By Adriano Marchese
Dycom Industries shares rose in premarket trading Wednesday after the company upgraded its full-year outlook on the back of strong demand and a better-than-expected first quarter.
Shares traded 10% higher ahead of the morning bell at $212.98.
The specialty contracting-services company, which serves the telecommunications-infrastructure sector, now expects contract revenue for fiscal 2026 to rise by 12.5% to 15.4%, or between $5.29 billion and $5.43 billion. Previously the company expected a 10% to 13% rise in revenue.
For the second quarter ending July 26, the company expects contract revenue in the range of $1.38 billion to $1.43 billion, with adjusted earnings before interest, taxes, depreciation and amortization seen at $185 million to $200 million.
Earnings per share are expected to come in at $2.74 to $3.05 a share for the second quarter, compared with $2.32 a share a year earlier. Analysts polled by FactSet are seeking a more modest rise to $2.78 a share, compared with the midpoint of the range.
In the first quarter ended April 26, the company recorded a 10% rise in contract revenue to $1.26 billion. This topped both prior company guidance--$1.16 billion to $1.2 billion--and analyst views of $1.19 billion.
Net income for the quarter edged lower to $61 million, or $2.09 per share, from $62.6 million, or $2.12 per share a year earlier.
Write to Adriano Marchese at adriano.marchese@wsj.com
(END) Dow Jones Newswires
May 21, 2025 08:24 ET (12:24 GMT)
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