Financial Data and Key Metrics Changes - Revenue for the second quarter increased to $1.203 billion, a rise of 15.5% year-over-year, with organic revenue growth of 9.2% [8][19] - Gross margin improved to 20.8%, up 52 basis points compared to the same quarter last year [8][19] - Adjusted EBITDA was $158.3 million, representing 13.2% of revenue, compared to 12.6% in Q2 of the previous year [19] - Adjusted earnings per share increased to $2.46 from $2.03 year-over-year [19] Business Line Data and Key Metrics Changes - Revenue from the top five customers accounted for 54.9% of total revenue, with AT&T being the largest customer at 17.5% of revenue, growing organically by 20.6% [15][19] - Revenue from electric utilities for fiber construction was $88.7 million in the quarter [16] Market Data and Key Metrics Changes - Backlog at the end of the second quarter was $6.834 billion, an increase of $470 million from the previous quarter [17] - The company expects the acquisition of Black & Veatch's wireless telecommunications infrastructure business to contribute $250 million to $275 million in revenue for fiscal year 2026 [10][21] Company Strategy and Development Direction - The company aims to connect America and is well-positioned for growth in the industry, particularly in wireless network modernization and fiber deployments [6][12] - The acquisition of Black & Veatch is seen as a strategic move to enhance geographic presence and address growth opportunities in wireless network modernization [9][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the stability of macroeconomic conditions and the improvement in labor markets, which positions the company well for future growth [14] - The company anticipates modest revenue growth in the third and fourth quarters due to a focus on site acquisition for next year's construction program [10][22] Other Important Information - The company completed the acquisition of a telecommunications construction contractor for $20.8 million, expanding its geographic footprint to Alaska [21] - The Broadband, Equity, Access, Deployment (BEAD) program is expected to provide significant funding for rural communications networks, with over $40 billion allocated [13][14] Q&A Session Summary Question: How is Dycom positioned in the intercity opportunity? - Management indicated that Dycom has significant experience in intercity work, having placed over 2,000 miles of intercity fiber in the past [28] Question: What was the catalyst for the sequential increase in backlog? - Management noted that there were no BEAD opportunities in the backlog yet, but a broad set of opportunities contributed to the increase [29] Question: Is organic revenue growth expected to decelerate in Q3? - Management clarified that while organic growth may appear to decelerate, it is influenced by prior year comparisons and expected new revenues from acquisitions [32][33] Question: What is the growth rate embedded in the Black & Veatch acquisition? - Management stated that the $1 billion backlog from the acquisition extends through the end of calendar 2027, indicating a solid growth opportunity [43] Question: How does the company view the BEAD program? - Management expressed optimism about the BEAD program, anticipating significant activity in the next year as approvals are secured [55]

Core Insights - Dycom Industries reported quarterly earnings of $2.46 per share, exceeding the Zacks Consensus Estimate of $2.18 per share, and showing an increase from $2.03 per share a year ago, resulting in an earnings surprise of 12.84% [1] - The company achieved revenues of $1.2 billion for the quarter ended July 2024, surpassing the Zacks Consensus Estimate by 0.68% and increasing from $1.04 billion year-over-year [2] - Dycom Industries shares have appreciated approximately 68.7% year-to-date, significantly outperforming the S&P 500's gain of 17.3% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $2.43 on revenues of $1.23 billion, while the estimate for the current fiscal year is $8.02 on revenues of $4.64 billion [7] - The estimate revisions trend for Dycom Industries is favorable, contributing to a Zacks Rank 2 (Buy) for the stock, indicating expected outperformance in the near future [6] Industry Context - The Building Products - Heavy Construction industry, to which Dycom Industries belongs, is currently ranked in the top 4% of over 250 Zacks industries, suggesting a strong industry outlook [8]

PALM BEACH GARDENS, Fla., Aug. 21, 2024 (GLOBE NEWSWIRE) -- Dycom Industries, Inc. (NYSE: DY) today announced that the Company acquired Black & Veatch's public carrier wireless telecommunications infrastructure business. The acquired business provides wireless construction services primarily in the states of New York, New Jersey, Missouri, Kansas, Colorado, Utah, Wyoming, Idaho and Montana. The acquisition strategically strengthens Dycom's customer base and expands geographic scope to more broadly address g ...

