NEW YORK (TheStreet) -- Shares of Dycom Industries (DY) - Get Report were falling 7.41% to $85.16 on heavy trading volume Wednesday afternoon after the company posted solid results for the 2016 fiscal fourth quarter, but gave a downbeat outlook for Goodman Networks revenue.
After yesterday's closing bell, the provider of specialty contracting services said revenue from its recently acquired operations of Goodman is projected to be lower-than-anticipated in fiscal 2017.
Dycom forecasts that the operations will produce revenue of about $100 million during the full year. But the company sees Goodman operations achieving higher EBITDA margins sooner than initially expected.
In June, the company agreed to buy certain assets from Goodman's wireless network deployment and wireline business.
For the fourth quarter, Dycom reported adjusted earnings of $1.64 per share, above analysts' estimates of $1.55 per share. Revenue was $789.2 million, while analysts were looking for $770.7 million.
First-quarter earnings per share are expected to be between $1.55 and $1.70 on revenue of $780 million to $810 million. Analysts are modeling earnings of $1.63 per share on revenue of $775 million for the current period.
About 2.36 million of the company's shares traded so far today compared to its average 30-day volume of 872,240 shares per day.
Separately, TheStreet Ratings Team has a "Buy" rating with a score of B on the stock.
The company's strengths can be seen in multiple areas, such as its robust revenue growth, notable return on equity, solid stock price performance, impressive record of earnings per share growth and compelling growth in net income.
The team believes its strengths outweigh the fact that the company has had generally high debt management risk by most measures that were evaluated.
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
You can view the full analysis from the report here: DY