Dycom Profit Rises, Yet Misses Estimates - Update

(RTTNews) - Contracting service provider Dycom Industries Inc. (DY), Tuesday reported an increase in second-quarter profit on higher revenues, largely offset by expenses. Dycom's earnings for the quarter missed Wall Street estimates, but revenue topped expectations.

Dycom offers engineering, maintenance and installation services to telecommunications providers, and underground facility locating services to utilities.

The Palm Beach Gardens, Florida-based company reported second quarter net income of $14.7 million or $0.43 per share, compared with $13 million or $0.39 per share last year.

Excluding items, adjusted earnings for the quarter were $15 million or $0.44 per share.

On average, six analysts polled by Thomson Reuters expected earnings of $0.45 per share for the quarter. Analysts' estimates typically exclude special items.

Revenue for the quarter surged to $478.6 million from $318 million a year ago, aided mostly by past acquisitions. Analysts expected revenue of $465.72 million for the quarter.

On an organic basis, revenue was up 7.5 percent.

For the first quarter, Dycom expect earnings of $0.42 to $0.49 per share and revenue of $475 million to $495 million. Analysts currently expect earnings of $0.47 per share on revenue of $471.48 million for the quarter.

Dycom said its board has authorized a $40 million share buyback, which is to be implemented over the next eighteen months. The authorization replaces the previous program which expires on September 15.

The company's stock closed Tuesday at $58.51, up $0.17 or 0.29%, on a volume of 2.4 million shares on the NYSE. In after hours, the stock gained $0.03 or 0.05%.