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Dycom shares decline on weak results, forecast
(Reuters) - Shares of Dycom Industries Inc (DY.N), which sets up cable systems for telecom carriers and cable TV operators, hit an eleven-month low after the company posted lower-than-expected quarterly results and warned of weak revenue over the next several quarters.
The company's stock dropped 19 percent to $15.22, making it the biggest percentage loser on the New York Stock Exchange on Wednesday.
Dycom, which also provides services to oil and gas companies, expects revenue to be slightly down to about flat for the next several quarters, Chief Executive Steven Nielsen said on a conference call with analysts.
The CEO said the company also does not expect a pick-up in customer spending.
Telecom service providers are delaying or canceling orders on a faltering U.S. recovery and weakness in Europe.
Dycom counts rural telephone operator CenturyLink Inc (CTL.N) as its largest customer. It also has ongoing maintenance contracts with Charter Communications Inc (CHTR.O), Verizon Communications Inc (VZ.N) and Comcast Corp (CMCSA.O).
Dycom on Tuesday posted fourth-quarter net income of 39 cents per share. Analysts on average had expected 41 cents, according to Thomson Reuters I/B/E/S.
Contract revenue climbed 5 percent to $318 million but was still below expectations of $323.7 million.
Revenue from storm restoration services fell as much as 83 percent to $2.3 million.
(Reporting by Kartick Jagtap in Bangalore; Editing by Maju Samuel)
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