- Power Solutions will continue to operate under its existing brand, with no changes to the management team.
- The company's GAAP earnings per share rose 35.4% to $3.63.
- Retail sentiment on Stocktwits flipped to ‘bullish’ from ‘bearish’ a day earlier.
Dycom Industries, Inc. (DY), on Wednesday, signed an agreement to acquire Power Solutions for $1.95 billion. Following the acquisition, Power Solutions will continue to operate under its existing brand, with no changes to the management team.
Dycom said the acquisition expands its presence in the fast-growing, mission-critical data center market. The deal is expected to close before the end of the current fiscal year.
Q3 Print
Separately, the company posted a 14% increase in third-quarter contract revenue to $1.45 billion on Wednesday, while its GAAP earnings per share (EPS) rose 35.4% to $3.63.
Non-GAAP adjusted earnings before interest, tax, depreciation and amortization (EBITDA) increased to $219.4 million, or 15.1% of contract revenues, compared to $170.7 million, or 13.4% of contract revenues, for the prior year quarter.
The company raised the midpoint of its full-year revenue forecast and now expects fiscal 2026 contract revenues of $5.35 billion to $5.43 billion, representing 13.8% to 15.4% growth compared with the previous corresponding period.
The stock was up 6.6% in premarket.
How Did Stocktwits Users React?
Retail sentiment on Stocktwits flipped to 'bullish' from 'bearish' a day earlier, amid 'extremely high' message volumes.
The stock has climbed 82% so far this year .
Get updates to this developing story directly on Stocktwits.
Also See: Why Are Lithium Stocks Gaining In Pre-Market Today?
For updates and corrections, email newsroom[at]stocktwits[dot]com.