PALM BEACH GARDENS, Fla. - Dycom (NYSE:DY) Industries, Inc. (NYSE:DY) reported a miss on both earnings and revenue for its fourth quarter ended January 27, 2024.
The specialty contracting services provider announced Q4 EPS of $0.79, which fell short of the analyst estimate of $0.94. Revenue for the quarter came in at $952.5 million, also below the consensus estimate of $966.82 million.
The company saw a modest increase in contract revenues, up 3.8% to $952.5 million from $917.5 million in the same quarter last year. However, when adjusting for $57.5 million of revenue from an acquired business not owned in the year-ago quarter, organic contract revenues actually decreased by 2.5%.
Despite the revenue miss, non-GAAP Adjusted EBITDA improved, reaching $93.7 million or 9.8% of contract revenues, compared to $83.1 million or 9.1% of contract revenues in the prior year's quarter.
Dycom's net income for the quarter was $23.4 million, or $0.79 per diluted common share, a decrease from $24.8 million, or $0.83 per diluted common share, in the same quarter last year. The company also repurchased 260,000 shares of its own common stock during the quarter at an average price of $112.93 per share.
Looking forward, Dycom provided guidance for the quarter ending April 27, 2024, expecting organic contract revenues to be in-line to slightly lower as a percentage compared to the quarter ended April 29, 2023. The company also anticipates approximately $60 million of acquired contract revenues for the upcoming quarter. Non-GAAP Adjusted EBITDA as a percentage of contract revenues is projected to increase by 25 to 75 basis points.
Following the earnings release, Dycom's stock experienced a downward movement of 2.15% premarket, indicating a negative market response to the earnings and revenue miss, though the stock was later up 1.09% at the time of writing.
The company's CEO stated, "Our fourth quarter reflects the dynamic market conditions we face, yet we remain focused on operational excellence and strategic growth."
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