* Sees Q4 revenue rising 10 pct sequentially
* Says renews contracts with AT&T, Comcast, Verizon
* Shares up as much as 18 percent (Adds comments from
conference call; updates share movement)
May 26 Shares of Dycom Industries Inc (DY.N)
rose as much as 18 percent Wednesday, a day after the
engineering and construction services firm reported
third-quarter results above analysts' estimates, helped in part
by marginally lower costs.
On a conference call with analysts, the company, whose
customers include telecommunications providers and utilities,
forecast fourth-quarter revenue to grow more than 10 percent
Dycom said it renewed contracts with three of its five
biggest customers -- AT&T Inc (T.N), Comcast Corp (CMCSA.O) and
Verizon Communications Inc (VZ.N).
For AT&T, Dycom's largest customer, it renewed construction
services agreements in Georgia and South Carolina.
The three companies, along with Centurylink (CTL.N) and
Time Warner Inc (TWX.N), contributed about 69 percent to
third-quarter revenue of $231.6 million.
The company said it expected to benefit from the broadband
stimulus plan from the second half of 2010, and then in 2011
In March, U.S. regulators released a blueprint for
upgrading Internet access for all Americans, with Internet
speeds up to 25 times the current average, expanded coverage
and more airwaves for mobile services.
A shift in airwaves from broadcasters like CBS Corp (CBS.N)
could benefit wireless providers like AT&T (T.N) and Verizon
For the third quarter ended April 24, Dycom earned 2 cents
a share, excluding items.
Revenue fell 10 percent to $231.6 million.
Analysts on average were expecting the company to break
even, on revenue of $225.5 million, according to Thomson
Reuters I/B/E/S. [ID:nASA00EH8]
Net other income in the quarter rose 25 percent to $4.5
million, while costs fell 7 percent $191.3 million.
Shares of the company were trading up 16 percent at $9.86
in midday trading on the New York Stock Exchange. They touched
a high of $10.04 earlier in the session.
(Reporting by Megha Mandavia in Bangalore; Editing by Maju