Revenue Performance - Contract revenues for Q2 2025 reached $1.203 billion, a 15.5% increase from $1.042 billion in Q2 2024[1] - Year-to-date contract revenues increased 12.4% to $2.345 billion compared to $2.087 billion for the same period last year[3] - Contract revenues for the quarter ended July 27, 2024, were $1,203,059, representing a growth of 15.5% compared to $1,041,535 for the quarter ended July 29, 2023[18] - Non-GAAP Organic Contract Revenues for the quarter ended July 27, 2024, were $1,137,146, reflecting a growth of 9.2% from $1,041,535 in the same quarter of the previous year[18] - The company expects total contract revenues for Q3 2025 to increase mid- to high single digits compared to $1.136 billion in Q3 2024, including approximately $75 million from acquired revenues[5] Profitability Metrics - Non-GAAP Adjusted EBITDA for Q2 2025 was $158.3 million, or 13.2% of contract revenues, up from $130.8 million, or 12.6% in Q2 2024[2] - Year-to-date Non-GAAP Adjusted EBITDA increased to $289.2 million, or 12.3% of contract revenues, compared to $244.3 million, or 11.7% in the prior year[3] - Non-GAAP Adjusted EBITDA for the quarter ended July 27, 2024, was $158,335, compared to $130,790 for the quarter ended July 29, 2023, representing an increase of 20.9%[19] - Non-GAAP Adjusted EBITDA as a percentage of contract revenues for the quarter ended July 27, 2024, was 13.2%, compared to 12.6% for the quarter ended July 29, 2023[19] - Non-GAAP Adjusted EBITDA as a percentage of contract revenues for Q3 2025 is expected to increase by approximately 25 to 50 basis points compared to 12.9% in Q3 2024[5] Net Income - Non-GAAP Adjusted Net Income for Q2 2025 was $72.5 million, or $2.46 per diluted share, compared to $60.2 million, or $2.03 per diluted share in Q2 2024[2] - GAAP net income for the six months ended July 27, 2024, was $131.0 million, or $4.44 per diluted share, compared to $111.8 million, or $3.76 per diluted share in the prior year[3] - Net income for the quarter ended July 27, 2024, was $68,400, an increase from $60,246 for the quarter ended July 29, 2023[19] - Non-GAAP Adjusted Net Income for the six months ended July 27, 2024, was $135,049, compared to $111,769 for the same period in the previous year[21] Stock and Debt Management - The company repurchased 210,000 shares of its common stock for $29.8 million at an average price of $141.84 per share[4] - The company amended its credit agreement to expand term loan capacity and extend maturity to January 2029[2] - The company recognized a loss on debt extinguishment of approximately $1.0 million during the quarter ended July 27, 2024, related to the amendment of its credit agreement[28] - Stock-based compensation expense for the quarter ended July 27, 2024, was $9.5 million, compared to $6.3 million for the quarter ended July 29, 2023[28] - The company expects to incur approximately $11.4 million of stock-based compensation modification expense through the current CEO's retirement date of November 30, 2024[28]

Core Points - Dycom Industries, Inc. reported a 15.5% increase in contract revenues to $1.203 billion for the second quarter ended July 27, 2024, compared to $1.042 billion in the same quarter last year [1][4] - Non-GAAP Adjusted EBITDA rose to $158.3 million, representing 13.2% of contract revenues, up from $130.8 million or 12.6% in the prior year [2][20] - Non-GAAP Adjusted Net Income for the quarter was $72.5 million, or $2.46 per diluted share, compared to $60.2 million, or $2.03 per diluted share, in the same quarter last year [3][22] Quarterly Highlights - Contract revenues for the quarter increased to $1.203 billion, a 15.5% growth from $1.042 billion in the previous year [1] - Organic contract revenues increased by 9.2% after excluding $65.9 million from acquired businesses [1][18] - Non-GAAP Adjusted EBITDA for the quarter was $158.3 million, up from $130.8 million in the prior year [2][20] - GAAP net income for the quarter was $68.4 million, or $2.32 per diluted share, compared to $60.2 million, or $2.03 per diluted share, in the same quarter last year [3][21] Year-to-Date Highlights - For the six months ended July 27, 2024, contract revenues increased by 12.4% to $2.345 billion from $2.087 billion in the same period last year [4] - Non-GAAP Adjusted EBITDA for the six months was $289.2 million, or 12.3% of contract revenues, compared to $244.3 million, or 11.7% in the prior year [5][20] - GAAP net income for the six months was $131.0 million, or $4.44 per diluted share, compared to $111.8 million, or $3.76 per diluted share, in the same period last year [6][21] Share Repurchase - The company repurchased 210,000 shares of its common stock for $29.8 million at an average price of $141.84 per share during the six months ended July 27, 2024 [7] Outlook - For the quarter ending October 26, 2024, the company expects total contract revenues to increase in the mid- to high single digits compared to $1.136 billion for the quarter ended October 28, 2023 [8] - Non-GAAP Adjusted EBITDA as a percentage of contract revenues is expected to increase by approximately 25 to 50 basis points compared to 12.9% for the quarter ended October 28, 2023 [9]

