Dycom Industries (NYSE:DY) shares crumbled in premarket trade Monday to near a 20-month low after the company slashed profit and sales estimates for the fiscal year ending in January 2019.
The company lowered its forecast revenues to US$3.01bln to US$3.11bn, from the previous US$3.23bn to US$3.43bn. Earnings per share was cut to US$2.17 to US$2.62, from US$3.81 to US$4.70.
In its second-quarter results, Dycom said revenue came in at US$799.5mln, down sharply from its guidance of US$830mln to US$860mln. The average consensus was for revenue of US$844.46mln while year-ago revenue was at US$780.19mln.
The company said earnings per share would be at US$0.94 to US$0.97, from the guidance of US$1.02 to US$1.17. The average estimate was for earnings of US$1.19 per share and the year-ago level is US$1.47.
Shares dropped 19.5% in premarket trade to US$70.20. The market closed on Friday 0.1% off at US$89.71.
Palm Beach Gardens, Florida-based Dycom is a leading provider of specialty contracting services throughout the United States and in Canada. The services include program management, engineering, construction, maintenance and installation services for telecommunications providers, underground facility locating services for various utilities, including telecommunications providers, and other construction and maintenance services for electric and gas utilities.
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