Why Is Dycom Industries (DY) Down 5.9% Since Last Earnings Report?

Core Viewpoint - Dycom Industries has reported strong first-quarter fiscal 2025 results, with both revenues and earnings exceeding expectations, but the stock has underperformed the S&P 500 recently [7][8]. Financial Performance - Contract revenues reached $1.14 billion, surpassing the consensus estimate of $1.09 billion by 4.8% and showing a year-over-year growth of 9.3% [3]. - Adjusted earnings per share (EPS) were $2.12, beating the Zacks Consensus Estimate of $1.39 by 52.5% and increasing 22.5% from $1.73 year over year [9]. - Adjusted EBITDA rose 15.3% to $130.9 million, with an adjusted EBITDA margin of 11.5%, expanding 60 basis points from the previous year [11]. Customer Contributions - The largest customer, AT&T, accounted for 21.5% of total revenues, followed by Lumen at 13%, Comcast at 11.5%, Verizon at 9.6%, and Charter at 2.1% [10]. - Charter experienced significant organic growth, increasing by 121.8% year over year [10]. Backlog and Future Outlook - The backlog at the end of the fiscal first quarter was $6.364 billion, down from $6.917 billion at the end of fiscal 2024, with $3.863 billion expected to be completed in the next 12 months [5]. - For the fiscal second quarter, Dycom anticipates contract revenues to grow by high-single digits year over year, including $70 million from acquired contract revenues [13]. Shareholder Actions - 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 fiscal first quarter [19]. Market Sentiment and Estimates - The consensus estimate for Dycom has shifted upward by 13.56%, with an average Growth Score of C and a Momentum Score of A [14][21]. - The stock holds a Zacks Rank of 3 (Hold), indicating an expectation of in-line returns in the coming months [22].