Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



Why Daktronics Shares Plunged

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of Daktronics (NASDAQ: DAKT  ) plunged today by as much as 20% after the company reported earnings.

So what: Revenue in the fiscal third quarter came in at $111.1 million, which was shy of the consensus estimate of $123.8 million in sales. The earnings per share of $0.06 was also light relative to the $0.07 per share profit that the market was expecting. CEO Jim Morgan said sales were hurt by on-site schedule changes that delayed several large projects.

Now what: Gross profit was also negatively affected by the weak top line since the company has a high level of fixed costs in its infrastructure. Daktronics also said its order backlog includes some work that won't be recognized in the fourth quarter, either, due to customer schedules. That being said, revenue in the current quarter is still expected to grow both sequentially and year over year. Gross profit will be lower due to shifts in the business mix toward lower-margin contracts.

Interested in more info on Daktronics? Add it to your watchlist by clicking here.

With the U.S. relying on the rest of the world for such a large percentage of our goods, many investors are ready for the end of the "made in China" era. Well, it may be here. Read all about the biggest industry disrupters since the personal computer in out free report: "3 Stocks to Own for the New Industrial Revolution." Just click here to learn more.


Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2263606, ~/Articles/ArticleHandler.aspx, 9/24/2016 8:27:48 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 23 hours ago Sponsored by:
DOW 18,261.45 -131.01 -0.71%
S&P 500 2,164.69 -12.49 -0.57%
NASD 5,305.75 -33.78 -0.63%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

9/23/2016 4:00 PM
DAKT $9.84 Down -0.05 -0.51%
Daktronics CAPS Rating: ***