Dycom Industries Misses Where it Counts

Dycom Industries (NYSE: DY  ) reported earnings on Feb. 26. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Jan. 26 (Q2), Dycom Industries beat expectations on revenues and missed estimates on earnings per share.

Compared to the prior-year quarter, revenue grew significantly. GAAP earnings per share dropped significantly.

Gross margins grew, operating margins dropped, net margins contracted.

Revenue details
Dycom Industries reported revenue of $369.3 million. The seven analysts polled by S&P Capital IQ anticipated a top line of $331.8 million on the same basis. GAAP reported sales were 38% higher than the prior-year quarter's $267.4 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.04. The six earnings estimates compiled by S&P Capital IQ predicted $0.10 per share. GAAP EPS of $0.04 for Q2 were 60% lower than the prior-year quarter's $0.10 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 18.4%, 80 basis points better than the prior-year quarter. Operating margin was 2.2%, 60 basis points worse than the prior-year quarter. Net margin was 0.4%, 90 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $389.1 million. On the bottom line, the average EPS estimate is $0.25.

Next year's average estimate for revenue is $1.47 billion. The average EPS estimate is $1.12.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 117 members out of 123 rating the stock outperform, and six members rating it underperform. Among 40 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 39 give Dycom Industries a green thumbs-up, and one give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Dycom Industries is outperform, with an average price target of $22.25.

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