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Dycom Falls as Revenue and Earnings Miss Estimates

Dycom fell after the provider of contracting services for telecom and infrastructure posted earnings and revenue that missed Wall Street estimates.

Shares of Dycom  (DY)  fell Tuesday after the provider of specialty contracting services to the telecommunications and infrastructure industries posted first-quarter earnings and revenue that missed Wall Street estimates.

Shares of the Palm Beach, Fla., company at last check fell 12% to $72.87. In 2021 through Monday's trading, Dycom stock was up 10%.

For the quarter ended May 1, Dycom swung to a profit of $898,000, or 3 cents a share, from a loss of $32.4 million, or $1.03 a share, in the year-earlier quarter. The latest figure came in below the FactSet consensus analyst estimate of 17 cents a share. 

For the latest quarter the adjusted loss was 4 cents a share. FactSet's survey was calling earnings of 6 cents.

Revenue registered $727.4 million, down 11% from $814.3 million a year earlier and below the FactSet estimate of $752.1 million.

Dycom provides engineering, construction, maintenance, and installation services to telecom providers and electric and gas utilities, as well as underground facility locating services.

"Macroeconomic effects and potential supply constraints may influence the near term execution of some customer plans," Dycom's senior management said in an earnings presentation.  

"Broad increases in demand for fiber-optic cable and related equipment may impact delivery lead times in the short to intermediate term."

For the second quarter, Dycom expects adjusted earnings before interest, taxes, depreciation and amortization as a percentage of contract revenue to decrease from the year-earlier quarter. 

Contract revenue should range from in line with to modestly lower than the year-earlier figures, it said.

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