revised its third-quarter financial guidance up slightly, but the company said it had been notified by a major customer to suspend work on all of that customer's pending projects.
The company, which provides engineering, construction, and maintenance services to telecom providers, said it now expects to see earnings per share in the range of 14 cents to 16 cents for the third quarter ended April 27, 2002, up from earlier guidance of 10 cents to 15 cents a share.
The new guidance doesn't include a 2-cent gain for settlement of a federal employment tax issue relating to prior years, and on that basis, the outlook is ahead of estimates provided by Thomson Financial/First Call. Analysts polled by the company are looking for Dycom to earn 13 cents a share in the quarter.
Dycom also cautioned that a major cable customer that accounted for about 18% of the company's third-quarter revenue has notified Dycom to suspend all projects. Dycom expects the suspension to impact its fourth-quarter results, and the company said it may impact results through 2003.
Dycom said it will announce fourth-quarter guidance in its earnings release, scheduled for June 3, 2002. First Call analysts are currently expecting Dycom to earn 17 cents a share in the fourth quarter.
Shares of Dycom closed at $14 Monday before the news.