Dycom Industries Inc. fell 5.5% in pre-market trading on Wednesday after the telecom infrastructure contractor reported better-than-expected second-quarter earnings but issued conservative third-quarter guidance.
The company’s shares dropped to $332.50, extending losses from Tuesday’s close of $351.80 and extending a decline from the 52-week high of $566.47. The slide followed the release of the company’s fiscal second-quarter results, which showed adjusted earnings per share of $5.29, exceeding the consensus estimate of approximately $4.70. Revenue reached $2.01 billion, slightly above the $1.98 billion forecast.
The year-over-year revenue increase of 45.6% was attributed to expansion in fiber-to-the-home buildouts, long-haul and middle-mile fiber infrastructure projects, and data center electrical contracting work. The company also noted a $150 million share repurchase authorization approved by its board.
However, Dycom’s outlook for the third quarter fell short of expectations. The company guided adjusted EPS to a range of $4.33 to $4.79, with a midpoint of $4.56, below the analyst consensus of $4.68. Revenue guidance for the period was set between $1.9 billion and $2.0 billion.
The company confirmed that board member Jennifer Fritzsche resigned effective August 25, stating that her departure was unrelated to any operational disagreement. Separately, Raymond James added Dycom to its Analyst Current Favorites list, providing a modest offset to the negative sentiment.
Shares of Dycom, which had gained roughly 15% year-to-date prior to Wednesday’s decline, now trade well below their recent peaks amid broader concerns over infrastructure spending momentum and sector valuation adjustments.
