Shares of Dycom Industries Inc. (DY, Financial) fell more than 20% after the company reported first-quarter earnings per share of 65 cents on $731.38 million in revenue, a 7% year-over-year decline. The company fell short of earnings estimates by 4 cents and revenue expectations by $3.48 million.
Non-GAAP adjusted earnings before interest, taxes, depreciation and amortization were $73.7 million, or 10.1% of contract revenues, for the quarter ended April 28, which was a decrease from $108.2 million, or 13.8% of contract revenues, for the prior-year quarter.Â
Looking ahead, the company revised its financial guidance for fiscal 2019. Contract revenues are expected to be between $3.23 billion and $3.43 billion, with diluted earnings per share of $3.81 to $4.70 on a GAAP basis. On a non-GAAP basis, adjusted diluted earnings per share are expected to be in the range of $4.26 to $5.15.
Shares of V.F. Corp. (VFC, Financial) traded lower on news it is being split into two companies.
“With these strong foundations in place, we are now ideally positioned to create two independent, leading, global companies," Chairman, President and CEO Steve Rendle said. "In alignment with our strategic plan, the decision to separate these businesses will allow VF to sharpen its focus as a consumer-centric and retail-minded organization anchored in activity-based lifestyle brands."
With the separation, the two companies will benefit in strategic items and management focus; taking advantage of reduced managerial and operational complexity, giving a flexible capital structure to focus on independent growth priorities.
Disclosure: The author holds no positions in any stocks mentioned.
