Dycom Shares Surge 10% After Earnings Beat, Guidance Raise and $1.95 Billion Acquisition

Core Insights - Dycom's shares increased over 10% intra-day following the announcement of strong quarterly results, an increased revenue outlook, and a $1.95 billion acquisition of Power Solutions [1] Financial Performance - GAAP net income rose to $106.4 million, or $3.63 per diluted share, exceeding the average analyst estimate of $3.20 [2] - Contract revenue grew by 14.1% to $1.452 billion, with organic revenue increasing by 7.2% when excluding recent acquisitions [2] - Contributions from acquired businesses reached $110.9 million, significantly up from $21 million in the same period last year [2] - Adjusted EBITDA improved to $219.4 million, representing 15.1% of contract revenue, compared to $170.7 million, or 13.4%, a year earlier [2] Future Projections - For the fourth quarter ending January 31, 2026, Dycom projected adjusted EPS between $1.62 and $1.97, compared to the consensus estimate of $1.66 [3] - The company forecasts Q4 contract revenue to be between $1.26 billion and $1.34 billion, with adjusted EBITDA expected to be between $140 million and $155 million [3] - Dycom raised the midpoint of its fiscal 2026 outlook, now anticipating contract revenue between $5.350 billion and $5.425 billion, indicating a year-over-year growth of 13.8% to 15.4% [3]