Overview

• US telecom infrastructure contractor's fiscal Q1 revenue jumped 56% yr/yr, with 25% organic growth

• Adjusted EPS for fiscal Q1 rose 85% yr/yr; net income up 50%

• Company raised full-year outlook and announced acquisition of National Technology Integrators

Outlook

• Dycom raises full-year fiscal 2027 contract revenue outlook to $7.38 bln-$7.65 bln

• Company expects Q2 contract revenues of $1.94 bln-$2.01 bln

• Dycom anticipates adjusted EBITDA margin expansion for fiscal 2027

Result Drivers

• FIBER AND DATA CENTER DEMAND - Co said strong demand for fiber infrastructure and data center builds drove revenue growth

• GEOGRAPHIC EXPANSION AND FIBER BUILDS - Communications segment growth driven by expansion into new geographies and increased fiber-to-the-home projects, aided by favorable seasonal conditions

• MARGIN EXPANSION - Margin improvement attributed to operating leverage and investments to scale operations and increase headcount

Company press release: ID:nGNX4dFq4Y

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q1 Contract Revenue		$1.96 bln
Q1 EPS		$3
Q1 Net Income		$91.30 mln
Q1 Adjusted EBITDA		$262.50 mln
Q1 Pretax Profit		$106.71 mln

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 12 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the construction & engineering peer group is "buy"

• Wall Street's median 12-month price target for Dycom Industries Inc is $475.00, about 13% above its May 26 closing price of $420.47

• The stock recently traded at 28 times the next 12-month earnings vs. a P/E of 28 three months ago

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