Financial Data and Key Metrics Changes - The company reported a revenue of $226 million for Q1 2025, representing a 4.7% growth from the previous quarter but a decline from the record quarter of the previous year [14][15] - Gross margin increased sequentially to 26.4%, reflecting strong financial returns driven by volume mix and some price improvement [15] - Operating cash flow was reported at $19.5 million, showcasing a strong performance compared to the previous year [5][16] Business Line Data and Key Metrics Changes - In the Live Events segment, revenue was recognized from several large college projects, indicating strong demand in this area [6][7] - The commercial business saw an increase in orders, particularly from independent billboard operators, reflecting a rebound in demand [8][9] - The High Schools segment experienced order successes as the market shifts towards full video usage, with the introduction of a new higher-margin product [11] Market Data and Key Metrics Changes - International sales increased by 20% sequentially, driven by bookings for digital billboard rollouts, although overall international performance remains slow due to economic uncertainties [10] - The transportation segment saw growth in orders, particularly for intelligent transportation systems and airport projects [9] Company Strategy and Development Direction - The company is focused on digital transformation, improving cost structures, and expanding market share, with specific milestones planned for fiscal 2025 and 2026 [18][20] - Investments are being made in foundational enterprise performance management tools to enhance operational efficiencies and customer experiences [18][19] - The company aims to capture a greater share of its serviceable available market (SAM) through advancements in control system capabilities and professional services [20][22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the operating environment, citing stable supply chain reliability and good momentum entering Q2 [5][6] - The outlook for Live Events demand remains strong, with expectations for continued growth as venues enhance facilities [7] - Management acknowledged the competitive environment but emphasized the company's strong value proposition and service capabilities [28] Other Important Information - The backlog at the end of the quarter was $267 million, reflecting year-over-year order growth and a return to more normal seasonal trends [6][14] - The company has a strong balance sheet with cash, restricted cash, and marketable securities totaling $97.2 million [16] Q&A Session Summary Question: Can you talk about the backlog and when it might normalize? - Management expects the backlog to reflect more seasonal cycles, with Q1 and Q2 being higher sales months and a trend down in summer months [24][25] Question: Was any revenue in Q1 pulled in from Q2? - Management indicated that there was no unusual movement of revenue from Q2 into Q1 [26] Question: Is there room to expand the targeted operating margin? - Management believes there is room for both top-line and operating margin growth [27] Question: How is the competitive environment affecting market share? - Management noted that while data on market share is hard to come by, they focus on customers who value their offerings rather than those primarily driven by price [29][30] Question: What is the company's credit position? - Management confirmed a strong balance sheet with high levels of cash and no reliance on credit lines [31][32]

| --- | --- | --- | --- | --- | --- | |-------|-------|-------|----------------------------------------------------------|-------|-------| | | | | | | | | | | | DYNAMIC MESSAGE SIGNS | | | | | | | | | | | | | | Fiscal First Quarter 2025 Results Call September 4, 2024 | | DAKT | | | | | NASDAQ: | | | | | | | CONTROL SYSTEMS | | | | | | | | | | SAFE HARBOR STATEMENT In addition to statements of historical fact, this presentation contains forward-looking statements within the meaning of the Private Securities ...

Daktronics (DAKT) came out with quarterly earnings of $0.36 per share, beating the Zacks Consensus Estimate of $0.30 per share. This compares to earnings of $0.63 per share a year ago. These figures are adjusted for nonrecurring items. This quarterly report represents an earnings surprise of 20%. A quarter ago, it was expected that this video display maker would post earnings of $0.14 per share when it actually produced earnings of $0.27, delivering a surprise of 92.86%. Over the last four quarters, the com ...

Core Insights - Daktronics, Inc. reported solid sequential revenue growth, margin expansion, and cash flow generation in its fiscal Q1 2025, with operating income of $22.7 million and adjusted net income of $16.6 million [1][2][3] Financial Performance - Sales reached $226.1 million, a 4.7% sequential increase from Q4 2024, driven by increased production and deliveries for sports and outdoor-related seasonal business [2][6] - Gross profit margin improved to 26.4% from 25.7% in Q4 2024, although it decreased from 30.6% in Q1 2024 due to record sales activity in the prior year [2][7] - Operating income increased by 16.9% to $22.7 million compared to $19.4 million in Q4 2024 [2][14] - The product order backlog was $267.2 million, down from $316.9 million at the end of Q4 2024, reflecting a reduction in manufacturing lead times [2][5] Orders and Market Dynamics - Product and service orders totaled $176.2 million, a decrease of 14.4% from Q4 2024 but an increase of 11.1% compared to Q1 2024 [2][5] - Orders for the first quarter increased by 11.1% year-over-year, driven by demand in the On-Premise, Spectacular, and Out-of-Home markets [5][6] Strategic Initiatives - The company is focused on digital transformation, product innovation, and market penetration, with plans to upgrade service and systems maintenance solutions by fiscal year-end [3][4] - Upcoming enhancements to the Show Control solution aim to improve live entertainment experiences and workflow efficiencies [3] Cash Flow and Balance Sheet - Daktronics generated $19.5 million in cash from operations and had a working capital ratio of 2.2 to 1 at the end of Q1 2025 [12][21] - Cash, restricted cash, and marketable securities totaled $97.2 million, with total debt of $76.0 million outstanding [12][17] Outlook - The company anticipates higher orders in fiscal 2025, with expectations of continued seasonal normalization and strong demand across various business units [4][5]

