Overview
Telecom contractor's fiscal Q4 contract revenues rose 34.4%, driven by organic growth
Adjusted net income for fiscal Q4 rose 42% yr/yr, exceeding expectations
Company completed acquisition of Power Solutions, expanding into data center market
Outlook
Dycom expects fiscal 2027 revenue between $6.85 bln and $7.15 bln
Company anticipates fiscal 2027 adjusted EBITDA margin expansion
Dycom forecasts Q1 fiscal 2027 revenue between $1.64 bln and $1.71 bln
Result Drivers
ORGANIC GROWTH - Dycom's Q4 revenue growth was driven by a 16.6% increase in organic contract revenues, attributed to strong demand for fiber infrastructure and maintenance services
ACQUISITION IMPACT - The acquisition of Power Solutions contributed to Dycom's entry into the data center market, impacting Q4 results
OPERATIONAL EXCELLENCE - Record free cash flow in Q4 was attributed to operational excellence, according to CEO Dan Peyovich
Company press release: ID:nGNX19nJ5w
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q4 Contract Revenue | $1.46 bln | ||
Q4 EPS | $0.55 | ||
Q4 Net Income | $16.30 mln | ||
Q4 Adjusted EBITDA | $162.40 mln | ||
Q4 Pretax Profit | $17.90 mln |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 12 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"
The average consensus recommendation for the construction & engineering peer group is "buy"
Wall Street's median 12-month price target for Dycom Industries Inc is $420.00, about 4.1% above its March 3 closing price of $403.49
The stock recently traded at 31 times the next 12-month earnings vs. a P/E of 29 three months ago
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)