Dycom financials are indicative of pressure from external factors
In 2021, total contract revenues for Dycom Industries Inc. (Dycom) excluding storm restoration services declined 0.2%. However, contract revenues from storm restoration fell from $14.6 million in 2020, down to just $3.9 million in 2021, marking weak demand stemming from adverse weather. As the company is highly susceptible to seasonality and significant weather changes, the company’s reported revenue excluding such volatile services jumped over the year. Growth from other services during the year was driven by network upgrades for wireless carriers and increased wireless data traffic, driving telecommunications network operators to upgrade technology to meet demand.
COVID|Balance Sheet|Discontinued ActivityIn response to volatile demand in the wake of the first COVID-19 surge, the company undertook a comprehensive cost reduction program, aimed at shoring up labor and supply costs.
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