Daktronics (DAKT) shares have jumped 81% year to date (YTD), outperforming the Zacks Computer & Technology sector's gain of 21.3% and the Zacks Electronics- Miscellaneous Products industry's return of 15.7%. It has outperformed industry peers like Carrier Global (CARR) , Garmin (GRMN) and SES AI (SES) over the same timeframe. CARR and GRMN shares have gained 24.9% and 40.6%, respectively. SES shares have declined 42% YTD. The outperformance in Daktronics shares can be attributed to strong top-line growth in ...

Group 1: Pilgrim's Pride (PPC) - Pilgrim's Pride is engaged in the processing, production, marketing, and distribution of frozen, fresh, and value-added chicken products [1] - The company has a Zacks Rank of 1 (Strong Buy) [1] - The Zacks Consensus Estimate for its current year earnings has increased by 12.7% over the last 60 days [1] - Pilgrim's Pride has a PEG ratio of 0.22 compared to 0.49 for the industry [2] - The company possesses a Growth Score of A [2] Group 2: KT (KT) - KT provides mobile telecommunications services, telephone services, fixed-line, and VoIP telephone services [2] - The company has a Zacks Rank of 1 (Strong Buy) [2] - The Zacks Consensus Estimate for its current year earnings has increased by 3.9% over the last 60 days [2] - KT has a PEG ratio of 0.72 compared to 1.04 for the industry [2] - The company possesses a Growth Score of B [2] Group 3: Daktronics (DAKT) - Daktronics is one of the world's largest suppliers of electronic scoreboards, computer-programmable displays, and large screen video displays and control systems [3] - The company has a Zacks Rank of 1 (Strong Buy) [3] - The Zacks Consensus Estimate for its current year earnings has increased by 34.5% over the last 60 days [3] - Daktronics has a PEG ratio of 0.47 compared to 0.92 for the industry [4] - The company possesses a Growth Score of B [4]

Investors interested in stocks from the Electronics - Miscellaneous Products sector have probably already heard of Daktronics (DAKT) and KLA (KLAC) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look. Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The proven Zacks Rank puts an emphasis on earn ...

Group 1 - Daktronics (DAKT) is a notable stock in the Computer and Technology sector, currently outperforming the sector with a year-to-date return of approximately 78.4% compared to the sector average of 21.5% [4] - The Zacks Rank for Daktronics is 1 (Strong Buy), indicating a positive earnings outlook and strong analyst sentiment, with a 34.5% increase in the consensus estimate for full-year earnings over the past three months [3][4] - Daktronics belongs to the Electronics - Miscellaneous Products industry, which has gained an average of 15% this year, further highlighting its strong performance relative to the industry [6] Group 2 - Fabrinet (FN) is another stock in the Computer and Technology sector that has outperformed, with a year-to-date increase of 37.6% and a Zacks Rank of 2 (Buy) [5] - The Electronics - Miscellaneous Components industry, where Fabrinet is categorized, has seen a 6.5% increase since the beginning of the year, indicating a relatively weaker performance compared to Daktronics' industry [6] - Investors are encouraged to monitor both Daktronics and Fabrinet for potential continued strong performance in the sector [7]

Core Insights - Daktronics, Inc. will release its first quarter fiscal 2025 financial results on September 4, 2024, before market opens [1] - A conference call will be hosted by CEO Reece A. Kurtenbach and CFO Sheila M. Anderson at 10:00 AM CT on the same day [2] Company Overview - Daktronics is the world's largest supplier of large-screen video displays, electronic scoreboards, LED text and graphics displays, and related control systems [4] - The company operates in four domestic business units: Live Events, Commercial, High School Park and Recreation, and Transportation, along with one International business unit [4]

Core Insights - The article emphasizes the effectiveness of value investing as a strategy that consistently performs well across various market conditions [2] - Daktronics (DAKT) is highlighted as a strong value stock, currently rated as a 1 (Strong Buy) by Zacks, with a Value grade of A [4][6] Company Analysis - Daktronics has a P/E ratio of 12.29, significantly lower than the industry average of 26.14, indicating potential undervaluation [4] - The stock's Forward P/E has fluctuated between 8.60 and 15.80 over the past year, with a median of 12.58, suggesting stability in earnings expectations [4] - The P/S ratio for Daktronics stands at 0.85, compared to the industry average of 0.93, further supporting the notion of undervaluation [5] Investment Outlook - The combination of Daktronics' strong earnings outlook and favorable valuation metrics positions it as an attractive investment opportunity for value investors [6]