Dycom Industries, Inc
) recently announced that it expects second-quarter 2014 revenues
and earnings to be lower compared to its guidance mentioned
earlier, based on a preliminary review of its second-quarter 2014
The company warned of lower sales and profit in the wake of a
harsher winter in the latter half of the second quarter of 2014.
Severe snowfall and exceptionally cold temperatures resulted in
lower number of available workdays which had an unfavorable
impact on productivity and margins as well.
Dycom now expects to report a loss in the range of 8 to 10
cents a share compared to earnings in the range of 3 cents a
share to 9 cents a share, mentioned earlier. Similarly, the
company now expects revenues at $390 million versus the earlier
guidance of $400 million to $420 million.
This is not all; the company mentioned that the bad weather
continued into its third quarter as well and hence the company
has trimmed its outlook for the same. The company now expects
total revenue for the third quarter of fiscal 2014 to be flat
year over. Earlier, Dycom expected revenues for the third quarter
to be in the mid-single-digit range.
The Zacks Consensus Estimate currently stands at 8 cents, per
the company's previous expectation. However, we expect downward
revisions in earnings estimates for the second and third quarter
following the preliminary review.
Coming to the financials, during the second quarter of fiscal
2014, Dycom repurchased 360,900 common shares worth $10.0
million, average price being $27.7 per share. This apart, the
company repaid $58.6 million of credit facility borrowings and
ended the quarter with cash and cash equivalents of approximately
With preliminary results on the table, we are waiting for the
release of second-quarter 2014 results on Feb 25, after market
Dycom currently carries a Zacks Rank #3 (Hold). However, other
better-ranked stocks that are worth considering at the moment are
Chicago Bridge & Iron
Orion Marine Group Inc.
), all of which carry a Zacks Rank #2 (Buy).
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ORION MARINE GP (ORN): Free Stock Analysis
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