Dycom Beats Q2 but Soft Guidance Triggers Price Target Cuts

Dycom Industries Inc. reported upbeat fiscal second-quarter results Wednesday, but its third-quarter adjusted EPS guidance midpoint came in below Wall Street expectations.

Dycom posted adjusted EPS of $5.29, beating the expected $4.72. Contract revenues rose 45.6% year-over-year to $2.01 billion, surpassing the $1.98 billion estimate. Organic revenue grew 16.7%.

The company raised its fiscal 2027 revenue guidance to $7.38 billion–$7.65 billion, up from the prior range, versus the $7.62 billion consensus.

For the third quarter, Dycom guided adjusted EPS in the range of $4.33–$4.79, with the $4.56 midpoint below the $4.79 consensus. It forecast quarterly revenue of $1.90 billion–$1.98 billion, versus the $1.94 billion estimate.

"Dycom delivered record first-half organic revenue, improved profitability, and continued above-market growth," said Dan Peyovich, President and CEO. "Demand across our segments remains stronger than ever, driven by generational investment in digital infrastructure expected to continue through the next decade. We secured significant new contracts, lifting backlog to record levels. We also formally welcomed National Technology Integrators to the Dycom family, further enhancing our leadership in digital and critical infrastructure and diversifying our business."

Dycom Industries shares fell 0.8% to $308.34 on Thursday.

Following the earnings release, several analysts adjusted their price targets on Dycom.

Cantor Fitzgerald analyst Manish A. Somaiya maintained an Overweight rating and cut the price target from $654 to $476.

Keybanc analyst Sangita Jain maintained an Overweight rating and lowered the price target from $610 to $423.

Wells Fargo analyst Eric Luebchow kept an Overweight rating and reduced the price target from $650 to $550.

UBS analyst Steven Fisher maintained a Buy rating and trimmed the price target from $611 to $525.

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