Dycom Industries Beats on Both Top and Bottom Lines

Dycom Industries (NYSE: DY  ) reported earnings on May 21. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended April 27 (Q3), Dycom Industries beat expectations on revenues and beat expectations on earnings per share.

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

Margins dropped across the board.

Revenue details
Dycom Industries logged revenue of $437.4 million. The seven analysts polled by S&P Capital IQ foresaw revenue of $410.2 million on the same basis. GAAP reported sales were 48% higher than the prior-year quarter's $296.1 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 $0.21. The seven earnings estimates compiled by S&P Capital IQ predicted $0.17 per share. GAAP EPS of $0.21 for Q3 were 25% lower than the prior-year quarter's $0.28 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 18.2%, 30 basis points worse than the prior-year quarter. Operating margin was 3.9%, 20 basis points worse than the prior-year quarter. Net margin was 1.6%, 170 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
Next quarter's average estimate for revenue is $441.0 million. On the bottom line, the average EPS estimate is $0.38.

Next year's average estimate for revenue is $1.54 billion. The average EPS estimate is $1.06.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 113 members out of 118 rating the stock outperform, and five 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 $25.33.

If you're interested in companies like Dycom Industries, you might want to check out the jaw-dropping technology that's about to put 100 million Chinese factory workers out on the street – and the 3 companies that control it. We'll tell you all about them in "The Future is Made in America." Click here for instant access to this free report.

Add Dycom Industries to My Watchlist.