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Dycom Industries, Inc. DY is scheduled to report first-quarter fiscal 2026 results on May 21, before the opening bell.
In the last reported quarter, the company’s earnings beat the Zacks Consensus Estimate by 28.6% and increased 48.1% from a year ago. Contract revenues increased 13.9% year over year and beat the consensus mark by 5.6%.
This specialty contracting services provider’s earnings surpassed estimates in each of the trailing four quarters, with an average of 27%.
Earnings & Revenue Expectations
The Zacks Consensus Estimate for Dycom’s fiscal first-quarter earnings per share (EPS) has remained stable at $1.60 in the past 30 days. The estimated figure indicates a 24.5% decrease on a year-over-year basis. (Find the latest earnings estimates and surprises on Zacks Earnings Calendar.)
Dycom Industries, Inc. Price and EPS Surprise
Dycom Industries, Inc. price-eps-surprise | Dycom Industries, Inc. Quote
The consensus estimate for revenues is pegged at $1.20 billion, indicating a 4.9% year-over-year rise.
Factors to Note Ahead of DY’s Q1 Results
Dycom’s revenues are expected to have increased in the to-be-reported quarter, driven by ongoing fiber-to-the-home deployments, long-haul fiber projects from hyperscalers and wireless equipment upgrades. The company is likely to have benefited from higher demand for network bandwidth, broader geographic presence and improved network planning services. Moreover, improving demand trends among DY’s top five customers and all other customers are likely to have contributed to the top-line performance.
For the fiscal first quarter, DY expects contract revenues to be between $1.16 billion and $1.20 billion. This represents a strong year-over-year increase from $1.14 billion reported in the year-ago quarter. The adjusted EBITDA is expected to be between $130.6 million and $140.6 million compared with $130.9 million reported in the year-ago quarter.
However, Dycom is expected to have faced seasonal softness in the fiscal first quarter, as winter weather likely affected the pace of project execution.
Our model predicts the fiscal first-quarter revenues in the Telecommunications segment to be $1 billion, indicating a rise of 5.1% from the prior-year quarter figure. Revenues of the Underground Facility unit are projected at $86.3 million, up 6.5% from the prior-year quarter level. Electrical, gas utilities and other business revenues are projected at $34.6 million, indicating a slight year-over-year increase.
For the fiscal first quarter, we expect a backlog of $7.28 billion, indicating a decrease from $6.36 billion reported in the prior-year quarter.
However, challenges such as labor shortages and increased costs are expected to have exerted pressure on Dycom's quarterly performance. Fluctuations in oil prices pose a significant obstacle for DY, as higher fuel prices directly impact business costs. Dycom anticipates diluted EPS in the range of $1.50-$1.73 for the fiscal first quarter compared with $2.12 in the prior-year quarter.
Our model projects an adjusted EBITDA margin of 11.1%, down from 11.5% reported a year ago.