What: Dycom Industries Inc. (NYSE:DY) 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.
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.