* 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 (Reuters) - 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 sequentially.
For AT&T, Dycom’s largest customer, it renewed construction services agreements in Georgia and South Carolina.
The company said it expected to benefit from the broadband stimulus plan from the second half of 2010, and then in 2011 and 2012.
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.
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 Samuel)