Group 1: Stock Recommendations - EnerSys (ENS) is highlighted as a strong investment opportunity with a Zacks Rank 1 and a 3.9% increase in the Zacks Consensus Estimate for current year earnings over the last 60 days [1] - Brinker International, Inc. (EAT) also carries a Zacks Rank 1, with an 8.4% increase in the Zacks Consensus Estimate for current year earnings over the last 60 days [4] - Daktronics, Inc. (DAKT) is noted for its Zacks Rank 1 and a significant 34.5% increase in the Zacks Consensus Estimate for current year earnings over the last 60 days [6] Group 2: Financial Metrics - EnerSys has a PEG ratio of 0.66, which is lower than the industry average of 1.42, and possesses a Growth Score of B [7] - Brinker has a PEG ratio of 0.87 compared to the industry average of 2.72, and also has a Growth Score of B [2] - Daktronics has a PEG ratio of 0.41, which is lower than the industry average of 0.53, and holds a Growth Score of B [3]

Daktronics, Inc. (DAKT) : This electronic display systems company carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 34.5% over the last 60 days. Macy's, Inc. (M) : This omni-channel retail major carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 8.6% over the last 60 days. EnerSys (ENS) : This stored energy solutions company carries a Zacks Rank #1, and has witnessed the Zacks Consens ...

Financial Data and Key Metrics Changes - For fiscal Q4 2024, sales volume reached $216 million, a 2.9% increase from $210 million in the previous year, with full-year sales growing by 8.5% [42][44] - Operating income increased over four times compared to fiscal 2023, with operating margin at 10.6% for fiscal 2024, up from 2.8% the previous year [14][18] - Gross margin as a percentage of net sales improved to 25.7% in Q4 2024 from 24.8% in Q4 2023, driven by strategic focus on profitable markets and manufacturing efficiencies [16][70] - Cash position at year-end was $81.7 million, significantly up from $24.7 million, attributed to strong cash flow generation and efficient working capital management [47] Business Line Data and Key Metrics Changes - Orders increased by 14.6%, primarily due to growth in Live Events and International business units, with a year-over-year order increase of $59 million or 8.7% [7][8] - The commercial business unit experienced softness in large projects, while the Live Events segment saw strong demand, particularly from college and university projects [44][48] - The Transportation segment focused on intelligent transportation systems and secured orders from various state departments and airlines [71] Market Data and Key Metrics Changes - International orders began to rebound, indicating a recovery in customer demand as economic conditions stabilize [7][36] - The company noted a significant increase in sales in the high school market, growing from $112 million in fiscal 2022 to $170 million in fiscal 2024, indicating a trend towards full video conversion [50] Company Strategy and Development Direction - The company is focused on digital transformation, enhancing internal systems, and modernizing field service systems to improve operational efficiency and customer service [24][52] - There is a commitment to improving return on capital and consistently earning returns above the cost of capital, with initiatives aimed at capturing growth in existing markets and developing new opportunities [25][54] - The company aims to leverage its technology leadership and U.S. base to differentiate itself from competitors, focusing on high-quality solutions and customer service [54][75] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the recovery of international markets and the potential for growth in military business due to differentiated product offerings [30][63] - The company anticipates continued strong demand in Live Events as venues enhance facilities to attract audiences [48] - Management acknowledged the challenges posed by economic and geopolitical uncertainties but noted signs of increasing customer interest and order conversion [58] Other Important Information - The company has made significant investments in operational improvements and capacity utilization, which have contributed to increased profitability and cash flow generation [41][67] - The company is actively developing its e-sales channel to simplify purchasing processes and expand market reach [22] Q&A Session Summary Question: Are recurring revenue opportunities being marketed to new and existing customers? - Management confirmed that services are marketed to both new and existing customers, with expectations for these services to become a meaningful part of the business over time [28] Question: What is the outlook for military business expansion? - Management indicated that military business is promising, with a differentiated product line and partnerships with AV system integrators to meet specific requirements [30] Question: What are the expectations for international market recovery? - Management expressed hope for continued improvement in international markets, with indications that order flow is becoming easier [36][63] Question: What is the impact of new Flip-Chip technology on revenue and margins? - Management highlighted excitement about the Flip-Chip technology, noting its potential for enhancing product offerings, though it is too early to predict its full impact on profitability [57] Question: Is the recurring revenue from services at a higher margin than overall revenue? - Management confirmed that recurring revenue is at a higher margin and contributes significantly to customer satisfaction, indicating potential for future growth [61]

