DY) Hit a 52 Week High, Can the Run Continue?
• Neutral Sentiment: The company announced upcoming participation in institutional investor events, which may help keep investor attention on the story but is not a direct operating catalyst. Dycom Industries, Inc. to Participate in Upcoming Institutional Investor Events

Dycom Industries Company Profile

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.