Shares of Dycom Industries Inc. were lower after the specialty contracting company issued light fourth-quarter revenue guidance and warned that macroeconomic factors, including higher interest rates, could affect demand.
Dycom stock slipped 15% to $93.34 a share in midday trading. Shares are 3% lower this year.
The company said it expects revenue for the current quarter, which ends on Jan. 28, to rise by a mid- to high-single digit percentage from a year earlier. According to FactSet, analysts surveyed by FactSet expected revenue to rise by 12%.
For the recently ended quarter, the company beat Wall Street expectations for revenue and profit.
Macroeconomic conditions, including higher interest rates that are making it more expensive to borrow money and fund new projects, could affect future demand for Dycom’s services, Chief Executive Steven Nielsen said on a conference call with analysts. The labor market remains tight in many regions of the U.S., he said, and supply-chain challenges continue to make procurement expensive.
Dycom provides engineering services, construction, maintenance and installation services, mostly to telecommunications providers.