Please ensure Javascript is enabled for purposes of website accessibility

Shares of Dycom Industries Pop After Strong Fiscal 2016 Third Quarter

By Daniel Miller – May 25, 2016 at 11:43AM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Dycom posted strong third-quarter revenue and earnings results, and industry momentum bodes well for its future.

What: Dycom Industries Inc. (DY 3.22%) provides telecommunications companies specialty contracting services -- including engineering, construction, maintenance and installation -- in the U.S. and Canada. Shares of the company are jumping 10% higher today after the company released its fiscal 2016 third-quarter results.

So what: Looking at the top and bottom lines, investors were clearly happy with both results. The company's revenue checked in at $664.6 million during the fiscal 2016 third quarter compared to analysts' estimates of about $598 million. That solid top-line growth filtered down to the bottom line, too.

After missing estimates last quarter, Dycom rebounded by posting adjusted earnings per share of $1.08 during the fiscal 2016 third quarter. That beat consensus estimates from Zacks Investment Research by a whopping 44%.

Now what: Despite a slight slowdown during the preceding quarter, industry tailwinds should help keep the company's momentum going.


Image source: Dycom Industries' fiscal third-quarter presentation.

Dycom's telecommunications companies continue to develop more extensive 1-gigabye wire networks for major customers, which should help open up growth opportunities, and it's a good sign for investors that the company's backlog keeps moving higher. Dycom's guidance for fourth-quarter adjusted earnings per share are between $1.45 and $1.60 on revenue between $750 and $780 million. For comparison, that would be a large improvement on the prior year's fiscal fourth-quarter adjusted earnings per share of $0.97 on revenue of $578.5 million.

Daniel Miller has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Dycom Industries, Inc. Stock Quote
Dycom Industries, Inc.
DY
$103.79 (3.22%) $3.24

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
331%
 
S&P 500 Returns
106%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 10/05/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.