Dycom Industries shares have plummeted 21.6% this week after its second-quarter 2027 earnings report revealed a shrinking profit margin, prompting multiple analyst price target cuts. Despite beating revenue estimates with $2.01 billion against an expected $1.98 billion, the company's adjusted EBITDA margin for its communications segment fell to 13.6% from 14.9% a year earlier, which management attributed to scaling investments, deferred wireless projects, and fuel costs. KeyBanc lowered its price target to $423 from $610, and Cantor Fitzgerald cut its to $476 from $654. However, the company's backlog reached a record $12.2 billion, and it generated $37.9 billion in free cash flow, up from $18.4 billion in the prior year's quarter, suggesting contrarian investors may find opportunity in the sell-off.
Dycom Industries IncQ2 earnings report showed shrinking EBITDA margin, prompting analyst price target cuts.
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