Dycom Industries, Inc. (NYSE:DY) Analysts Are Pretty Bullish On The Stock After Recent Results

It's been a good week for Dycom Industries, Inc. (NYSE:DY) shareholders, because the company has just released its latest yearly results, and the shares gained 5.4% to US$126. It looks like the results were a bit of a negative overall. While revenues of US$4.2b were in line with analyst predictions, statutory earnings were less than expected, missing estimates by 2.4% to hit US$7.37 per share. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

View our latest analysis for Dycom Industries

Taking into account the latest results, the most recent consensus for Dycom Industries from seven analysts is for revenues of US$4.51b in 2025. If met, it would imply a modest 7.9% increase on its revenue over the past 12 months. Statutory per share are forecast to be US$7.36, approximately in line with the last 12 months. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$4.45b and earnings per share (EPS) of US$7.18 in 2025. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.

The consensus price target rose 14% to US$145, suggesting that higher earnings estimates flow through to the stock's valuation as well. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic Dycom Industries analyst has a price target of US$160 per share, while the most pessimistic values it at US$125. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. The analysts are definitely expecting Dycom Industries' growth to accelerate, with the forecast 7.9% annualised growth to the end of 2025 ranking favourably alongside historical growth of 5.2% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 7.7% annually. Dycom Industries is expected to grow at about the same rate as its industry, so it's not clear that we can draw any conclusions from its growth relative to competitors.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Dycom Industries following these results. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Dycom Industries analysts - going out to 2027, and you can see them free on our platform here.

You still need to take note of risks, for example - Dycom Industries has 1 warning sign we think you should be aware of.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.