Telecommunications company Dycom (NYSE: DY) will be reporting earnings this Wednesday before the bell. Here’s what to expect.
Dycom beat analysts’ revenue expectations by 5.7% last quarter, reporting revenues of $1.26 billion, up 10.2% year on year. It was an exceptional quarter for the company, with a beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA 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 17.5% year on year to $1.41 billion, improving from the 15.5% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $2.92 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 missed Wall Street’s revenue estimates twice over the last two years.
Looking at Dycom’s peers in the engineering and design services segment, some have already reported their Q2 results, giving us a hint as to what we can expect. EMCOR delivered year-on-year revenue growth of 17.4%, beating analysts’ expectations by 4.9%, and Sterling reported revenues up 5.4%, topping estimates by 10.8%. EMCOR traded down 2.3% following the results while Sterling was up 8.9%.
Read our full analysis of EMCOR’s results here and Sterling’s results here.
There has been positive sentiment among investors in the engineering and design services segment, with share prices up 4.8% on average over the last month. Dycom is up 6.5% during the same time and is heading into earnings with an average analyst price target of $278 (compared to the current share price of $273.50).
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