Get All Access for FREEMarket News & Research,
Live Transcripts & Audio,
and a whole lot more…
$DY said that full-year 2016 effective tax rate was 37.6% and slightly lower for 4Q16 as the company benefited from tax credits in relation to pretax operating results. 4Q16 non-GAAP adjusted EPS was $1.64 per share vs. $0.97 in 4Q15. Liquidity exceeded $426MM at quarter-end and $DY reduced borrowings on its credit agreement by $17.8MM.
$DY now expects 4Q17 contract revenues of $780-810MM, including about $25MM of revenue from acquired businesses that were not owned for the full period in both the current and prior year periods. The company sees EPS of $1.26-1.41 and non-GAAP EPS of $1.35-1.50.
$DY reported a rise in 3Q17 earnings driven by higher contract revenues. Net income rose to $38.8MM or $1.22 per share from $33.1MM or $1.00 per share last year. Contract revenue grew to $786.34MM from $664.65MM. Adjusted EPS increased to $1.30 from $1.08.
$DY, which acquired Goodman Networks in July 2016, expects revenue from Goodman for the next several quarters to approximate $10MM per quarter. Since a customer modified its plans, the company has reduced its forecasted revenue for that customer for the balance of FY17 by approx. $80MM.
Specialty contracting services provider $DY reported a rise in its 1Q17 profit, helped by higher revenues compared to a year ago. Net income rose to $51MM or $1.59 per diluted share from $30.8MM or $0.91 per diluted share in 4Q15. Revenue rose 21% to $799.2MM. Non-GAAP EPS was $1.67 versus $1.24 in the prior year.
D.A. Davidson analyst John Rogers questions whether the market share growth experienced in customers consolidating supply chain are national contracts. $DY says that the relationships are increasingly national when there are big national programs. The company still comes to the marketplace as individual contracts on a region-by-region basis.
KeyBanc analyst Tahira Afzal asks how much is backlog as a percentage of revenues all the way down to net sales. $DY says that some industry experts said that for a 4G LTE network, about 90% of the communication path is wired, while for a 5G mmWave communication path, it could be 95% or more of the path that is actually wired.