Dycom Profit Rises Despite Revenue Drop; Outlook Weak - Update

(RTTNews) - Dycom Industries Inc (DY), a provider of specialty contracting services, Tuesday reported an increase in third-quarter profit, despite a decline in contracting revenues, helped chiefly by lower expenses and other income. Quarterly earnings topped Wall Street estimates, while revenues fell short of expectations.

Moving forward, the company provided some weak guidance for the fourth quarter.

Dycom provides engineering, construction and installation services to telecommunications providers as well as a range of services to utilities.

The Palm Beach Gardens, Florida-based company posted third-quarter net earnings of $7.9 million or $0.23 per share, compared with $7.2 million or $0.21 per share last year.

On average, seven analysts polled by Thomson Reuters expected earnings of $0.22 per share for the quarter. Analysts' estimates typically exclude special items.

Revenues for the third quarter declined to $426.3 million from $437.4 million a year ago. Analysts expected revenues of $429.6 million for the quarter.

Total expenses for the quarter decreased to $412.2 million from $420.4 million in the prior year. Results were also helped by other income of $5.6 million, compared with $1.48 million a year ago.

For the fourth quarter, the company projects earnings of $0.43 to $0.50 per share and revenues of $475 million to $495 million. Analysts currently expect earnings of $0.50 per share on revenues of $491.7 million for the quarter.

Dycom shares closed Tuesday at $31.66, down $1.04 or 3.18%, on a volume of 290k shares on the NYSE.