Results: Dycom Industries, Inc. Beat Earnings Expectations And Analysts Now Have New Forecasts

Dycom Industries, Inc. (NYSE:DY) just released its latest quarterly results and things are looking bullish. The company beat forecasts, with revenue of US$1.3b, some 5.4% above estimates, and statutory earnings per share (EPS) coming in at US$2.09, 27% ahead of expectations. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

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Taking into account the latest results, the current consensus from Dycom Industries' nine analysts is for revenues of US$5.38b in 2026. This would reflect a solid 12% increase on its revenue over the past 12 months. Per-share earnings are expected to shoot up 20% to US$9.66. Before this earnings report, the analysts had been forecasting revenues of US$5.24b and earnings per share (EPS) of US$9.27 in 2026. So there seems to have been a moderate uplift in sentiment following the latest results, given the upgrades to both revenue and earnings per share forecasts for next year.

See our latest analysis for Dycom Industries

With these upgrades, we're not surprised to see that the analysts have lifted their price target 24% to US$261per share. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. The most optimistic Dycom Industries analyst has a price target of US$300 per share, while the most pessimistic values it at US$250. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. It's clear from the latest estimates that Dycom Industries' rate of growth is expected to accelerate meaningfully, with the forecast 16% annualised revenue growth to the end of 2026 noticeably faster than its historical growth of 9.5% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 7.8% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Dycom Industries is expected to grow much faster than its industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Dycom Industries' earnings potential next year. Happily, they also upgraded their revenue estimates, and are forecasting them to grow faster than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Dycom Industries going out to 2028, and you can see them free on our platform here.

It is also worth noting that we have found 1 warning sign for Dycom Industries that you need to take into consideration.

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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.