Dycom (DY) Gears Up to Report Q2 Earnings: What's in Store?

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].