Dycom Industries: Return On Capital Employed Insights


27% profit every 20 days?

This is what Nic Chahine averages with his option buys. Not selling covered calls or spreads… BUYING options. Most traders don’t even have a winning percentage of 27% buying options. He has an 83% win rate. Here’s how he does it.


Looking at Q1, Dycom Industries (NYSE:DY) earned $1.40 million, a 160.88% increase from the preceding quarter. Dycom Industries's sales decreased to $727.50 million, a 3.09% change since Q4. Dycom Industries collected $750.66 million in revenue during Q4, but reported earnings showed a $2.29 million loss.

What Is Return On Capital Employed?

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Changes in earnings and sales indicate shifts in Dycom Industries's Return on Capital Employed, a measure of yearly pre-tax profit relative to capital employed by a business. Generally, a higher ROCE suggests successful growth of a company and is a sign of higher earnings per share in the future. In Q1, Dycom Industries posted an ROCE of 0.0%.

It is important to keep in mind ROCE evaluates past performance and is not used as a predictive tool. It is a good measure of a company's recent performance, but several factors could affect earnings and sales in the near future.

Return on Capital Employed is an important measurement of efficiency and a useful tool when comparing companies that operate in the same industry. A relatively high ROCE indicates a company may be generating profits that can be reinvested into more capital, leading to higher returns and growing EPS for shareholders.

For Dycom Industries, the return on capital employed ratio shows the number of assets can actually help the company achieve higher returns, an important note investors will take into account when gauging the payoff from long-term financing strategies.

Q1 Earnings Insight

Dycom Industries reported Q1 earnings per share at $-0.04/share, which did not meet analyst predictions of $0.06/share.


27% profit every 20 days?

This is what Nic Chahine averages with his option buys. Not selling covered calls or spreads… BUYING options. Most traders don’t even have a winning percentage of 27% buying options. He has an 83% win rate. Here’s how he does it.


Posted In: NewsBZI-ROCE