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  "documentTitle": "Dycom Industries, Inc. (DY)",
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  "authorName": "Spruce Point Capital Management",
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  "sourceTypeLabel": "Short seller",
  "presentationDate": "2025-02-19 00:00:00",
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  "notes": "The slide highlights a change in management behavior regarding guidance revisions, framing it as a negative signal.",
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      "kind": "callout",
      "text": "Warning: Two big misses in a row",
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      "kind": "callout",
      "text": "Unlike prior years, no guidance changes during the year",
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      "text": "However, since 2024 management has not revised guidance during the year and is on pace for two consecutive years of large target misses.",
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      "text": "Capex variance: -18.5%",
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      "kind": "paragraph",
      "text": "Spruce Point frequently warns about companies that misforecast capex as it often indicates management has poor capital planning and/or there are underlying growth challenges or uncertainties in the business. In the case of Dycom, we observe that between 2019 - 2023 (which included COVID-19) management frequently revised capex estimates during the year and on average hit their target within 3.3%. However, since 2024 management has not revised guidance during the year and is on pace for two consecutive years of large target misses.",
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      "kind": "source-note",
      "text": "Source: DY SEC filings and conference calls",
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      "text": "Variance Analysis of DY's Capex Forecast vs. Actual",
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      "kind": "title",
      "text": "Failing To Meet Capex Targets Is A Warning Sign Of Future Challenges",
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