Why Daktronics Shares Are Surging Today

Daktronics, Inc. DAKT reported first-quarter FY24 net sales growth of 35.3% year-over-year to $232.5 million, beating the consensus of $197.70 million.

The sales growth was driven by fulfilling orders in backlog, especially in the HSPR business area.

Orders in the quarter declined 6.8% Y/Y to $158.63 million, reflecting a decrease in the Commercial business unit caused by volatility in bookings of larger-sized Spectacular LED video display projects.

EPS improved to $0.42 from $(0.12) in 1Q23, beating the consensus of $0.17.

Adjusted net income was $28.75 million, compared to a loss of $(5.33) million a year ago.

The gross margin expanded to 30.6% for the quarter from 15% a year ago.

Operating income was $40.22 million, compared to a loss of $(5.52) million in 1Q23. The operating margin was 17.3%.

Product order backlog was $323.7 million as of July 29, 2023, compared to $400.7 million in 4Q23 and $469.1 in 1Q23.

At the end of the quarter, cash, restricted cash, and marketable securities totaled $54.9 million, and $41.4 million of long-term debt was outstanding.

The company generated $19.3 million from operations and used $(4.5) million for purchases of property and equipment during the quarter.

Price Action: DAKT shares are trading higher by 7.16% at $8.98 on the last check Wednesday.