The 10-second takeaway
For the quarter ended Jan. 28 (Q3), Daktronics beat expectations on revenues and whiffed on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly, and GAAP earnings per share didn't change.
Gross margins dropped, operating margins expanded, and net margins contracted.
Daktronics reported revenue of $122.9 million. The five analysts polled by S&P Capital IQ anticipated sales of $116.3 million on the same basis. GAAP reported sales were 23% higher than the prior-year quarter's $99.9 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.04. The five earnings estimates compiled by S&P Capital IQ anticipated $0.07 per share. GAAP EPS of $0.04 were the same as the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 22.7%, 100 basis points worse than the prior-year quarter. Operating margin was 1.5%, 70 basis points better than the prior-year quarter. Net margin was 1.4%, 40 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $121.1 million. On the bottom line, the average EPS estimate is $0.02.
Next year's average estimate for revenue is $496.1 million. The average EPS estimate is $0.24.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 424 members rating the stock outperform and 35 members rating it underperform. Among 100 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 96 give Daktronics a green thumbs-up, and four give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Daktronics is outperform, with an average price target of $12.50.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.