Daktronics (DAKT) Q3’15 Misses Expectations

Daktronics Inc. (DAKT) reported 2015 third-quarter EPS of $0.01 before the opening bell Tuesday, compared to the consensus estimate of $0.09. Revenues increased 2.3% from last year to $118.1 million. Analysts expected revenues of $132 million. For the third quarter, operating expenses were $26.6 million, up from $25.5 million in the prior year’s third quarter. The stock is currently down $1.95 to $11.00 on 397,868 shares.

“While our third quarter is historically our lightest for revenue, this year we also experienced an operating loss for the quarter, which is uncommon. We were able to grow sales by 2.4 percent during the quarter as compared to fiscal 2014, but at a lower gross profit margin rate…”, Reece Kurtenbach, chairman, president and CEO of Daktronics Inc said in a statement.

Meanwhile, net sales, operating income, net income, and EPS for the nine months ended January 31, 2015, came in at $457.9 million, $24.3 million, $17.0 million, and $0.39 per diluted share, respectively, versus $415.7 million, $29.7 million, $20.4 million, and $0.47 per diluted share, respectively, for the same period in fiscal 2014.

On valuation measures, Daktronics Inc. shares, which currently have an average 3-month trading volume of 182,705 shares, trade at a trailing-12 P/E of 22.77, a forward P/E of 13.48 and a P/E to growth ratio of 1.04. The median Wall Street price target on the name is $16.00 with a high target of $16.00. Currently ticker boasts 2 ‘Buy’ endorsements, compared to 1 ’Hold’ and no ‘Sell’.

Profitability-wise, DAKT has a t-12 profit and operating margin of 3.58% and 6.21%, respectively. The $479.13 million market cap company reported $82.88 million in cash vs. $47.00K in debt in its most recent quarter.

DAKT currently prints a one year loss of about 6.30% and a year-to-date return of around 3.50%.

The chart below shows where the equity has traded over the last 52 weeks.

Daktronics Inc. designs and manufactures various electronic display systems and related products worldwide. The company was founded in 1968 and is based in Brookings, South Dakota.

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