The 10-second takeaway
For the quarter ended April 28 (Q4), Daktronics missed estimates on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped slightly and GAAP earnings per share contracted to a loss.
Margins contracted across the board.
Daktronics reported revenue of $112.0 million. The four analysts polled by S&P Capital IQ predicted sales of $118.5 million on the same basis. GAAP reported sales were 2.1% lower than the prior-year quarter's $114.4 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 -$0.01. The four earnings estimates compiled by S&P Capital IQ anticipated $0.04 per share. GAAP EPS were -$0.01 for Q4 versus $0.07 per share for 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 22.0%, 290 basis points worse than the prior-year quarter. Operating margin was -2.3%, 660 basis points worse than the prior-year quarter. Net margin was -0.5%, 310 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $125.8 million. On the bottom line, the average EPS estimate is $0.10.
Next year's average estimate for revenue is $520.4 million. The average EPS estimate is $0.34.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 426 members out of 462 rating the stock outperform, and 36 members rating it underperform. Among 89 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 85 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 $11.88.
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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.