Engineering and Design Services Stocks Q3 Earnings Review: Dycom (NYSE:DY) Shines

Wrapping up Q3 earnings, we look at the numbers and key takeaways for the engineering and design services stocks, including Dycom (NYSE:DY) and its peers.

Companies providing engineering and design services boast ever-evolving technical expertise. Compared to their counterparts who manufacture and sell physical products, these companies can also pivot faster to more trending areas due to their smaller physical asset bases. Green energy and water conservation, for example, are current themes driving incremental demand in this space. On the other hand, those providing engineering and design services are at the whim of construction and infrastructure project volumes, which tend to be cyclical and can be impacted heavily by economic factors such as interest rates.

The 5 engineering and design services stocks we track reported a strong Q3. As a group, revenues missed analysts’ consensus estimates by 1.2% while next quarter’s revenue guidance was 1.9% below.

In light of this news, share prices of the companies have held steady as they are up 3.3% on average since the latest earnings results.

Best Q3: Dycom (NYSE:DY)

Dycom reported revenues of $1.27 billion, up 12% year on year. This print exceeded analysts’ expectations by 4.3%. Overall, it was a very strong quarter for the company with a solid beat of analysts’ adjusted operating income estimates.

Dycom pulled off the biggest analyst estimates beat of the whole group. Investor expectations, however, were likely higher than Wall Street’s published projections, leaving some wishing for even better results (analysts’ consensus estimates are those published by big banks and advisory firms, not the investors who make buy and sell decisions). The stock is down 10.2% since reporting and currently trades at $181.90.

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MasTec (NYSE:MTZ)

MasTec reported revenues of $3.25 billion, flat year on year, falling short of analysts’ expectations by 5.4%. However, the business still had a strong quarter with a solid beat of analysts’ EPS estimates and an impressive beat of analysts’ adjusted operating income estimates.

The market seems happy with the results as the stock is up 9.6% since reporting. It currently trades at $134.79.

Weakest Q3: AECOM (NYSE:ACM)

AECOM reported revenues of $4.11 billion, up 7% year on year, in line with analysts’ expectations. It was a mixed quarter as it posted full-year EPS guidance slightly topping analysts’ expectations but a miss of analysts’ adjusted operating income estimates.

Interestingly, the stock is up 2.6% since the results and currently trades at $112.

Sterling (NASDAQ:STRL)

Sterling reported revenues of $593.7 million, up 6% year on year. This print came in 2.3% below analysts' expectations. In spite of that, it was a strong quarter as it produced an impressive beat of analysts’ EBITDA and EPS estimates.

Sterling scored the highest full-year guidance raise among its peers. The stock is up 4.7% since reporting and currently trades at $183.78.

EMCOR (NYSE:EME)

EMCOR reported revenues of $3.70 billion, up 15.3% year on year. This result missed analysts’ expectations by 2.5%. Taking a step back, it was still a strong quarter as it put up a solid beat of analysts’ EBITDA estimates.

EMCOR delivered the fastest revenue growth but had the weakest full-year guidance update among its peers. The stock is up 9.9% since reporting and currently trades at $474.31.

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This content was originally published on Stock Story