Financial Performance Highlights - Fiscal Year 2024 demonstrates the increased power of a more profitable business model[4] - Orders increased by 8.7% year-to-date and 14.6% in Fiscal Quarter 4[5] - Working capital increased by 58.2% from $132495 thousand to $209654 thousand[9] - Operating cash flow increased fourfold from $15025 thousand to $63240 thousand[9] - Sales were up 8.5% for the year[51] Profitability and Margins - Gross margin increased by 90 basis points to 25.7% in Fiscal Quarter 4 2024[7] - Operating margin increased by 780 basis points to 10.6% in Fiscal Quarter 4 2024[19] Strategic Focus and Achievements - The company has overcome past years' operational challenges[22] - The company is positioned for durable revenue, earnings, and cash flow[12] - The company further aligned its supply chain for stronger on-time delivery[15] Segment Performance (Orders) - Live Events orders increased by 24% year-to-date and 44% in Fiscal Quarter 4[20] - Commercial orders decreased by 14% year-to-date and 12% in Fiscal Quarter 4[20] - High School Park and Recreation orders increased by 3% year-to-date but decreased by 6% in Fiscal Quarter 4[20] - Transportation orders increased by 20% year-to-date but decreased by 1% in Fiscal Quarter 4[20] - International orders increased by 7% year-to-date and 80% in Fiscal Quarter 4[20]

Order and backlog levels provide management and investors additional details surrounding the results of our business activities in the marketplace and highlight fluctuations caused by seasonality and multi-million dollar projects. Management uses orders to evaluate market share and performance in the competitive environment. Management uses backlog information for capacity and resource planning. Order fulfillment timing is dependent on customer schedules, supply chain conditions, and our capacity availabili ...

Kurtenbach added, "In fiscal 2024, we raised the baseline profitability of the business, strengthened our positioning with our customers, and reinforced our competitive differentiation, particularly against foreign competitors. Building upon these strengths, we are focused in fiscal 2025 on strategic priorities which will continue to transform and strengthen our business model to enhance our earnings power. These important drivers for our outlook are to prioritize among our end markets, attack structural co ...

Mr. Kurtenbach added, "Our orders grew 14.6 percent in the fourth quarter and 8.7 percent for the year, and we have entered fiscal 2025 committed to capture growing market demand, leveraging our recognized leadership position and our strong balance sheet." He continued, "Our critical priorities for fiscal 2025 are to execute a broad digital transformation to modernize our service systems for field service automation, to advance our enterprise performance planning capabilities, and to improve and automate qu ...

