Shares of Dycom Industries (NYSE:DY), which offers specialty contracting services primarily for telecom service providers, were soaring over 23% early Tuesday morning after the company's first-quarter results blew past analysts' estimates.
Revenue declined 2.3% compared with the prior year to $814.3 million, easily topping analysts' estimates of $746.6 million. But the driving force behind the stock price jump was adjusted earnings per share of $0.36, smashing analyst estimates calling for a $0.04 adjusted per-share loss.
In a press release, the company said: "During the COVID-19 pandemic, Dycom's services have generally been considered essential in nature and have not been materially interrupted. As the situation continues to evolve, the Company is closely monitoring the impact of the COVID-19 pandemic on all aspects of its business, including how it impacts the Company's customers, subcontractors, suppliers, vendors and employees, in addition to how the COVID-19 pandemic impacts the Company's ability to provide services to its customers."
Dycom also had a few interesting notes about pandemic near-term and long-term effects. Investments by major companies to upgrade wire-line networks have set the stage for large increases in peak demands on telecommunication networks, and those programs and upgrades are likely to accelerate in the intermediate to long term. In the near term, uncertainty could hurt some customer plans, but overall, management believes COVID-19 will simply reinforce and/or accelerate pre-pandemic industry trends.