Dycom Industries, Inc. (NYSE:DY) shares surged after the company posted record third-quarter results, raised its outlook, and disclosed a major acquisition.

Earnings Details

Contract revenues were up 14.1% year over year (Y/Y) to $1.45 billion, beating the analyst estimates of $1.41 billion.

Organic revenue grew 7.2%, while contract revenues from acquired businesses rose to $110.9 million from $21.0 million in the prior-year quarter.

Adjusted EBITDA rose 28.5% Y/Y to $219.4 million, or 15.1% of contract revenues.

Adjusted EPS of $3.63 beat analyst estimates of $3.20.

Operating cash flow for the quarter was $220 million. The company ended the quarter with a backlog of $8.2 billion and cash and equivalents of $110.1 million.

Management Commentary

“The demand drivers for telecommunications and digital infrastructure have never been stronger, fueled by accelerating fiber builds, a massive ramp-up in data ...