Dycom Industries Inc (NYSE:DY), a leading provider of specialty contracting services throughout the United States, stock fell 1.34% (As on August 22, 11:30:17 AM UTC-4, Source: Google Finance) after the company reported second quarter earnings that beat analyst expectations. Non-GAAP Adjusted Net Income was $72.5 million for the quarter ended July 27, 2024. During the quarter ended July 27, 2024, the Company amended its credit agreement to, among other things, expand term loan capacity and extend the maturity to January 2029. During the six months ended July 27, 2024, the Company purchased 210,000 shares of its own common stock in open market transactions for $29.8 million at an average price of $141.84 per share.

DY in the second quarter of FY 24 has reported the adjusted earnings per share of $2.46, beating the analysts’ estimates for the adjusted earnings per share of $2.26. The company had reported the adjusted revenue growth of 15.5 percent to $1.203 billion in the second quarter of FY 24, which is inline with the analysts’ estimates for revenue of $1.203 billion. On an organic basis, contract revenues increased 9.2% after excluding $65.9 million of contract revenues from acquired businesses that were not owned during the year ago quarter. Non-GAAP Adjusted EBITDA increased to $158.3 million, or 13.2% of contract revenues, for the quarter ended July 27, 2024, compared to $130.8 million, or 12.6% of contract revenues, in the year ago quarter.

For the third quarter, the company expects total contract revenues to increase mid- to high-single digits compared to $1.136 billion in the same period last year. . Included in the expectation for the current quarter is approximately $75 million of acquired revenues, compared to the prior year period that included $45.2 million of acquired revenues and $26.5 million of revenues from the impacts of a change order and the closeout of several projects. Non-GAAP Adjusted EBITDA as a percentage of contract revenues for the quarter ending October 26, 2024 is expected to increase approximately 25 to 50 basis points compared to 12.9% for the quarter ended October 28, 2023, after excluding 1.8% of incremental benefit in EBITDA margin from the impacts of a change order and the closeout of several projects reported in the prior year period.

The company also announced plans for a CEO transition, with Nielsen set to retire on November 30, 2024. As part of this succession plan, Dycom will incur approximately $11.4 million in stock-based compensation modification expenses through Nielsen’s retirement date.

Meanwhile, the company has acquired Black & Veatch’s public carrier wireless telecommunications infrastructure business. The acquired business provides wireless construction services primarily in the states of New York, New Jersey, Missouri, Kansas, Colorado, Utah, Wyoming, Idaho and Montana. The acquisition strategically strengthens Dycom’s customer base and expands geographic scope to more broadly address growth opportunities in wireless network modernization, including Open RAN transformation initiatives, and deployment services. For fiscal 2026, the acquired business is expected to contribute $250 million to $275 million of contract revenues.