In the fiscal fourth quarter, Dycom Industries experienced a slip in earnings as contract revenue decreased organically. Despite this decline, the telecommunications contractor managed to generate a profit of $23.4 million for the quarter ended Jan. 27, down from $24.8 million in the same period last year.
Earnings per Share Fall Short of Analyst Expectations
Earnings per share stood at 79 cents, falling below the 94 cents per share that analysts had anticipated, based on FactSet data.
Contract Revenue Misses Analyst Forecasts
While contract revenue increased to $952.5 million from $917.5 million the previous year, it fell short of analyst expectations, which projected revenue to reach $969 million according to FactSet. Excluding revenue from an acquired business not present in the year-ago quarter, the company’s top line experienced a 2.5% decrease.
Future Outlook for Dycom Industries
Looking ahead to the first quarter ending on April 29, the Palm Beach Gardens, Fla.-based company forecasts that organic contract revenue will either remain steady or decrease slightly as a percentage of total contract revenue. However, Dycom anticipates a return to growth in organic revenue starting from the subsequent quarter.
