On the top line, revenues fell 7.0% year/year to $731.4 mln, which also came in below expectations.
To make things worse, the company issued second quarter guidance below current expectations and lowered its fiscal year 2019 earnings and revenue guidance.
The company expects to see earnings of $1.13-1.28/share and revenue of $830-860 mln, both of which easily come in below current expectations, especially the earnings guidance. Then for the full year, the company lowered its earnings guidance of $4.26-5.15, which is down from prior guidance of $5.22-6.14, and revenue guidance of $3.23-3.43 bln, which is down from prior guidance of $3.30-3.50 bln. The company's full year guidance is easily below expectations.
As a result, shares of Dycom are trading lower.
The company said it's seeing strengthening market opportunities despite near-term revenue declines. Excluding revenue from storm restoration services and acquired business, revenue declined 10% organically.
Separately, the company reports that it has solid operating cash flows and liquidity. Operating cash flow at the end of the first quarter was $24.6 mln.
Meanwhile, liquidity is sitting at $459.3 mln at the end of the quarter, which consists of $57.9 mln in cash and $401.4 mln of availability under its credit facility. As of the end of its first quarter, there were no outstanding revolver borrowings.
Ultimately, the company sees firm and strengthening end market opportunities. Also, the company says that industry participants are committed to multi-year capital spending initiatives and these initiatives are increasing in numbers across multiple customers.
In current trade, shares of DY are sitting near today lows.