Dycom Industries (NYSE:DY) Posts Earnings Results, Beats Expectations By $0.57 EPS

Dycom Industries (NYSE:DY) released its earnings results on Wednesday. The construction company reported $5.29 EPS for the quarter, topping analysts’ consensus estimates of $4.72 by $0.57, FiscalAI reports. Dycom Industries had a return on equity of 24.13% and a net margin of 4.98%.The firm had revenue of $1.61 billion for the quarter, compared to analysts’ expectations of $1.98 billion. During the same period in the prior year, the firm posted $3.33 earnings per share. The company’s quarterly revenue was up 45.6% on a year-over-year basis. Dycom Industries updated its Q3 2027 guidance to 4.330-4.790 EPS.

Here are the key takeaways from Dycom Industries’ conference call:

• Record Q2 results included $2.01 billion of revenue, up 45.6% year over year, 15.7% adjusted EBITDA margins, and adjusted EPS of $5.29; both EBITDA and EPS exceeded the high end of guidance.
• Demand remains strong across fiber-to-the-home, long-haul and middle-mile fiber, data-center interconnect, and data-center electrical systems. Backlog reached a record $12.2 billion, with more than $1 billion contracted for long-haul, middle-mile, and inside-the-fence fiber work.
• Dycom raised its fiscal 2027 revenue outlook to $7.48 billion-$7.66 billion, reflecting continued organic growth and the acquisition of National Technology Integrators, whose initial performance and cross-selling opportunities exceeded expectations.
• Approximately $150 million of wireless revenue is shifting from the second half of fiscal 2027 into fiscal 2028. Communications margins are expected to decline slightly year over year because of the deferral, workforce investments, ramp-up costs, and higher fuel prices.
• Building Systems delivered an exceptional 24.5% adjusted EBITDA margin, while cash flow improved materially, DSOs fell to 101 days, and the board authorized a new $150 million share-repurchase program.

Dycom Industries Stock Down 11.3%

Shares of NYSE:DY opened at $311.94 on Thursday. The company has a fifty day simple moving average of $424.20 and a 200 day simple moving average of $415.22. The firm has a market cap of $9.37 billion, a PE ratio of 29.68, a price-to-earnings-growth ratio of 0.62 and a beta of 1.54. Dycom Industries has a 12-month low of $242.55 and a 12-month high of $566.47. The company has a current ratio of 2.58, a quick ratio of 2.46 and a debt-to-equity ratio of 1.48.

Trending Headlines about Dycom Industries

Here are the key news stories impacting Dycom Industries this week:

• Positive Sentiment: Dycom reported record fiscal Q2 results: contract revenue rose 45.6% year over year to $2.006 billion, adjusted EPS reached $5.29 versus a roughly $4.62–$4.72 consensus, and adjusted EBITDA was $315.5 million versus expectations near $297 million. Dycom fiscal 2027 second-quarter results
• Positive Sentiment: Total backlog increased 53.2% to a record $12.242 billion, improving revenue visibility. Management cited accelerating fiber, broadband, data-center and other digital-infrastructure demand, with analysts linking the growth opportunity to expanding AI infrastructure investment. Why Dycom’s earnings beat points to an AI infrastructure boom
• Positive Sentiment: The board authorized a new $150 million share-repurchase program, allowing Dycom to buy back up to approximately 1.4% of outstanding shares. The authorization may signal management’s view that the stock is undervalued and could provide support for earnings per share. Dycom $150 million stock repurchase program
• Positive Sentiment: Dycom completed its acquisition of National Technology Integrators, adding to its digital-infrastructure capabilities and potentially strengthening exposure to data-center and communications projects.
• Neutral Sentiment: Fiscal 2027 revenue guidance was raised or established at approximately $7.48 billion to $7.66 billion, broadly around the $7.6 billion analyst consensus, suggesting strong growth but limited upside relative to elevated expectations.
• Negative Sentiment: Third-quarter adjusted EPS guidance of $4.33 to $4.79 has a midpoint of $4.56, below the $4.68 consensus estimate. Investors viewed the cautious outlook as more important than the Q2 beat. Why Dycom Industries stock is sinking
• Negative Sentiment: Approximately $150 million of wireless work was deferred from fiscal 2027 into fiscal 2028, raising concerns about the timing of project execution and near-term revenue and earnings growth. Dycom wireless work deferred into fiscal 2028

Dycom Industries announced that its Board of Directors has authorized a share repurchase plan on Wednesday, August 26th that allows the company to buyback $150.00 million in shares. This buyback authorization allows the construction company to reacquire up to 1.4% of its stock through open market purchases. Stock buyback plans are often an indication that the company’s leadership believes its shares are undervalued.

Institutional Trading of Dycom Industries

A number of institutional investors and hedge funds have recently modified their holdings of the business. Kemnay Advisory Services Inc. bought a new position in Dycom Industries in the 4th quarter worth approximately $30,000. Acumen Wealth Advisors LLC acquired a new position in shares of Dycom Industries in the 4th quarter valued at $35,000. IFP Advisors Inc raised its holdings in shares of Dycom Industries by 400.0% during the third quarter. IFP Advisors Inc now owns 140 shares of the construction company’s stock valued at $41,000 after acquiring an additional 112 shares during the period. EverSource Wealth Advisors LLC grew its position in Dycom Industries by 73.1% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 161 shares of the construction company’s stock worth $39,000 after purchasing an additional 68 shares in the last quarter. Finally, Employees Retirement System of Texas purchased a new position in Dycom Industries during the 3rd quarter worth approximately $75,000. 98.33% of the stock is owned by institutional investors and hedge funds.

Analysts Set New Price Targets

DY has been the topic of several research reports. UBS Group restated a “buy” rating on shares of Dycom Industries in a report on Friday, July 24th. KeyCorp raised their target price on shares of Dycom Industries from $482.00 to $610.00 and gave the company an “overweight” rating in a research note on Monday, June 1st. Zacks Research downgraded shares of Dycom Industries from a “strong-buy” rating to a “hold” rating in a report on Monday, July 27th. Wells Fargo & Company raised their target price on Dycom Industries from $500.00 to $650.00 and gave the stock an “overweight” rating in a research note on Thursday, May 28th. Finally, Weiss Ratings raised shares of Dycom Industries from a “buy (b-)” rating to a “buy (b)” rating in a research report on Thursday, August 13th. Eleven research analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the company’s stock. According to data from MarketBeat, the stock has an average rating of “Moderate Buy” and a consensus price target of $578.09.

About Dycom Industries

Dycom Industries, Inc (NYSE: DY) is a leading provider of specialty contracting services to the telecommunications industry in North America. The company delivers engineering, construction, installation and maintenance solutions for communications infrastructure, supporting a broad range of network technologies and system architectures. Dycom’s services span outside plant construction, cable placement, fiber optic deployment, wireless and wireline network engineering, as well as testing and turn-up services for voice, data and video applications.

Dycom’s customer base includes major telecommunications carriers, cable operators, utility companies and competitive local exchange carriers.