What happened

Three months ago, shares of telecommunications infrastructure builder Dycom Industries (NYSE:DY) took a dive after the company's quarterly report disappointed investors. Three months later, Dycom stock is self-destructing before earnings have even come out.

Dycom had previously guided investors to expect it would earn between $1.02 and $1.17 per share on sales of $830 million to $860 million in Q2. This morning, management released an earnings warning confirming that profits will probably range from $1.05 to $1.08 per share on sales of just under $800 million.

These results will obviously miss expectations, and investors are responding by bidding Dycom shares down 22% as of 11:10 a.m. EDT.

Hand holding a computer wire and plug

Investors are pulling the plug on Dycom stock today. Image source: Getty Images.

So what

Taken at their midpoints, Dycom's new projections imply sales will come in about 5% weaker than previously predicted, and profits will be about 3% below expectations in Q2.

And that's the good news.

Now what

The bad news is that Dycom also updated its guidance for the year as a whole. Management had previously guided investors to expect it would earn between $3.81 and $4.70 per share for fiscal 2018, on sales of $3.23 billion to $3.43 billion. Now, management says profits of $2.17 to $2.62 per share on sales of $3.01 billion to $3.11 billion are more likely.

Thus, full-year results are likely to yield 44% less profit than previously expected, on sales about 8% below expectations. It's no surprise investors are heading for the exits today.

Rich Smith has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.