Leading specialty contracting services provider,
Dycom Industries Inc.
) reported second-quarter (ended Jan 26) fiscal 2014 net loss of
$3.1 million or 9 cents per share, in line with the Zacks
Consensus Estimate. In the prior-year quarter, the company had
reported a net income of $5.2 million or 15 cents per share.
Following the earnings release, the stock price gained 4.3% on
Feb 26 to close at $27.44.
Dycom's performance has been impacted by severe weather
conditions in the latter half of second-quarter 2014. Moreover,
heavy snowfall and the exceptionally cold temperature resulted in
lower number of available workdays, which weighed on both
productivity and margins.
Dycom's contract revenues increased 5.7% year over year to
$390.5 million while there was a growth of 0.9% organically.
However, revenues fell short of the Zacks Consensus Estimate of
Despite the headwinds, Dycom's revenues benefited mainly from
its strong portfolio of customers, primarily in the telecom and
wireless equipment industry. In the quarter, approximately 59.5%
of the company's revenues came from its top five clients.
Income and Expenses
The company reported adjusted earnings before interest, taxes,
depreciation and amortization (EBITDA) of $28.2 million, down
from with $37.2 million in the prior-year quarter.
The company's general and administration expenses were $38.6
million versus $38.8 million in the prior-year quarter.
Balance Sheet and Cash Flow
Cash and cash equivalents decreased to $16.3 million at the
quarter-end from $18.6 million at the end of Jul 27, 2013.
However, the figure marked an increase from $14.4 million in the
last quarter. The company reported total equity of $451.6
million, compared with $428.4 million at the end of the Jul 27,
2013. The company's long-term debt increased to $416.3 million
from the previous year's figure of $444.2 million.
Along with the earnings release, management provided guidance
for the third quarter of fiscal 2014. Revenues for third-quarter
fiscal 2014 are expected to be in the $415.0-$435.0 million range
and earnings per share are projected at 19-26 cents.
Dycom currently carries a Zacks Rank #3 (Hold).
Performance of Other Stocks in the Same Sector
Chicago Bridge & Iron Co. N.V.
) posted fourth-quarter adjusted earnings of $230.0 million or
$1.91 per share, which easily beat the Zacks Consensus Estimate
of $1.17 per share.
Quanta Services Inc.
) reported fourth-quarter 2013 non-GAAP earnings of 50 cents per
share, beating the Zacks Consensus Estimate by 22%.
) fourth-quarter 2013 net earnings of $167 million or $1.01 per
share surpassed the Zacks Consensus Estimate of 98 cents by
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