What happened
Shares of Daktronics (DAKT) rallied as much as 19% early Wednesday, but settled to trade up 6.1% as of 3:55 p.m. ET after the electronic display components specialist announced strong fiscal first-quarter 2024 results (for the period ended July 29, 2023).
Quarterly revenue climbed 35.3% year over year, to $232.5 million -- above analysts' models for revenue closer to $198 million -- while net income based on generally accepted accounting principles (GAAP) swung to $19.2 million, or $0.42 per share, from a loss of $0.12 per share in the same year-ago period. On an adjusted (non-GAAP) basis, Daktronics' earnings were $0.62 per share, well above consensus estimates for adjusted earnings of $0.17 per share.
So what
Daktronics Chairman and CEO Reece Kurtenbach credited the company's performance to "strong execution across all business areas," noting his teams effectively utilized their capacity to complete manufacturing and installation in time for the start of the fall football season within its High School Park and Recreation (HSPR) business. He added that lead times for customers are now back down close to pre-pandemic levels.
The company also reminded investors that in last year's fiscal first quarter it was facing significant supply chain disruptions, labor shortages, and pandemic-related shutdowns of its facilities in Shanghai, China.
Now what
Daktronics didn't provide specific forward guidance. But with its pandemic-related challenges having largely passed and its operating environment essentially stabilized, it's hardly surprising to see the stock popping today.