Core Viewpoint - Dycom Industries, Inc. is expected to report strong earnings and revenue growth for the second quarter of fiscal 2025, driven by acquisitions and increased demand in the telecommunications sector [1][2][3]. Earnings & Revenue Expectations - The Zacks Consensus Estimate for Dycom's fiscal second-quarter earnings per share (EPS) has increased to $2.18, reflecting a 7.4% year-over-year rise [2]. - The consensus estimate for revenues is projected at $1.19 billion, indicating a 14.7% year-over-year increase [2]. Factors Influencing Performance - The anticipated revenue and EPS growth is attributed to the Bigham acquisition, increased demand for network bandwidth and mobile broadband, and improved trends among Dycom's top customers [3]. - Contract revenues are expected to grow by high-single digits year-over-year, with $70 million of acquired contract revenues anticipated for the quarter [4]. Segment Performance - Projected revenues in the Telecommunications segment (excluding Bigham acquisition) are estimated at $994 million, a 7.2% increase from the prior quarter [5]. - Revenues for the Underground Facility unit are expected to reach $84.1 million, up 9.6% from the previous quarter [5]. - The consensus for Electrical and gas utilities and other business revenues is pegged at $41.4 million, indicating a 9.9% year-over-year increase [5]. Margin and Backlog Expectations - The adjusted EBITDA margin is projected to be 13%, an increase from 12.6% reported a year ago [6]. - A backlog of $6.54 billion is expected, up from $6.21 billion in the prior quarter [6]. Earnings Prediction Model - The current model does not predict a definitive earnings beat for Dycom, as the Earnings ESP stands at 0.00% [7].

Core Viewpoint - Dycom Industries (DY) is anticipated to report a year-over-year increase in earnings driven by higher revenues, with the actual results having a significant impact on its near-term stock price [1][2]. Earnings Expectations - The upcoming earnings report is expected to be released on August 21, with a consensus EPS estimate of $2.18, reflecting a year-over-year increase of 7.4%. Revenues are projected to reach $1.19 billion, marking a 14.7% increase from the previous year [3][2]. Estimate Revisions - Over the last 30 days, the consensus EPS estimate has been revised 2.49% higher, indicating a positive reassessment by analysts regarding the company's earnings prospects [4]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates a positive Earnings ESP of +4.43% for Dycom Industries, suggesting a likelihood of beating the consensus EPS estimate. The company currently holds a Zacks Rank of 2, further supporting this outlook [10]. Historical Performance - In the last reported quarter, Dycom Industries exceeded the expected earnings of $1.39 per share by delivering $2.12, resulting in a surprise of +52.52%. Over the past four quarters, the company has beaten consensus EPS estimates three times [11][12]. Conclusion - Dycom Industries is positioned as a strong candidate for an earnings beat, although investors are advised to consider additional factors beyond earnings expectations when making investment decisions [15].

Core Insights - Dycom Industries, Inc. will host a conference call to discuss its fiscal 2025 second quarter results on August 21, 2024, at 9:00 a.m. ET [1] - A press release detailing the results will be issued earlier that morning [1] Participation Details - Interested parties can register for the question and answer session of the conference call at a provided link, receiving a dial-in number and unique PIN upon registration [2] - Participants are encouraged to join approximately ten minutes before the scheduled start time [2] Webcast Information - A live listen-only audio webcast of the call, along with a slide presentation, will be available at a specified link [3] - A replay of the live webcast and related materials will be accessible on the Company's Investor Center website for approximately 120 days following the event [3] Company Overview - Dycom Industries, Inc. is a leading provider of specialty contracting services in the United States, offering services such as program management, planning, engineering and design, and various construction and maintenance services for telecommunications and utility providers [4]

Below, we take a look at Dycom Industries (DY) , which currently has a Momentum Style Score of A. We also discuss some of the main drivers of the Momentum Style Score, like price change and earnings estimate revisions. Set to Beat the Market? For DY, shares are up 5.64% over the past week while the Zacks Building Products - Heavy Construction industry is up 4.33% over the same time period. Shares are looking quite well from a longer time frame too, as the monthly price change of 8.14% compares favorably wit ...

Group 1: Mid-Cap Stock Opportunities - Identifying the best mid-cap stocks for 2024 is challenging due to potential volatility despite growing revenues and profits [1] - By 2028, several emerging companies are expected to experience significant gains driven by favorable economic and industry trends [2] - A balanced investment approach with effective risk management can enhance portfolio success over the coming years [2] Group 2: Qualys (QLYS) - Qualys is a leading provider of cloud-based security solutions, well-positioned for growth in the cybersecurity sector as global cyber threats rise [3] - The company has a market capitalization of approximately $5 billion and reported a 12% year-over-year revenue increase to $145.8 million in Q1 FY24 [4] - Earnings per share grew 35% year-over-year to $1.05, supported by strong operational execution and a comprehensive suite of offerings [4] Group 3: Dycom Industries (DY) - Dycom Industries provides specialty contract services to the telecommunications industry and is well-positioned to benefit from the demand for high-speed data connectivity and 5G technology [5][6] - The company reported a 9% year-over-year revenue increase to $1.14 billion, with net earnings rising 21% to $62.6 million, or $2.12 per share [7] - Strong demand for high-capacity fiber optic networks is driving robust contracted revenue growth, positioning DY stock for potential gains of 50% or more by 2028 [7] Group 4: Invesco S&P MidCap Momentum ETF (XMMO) - The Invesco S&P MidCap Momentum ETF offers diversified exposure to top mid-cap stocks and has outperformed the S&P 500, rising 29% compared to the S&P 500's 15% increase [8][9] - The ETF focuses on companies with strong price momentum, indicating solid business fundamentals and growth potential [9] - Notable companies within the ETF include Lennox International, Emcor Group, and Elf Beauty, with a relatively low expense ratio of 0.34% [9]