Earnings Highlights and Review: Daktronics Reported Profitable Quarter

LONDON, UK / ACCESSWIRE / June 21, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on Daktronics Inc. (NASDAQ: DAKT), which can be viewed by registering at http://protraderdaily.com/optin/?symbol=DAKT, following the Company’s disclosure of its fourth quarter and fiscal 2017 financial results on May 31, 2017. The video display maker reported a 3.8% increase in sales yet numbers came in below market expectations. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member’s account at:

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Earnings Reviewed

Daktronics reported fiscal 2017 fourth quarter net sales of $143.7 million, up 3.8% compared to net sales of $138.5 million in Q4 FY16. The Company’s reported numbers came in below analysts’ estimates of $145.1 million. For FY17, Daktronics reported net sales of $586.5 million compared to net sales of $570.2 million in FY16.

Daktronics’ gross profit was 23.5% for Q4 FY17 compared to 20.2% in Q4 FY16. The Company’s total warranty as a percentage of sales was 1.7% compared to 4.6% in the prior year’s same quarter. For FY17, Daktronics’ gross profit improved to 23.9% compared to 21.2% during FY16. Gross margin percentages were favorably impacted by lower production costs, lower warranty costs as a percentage of sales, higher sales volume, and a favorable mix in sales. Total warranty as a percentage of sales was 2.5% during FY17 compared to 4.1% in FY16.

For Q4 FY17, Daktronics reported operating income of $1.7 million compared to operating loss of $3.7 million in Q4 FY16. The Company’s operating income as a percentage of sales increased to 1.2% for the reported quarter compared to an operating loss as a percentage of sales of 2.6% for the prior year’s same quarter.

Daktronics’ orders were $178.1 million, up 24.4% in Q4 FY17 compared to $143.2 million in Q4 FY16. Orders increased in the Live Events, High School Park and Recreation, and Transportation business units, decreased in the Commercial business unit, and remained relatively flat in the International business unit. Daktronics’ backlog at the end of Q4 FY17 was $203 million compared to a backlog of $181 million in Q4 FY16.

For Q4 FY17, Daktronics reported net income of $0.9 million, or $0.02 per diluted share, compared to a net loss of $2.9 million, or $0.07 per diluted share, for Q4 FY16.

Daktronics’ net income and earnings per share for FY17 were $10.3 million and $0.23 per diluted share, respectively, compared to $2.1 million and $0.05 per diluted share, respectively, for FY16.

Cash Matters

Daktronics’ cash flow provided by operating activities for the fiscal year ended April 29, 2017 was $39.6 million compared to $13.6 million in FY 2016. The Company’s free cash flow was a positive $31.1 million for FY17 compared to a negative free cash flow of $3.3 million for FY16.

Daktronics’ net investment in property and equipment was $8.5 million for FY17 compared to $16.9 million for FY16. Daktronics repurchased approximately 0.3 million shares of common stock at an average price of $6.42 per share for a total use of cash of $1.8 million during FY17. Daktronics’ cash, restricted cash, and marketable securities at the end of Q4 FY17 were $65.6 million compared to $53.2 million at the end of Q4 FY16.

On June 02, 2017, Daktronics announced that its Board of Directors on June 01, 2017, approved a regular quarterly cash dividend of $0.07 per share. The quarterly dividend will be payable on June 23, 2017, to shareholders of record as of the close of business on June 13, 2017.

Stock Performance

On Tuesday, June 20, 2017, the stock closed the trading session at $9.72, dropping 1.32% from its previous closing price of $9.85. A total volume of 78.24 thousand shares have exchanged hands. Daktronics’ stock price soared 7.64% in the last one month, 6.11% in the past three months, and 52.11% in the previous twelve months. The stock is trading at a PE ratio of 41.54 and has a dividend yield of 2.88%. The stock currently has a market cap of $433.41 million.

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