Financial Performance - Net sales for Q4 fiscal 2024 reached $215.9 million, a 2.9% increase compared to Q4 fiscal 2023; full-year sales were $818.1 million, an 8.5% increase from the prior year[13] - Gross margin for Q4 improved by 90 basis points to 25.7% from 24.8% in the previous year; full-year gross profit margin increased by 710 basis points to 27.2%, the highest since 2009[13] - Operating income for Q4 grew 6.4% to $19.4 million, while full-year operating income quadrupled to $87.1 million compared to fiscal 2023[13] - Net income for Q4 was $2.5 million, a decrease from $21.4 million in Q4 fiscal 2023; full-year net income was $34.6 million compared to $6.8 million in the previous year[13] - Adjusted operating income for the fourth quarter of fiscal 2024 was $19,427 million, up from $18,263 million in the same quarter of fiscal 2023, representing a year-over-year increase of 6.4%[32] - Gross profit as a percentage of net sales increased to 25.7% in Q4 fiscal 2024 from 24.8% in Q4 fiscal 2023, and for the full fiscal year, it rose to 27.2% from 20.1%[38] - The operating margin for Q4 fiscal 2024 was 9.0%, compared to 8.7% in Q4 fiscal 2023, while the full fiscal year operating margin improved to 10.6% from 2.8%[52] - Adjusted net income for the three months ended April 27, 2024, was $12,766 million, down from $25,872 million in the same period last year[59] Orders and Backlog - Product order backlog was $316.9 million as of April 27, 2024, down from $400.7 million at the end of Q4 fiscal 2023[13] - New product and service orders for Q4 were $205.8 million, a 14.6% increase from $179.5 million in the prior year; full-year orders increased by 8.7% to $740.2 million[13] - Orders for Q4 fiscal 2024 increased by 14.6% compared to Q4 fiscal 2023, with full fiscal year orders up 8.7% driven by strong demand in Live Events and Transportation business units[51] - The Commercial segment's orders decreased by 12.4% to $34,084 million compared to $38,902 million in the prior year[57] Revenue by Segment - Live Events segment saw a revenue increase of 14.6%, reaching $104,906 million compared to $91,530 million in the prior year[57] - The International segment experienced a significant decline of 45.1%, with revenues dropping to $11,394 million from $20,744 million[57] - The Transportation segment reported a revenue increase of 30.6%, reaching $24,173 million from $18,509 million year-over-year[57] Expenses and Cash Flow - Operating expenses for Q4 were $36.0 million, a 6.1% increase from $33.9 million in Q4 fiscal 2023; full-year operating expenses rose to $135.3 million from $130.0 million[16] - Cash, restricted cash, and marketable securities totaled $81.7 million as of April 27, 2024, with long-term debt outstanding at $54.7 million[40] - The company generated $63.2 million from operations in fiscal 2024, significantly up from $15.0 million in fiscal 2023[44] - Total current liabilities decreased to $192,296 million from $210,163 million year-over-year[56] - Long-term debt, net, increased significantly to $53,164 million from $17,750 million in the previous year[60] - Free cash flow is emphasized as a key measure of operating performance, providing useful information for investors[58] Strategic Initiatives - The company launched a new Flip-Chip COB LED display family to enhance its product offerings in the growing narrow-pixel pitch market[2] - Daktronics aims to improve operational effectiveness by enhancing manufacturing utilization and aligning production schedules to lower overall costs[2] - The company is focused on strategic priorities for fiscal 2025 to enhance earnings power and improve its operating model[14] - The company plans to focus on digital transformation initiatives to modernize service systems and improve operational efficiency in fiscal 2025[50] - Management's strategy includes reallocating resources towards markets that generate returns significantly above the cost of capital[37] Tax and Valuation - The effective tax rate for fiscal 2024 was 35.9%, a decrease from 48.7% in fiscal 2023, primarily due to non-deductible expenses and valuation allowances[53] - The company reported a change in fair value of convertible notes amounting to $16,550 million, impacting long-term debt calculations[60] - Inventory levels decreased by 7.7% since the end of fiscal 2023, indicating improved inventory management[40]

Cautionary Notice: In addition to statements of historical fact, this news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and is intended to enjoy the protection of that Act. These forward-looking statements reflect the Company's expectations or beliefs concerning future events. The Company cautions that these and similar statements involve risk and uncertainties which could cause actual results to differ materially from our expectation ...

Core Points - Daktronics Inc will release its fourth quarter fiscal 2024 financial results on June 26, 2024, before the market opens [1] - A conference call and webcast will be hosted on the same day at 10:00 AM CT for interested parties [1][6] - Participants must pre-register to access the earnings call, receiving dial-in information and a PIN [2][7] Company Overview - Daktronics is the world's largest supplier of large-screen video displays, electronic scoreboards, and related control systems [8] - The company operates in four domestic business units: Live Events, Commercial, High School Park and Recreation, and Transportation, along with one International business unit [8] - Daktronics designs, manufactures, markets, and services display systems globally [8]