Why Dycom Industries Stock Is Plummeting Today

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Dycom Industries (NYSE:DY) stock was plummeting on Monday as investors received a warning from the company regarding its upcoming earnings and revenue figures.

Dycom IndustriesThe company’s shares had its biggest one-day selloff in 10 years as the specialty contracting services company lowered its profit and sales outlook ranges. The decision came as the company has experienced delays in some of its large-scale deployments from customers.

Dycom Industries now sees its earnings, adjusted to exclude non-recurring items, for its second quarter of fiscal 2018 to be in the range of $1.05 to $1.08 per share. The figure is significantly lower than the company’s previous guidance that was in the range of $1.13 to $1.28 per share.

It is also below the Wall Street consensus estimate of $1.19 per share, according to data compiled by FactSet. Dycom Industries’ contract revenue forecast was also reduced to $799.5 million from the range of $830 million to $860 million.

For its fiscal 2018, the company also lowered its adjusted earnings guidance to $2.62 to $3.07 per share from $4.26 to $5.15 per share, while the FactSet guidance is at $2.70 per share. The revenue estimate is now down to be in the range of $3.01 billion to $3.11 billion from $3.23 billion to $3.43 billion.

Analysts see the company’s full-year revenue to be around $3.34 billion in the median outlook, per FactSet.

DY stock was down about 24.1% during regular trading hours Monday.


Article printed from InvestorPlace Media, https://investorplace.com/2018/08/dycom-industries-dy/.

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