What: Dycom Industries Inc. provides telecommunications companies specialty contracting services -- including engineering, construction, maintenance and installation -- in the U.S. and Canada. Shares of the company are jumping 10% higher today after the company released its fiscal 2016 third-quarter results.
Continue Reading Below
So what: Looking at the top and bottom lines, investors were clearly happy with both results. The company's revenue checked in at $664.6 million during the fiscal 2016 third quarter compared to analysts' estimates of about $598 million. That solid top-line growth filtered down to the bottom line, too.
After missing estimates last quarter, Dycom rebounded by posting adjusted earnings per share of $1.08 during the fiscal 2016 third quarter. That beat consensus estimates from Zacks Investment Research by a whopping 44%.
Now what: Despite a slight slowdown during the preceding quarter, industry tailwinds should help keep the company's momentum going.
Image source: Dycom Industries' fiscal third-quarter presentation.
Dycom's telecommunications companies continue to develop more extensive 1-gigabye wire networks for major customers, which should help open up growth opportunities, and it's a good sign for investors that the company's backlog keeps moving higher. Dycom's guidance for fourth-quarter adjusted earnings per share are between $1.45 and $1.60 on revenue between $750 and $780 million. For comparison, that would be a large improvement on the prior year's fiscal fourth-quarter adjusted earnings per share of $0.97 on revenue of $578.5 million.
The article Shares of Dycom Industries Pop After Strong Fiscal 2016 Third Quarter originally appeared on Fool.com.
Daniel Miller has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
Copyright 1995 - 2016 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.