Dycom Industries, Inc. (DY) 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 results.
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 $16.0 million.
With preliminary results on the table, we are waiting for the release of second-quarter 2014 results on Feb 25, after market closes.
Dycom currently carries a Zacks Rank #3 (Hold). However, other better-ranked stocks that are worth considering at the moment are Chicago Bridge & Iron (CBI), Fluor Corp. (FLR) and Orion Marine Group Inc. (ORN), all of which carry a Zacks Rank #2 (Buy).
To read this article on Zacks.com click here.
Get all Zacks Research Reports and be alerted to fast-breaking buy and sell opportunities every trading day.
Be the first to comment