PALM BEACH GARDENS, Fla. - Dycom (NYSE:DY) Industries, Inc. (NYSE:DY) reported better-than-expected third quarter results on Wednesday, as the specialty contracting services provider saw strong revenue growth and improved profitability.
Dycom shares edged up 1% in early trading following the earnings release.
The company posted adjusted earnings per share of $2.68 for the quarter ended October 26, 2024, surpassing analyst estimates of $2.31. Revenue rose 12% YoY to $1.27 billion, also topping expectations of $1.22 billion.
Organic revenue growth, which excludes acquired businesses and storm restoration services, came in at 7.6% for the quarter.
Dycom's adjusted EBITDA increased to $170.7 million, or 13.4% of contract revenues, compared to $143.2 million, or 12.9% of contract revenues, in the year-ago period.
"We delivered another strong quarter of double-digit top-line growth and expanded profitability," said Steven Nielsen, President and CEO of Dycom. "Our results reflect continued robust demand for our services across our end markets."
For the fourth quarter, Dycom expects total contract revenues to increase mid- to high-single digits YoY. The company also anticipates adjusted EBITDA margin to expand by approximately 25 basis points compared to Q4 last year.
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