Dycom (DY, $62.00) shares plunge almost -30%, on Q4 earnings miss and lower-than-expected Q1 guidance
Dycom Industries stock plummeted nearly -30%, following news of the company’s weaker-than-expected earnings for the fourth quarter, in addition to its lower-than-expected earnings guidance for the forthcoming first quarter.
The specialty contracting services company reported earnings of 10 cents per share for the fourth quarter, which fell short of analysts’ expectations of 15 cents a share.
The company’s fourth quarter revenue of $749 million came in lower than analysts’ estimates of $721 million.
Looking ahead, the company is expecting its first quarter earnings to come in between 34 cents and 56 cents per share, which is below analysts’ expectation of 77 cents per share. The company forecasts revenue to range between $750 million and $800 million, compared to analysts’ prediction of $790 million.
DY in upward trend: price expected to rise as it breaks its lower Bollinger Band on April 10, 2024
DY may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options. In of 42 cases where DY's price broke its lower Bollinger Band, its price rose further in the following month. The odds of a continued upward trend are .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Stochastic Oscillator suggests the stock price trend may be in a reversal from a downward trend to an upward trend. of 56 cases where DY's Stochastic Oscillator exited the oversold zone resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where DY advanced for three days, in of 308 cases, the price rose further within the following month. The odds of a continued upward trend are .
Bearish Trend Analysis
The 10-day RSI Indicator for DY moved out of overbought territory on March 18, 2024. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 33 similar instances where the indicator moved out of overbought territory. In of the 33 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Momentum Indicator moved below the 0 level on April 10, 2024. You may want to consider selling the stock, shorting the stock, or exploring put options on DY as a result. In of 84 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
The Moving Average Convergence Divergence Histogram (MACD) for DY turned negative on March 22, 2024. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 52 similar instances when the indicator turned negative. In of the 52 cases the stock turned lower in the days that followed. This puts the odds of success at .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where DY declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
The Aroon Indicator for DY entered a downward trend on April 23, 2024. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Fundamental Analysis (Ratings)
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 66, placing this stock better than average.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. DY’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (3.877) is normal, around the industry mean (3.324). P/E Ratio (19.073) is within average values for comparable stocks, (43.049). Projected Growth (PEG Ratio) (0.000) is also within normal values, averaging (1.693). Dividend Yield (0.000) settles around the average of (0.033) among similar stocks. P/S Ratio (1.000) is also within normal values, averaging (1.798).
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Fundamental Analysis Ratings
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General Information
a provider of engineering, construction, maintenance and installation services to telecommunications providers
Industry EngineeringConstruction