NASDAQ$DAKT

Daktronics Inc · Q1 2023 earnings

Q1 2023 earnings · · Investor relations

Briefing

Daktronics' Q1 2023 financial performance reflected strong sales growth but was impacted by supply chain challenges and inflationary pressures.

Daktronics reported a 18.8% increase in net sales, reaching $171.9 million, driven by increased conversion of backlog to sales. However, the company faced an operating loss of $5.5 million due to inflation and supply chain challenges. Orders remained strong at $170.2 million, although they decreased by 6.3% compared to the previous year's record level.

  • Net sales reached $171.9 million, the highest quarterly conversion rate since the pandemic began.
  • Operating loss of $5.5 million was attributed to inflation and supply chain challenges.
  • Orders totaled $170.2 million, driven by increased activity in the Commercial market.
  • Product order backlog remained at a historically high level of $469.1 million.

Headline financials

Total Revenue

$172M

Previous: $145M+18.8%
EPS (adj)

-$0.12

Previous: $0.08-250.0%
Order Backlog

$469M

Previous: $285M+64.6%
Gross Margin

15.0%

Previous: 22.2%-32.4%
Operating Margin

-3.2%

Previous: 3.9%-182.1%
Capital Expenditures

-$10.7M

Previous: -$1.28M-730.5%
Free Cash Flow

-$33.5M

Previous: -$2.3M-1354.0%
Net Income

-$5.33M

Previous: $3.69M-244.5%
Operating Income

-$5.52M

Previous: $5.66M-197.5%
Gross Profit

$25.8M

Previous: $32.2M-19.9%
Cash & Equivalents

$8.28M

Previous: $77.2M-89.3%
Total Assets

$473M

Previous: $396M+19.4%
Stock-Based Comp

$511K

Previous: $518K-1.4%

Revenue & EPS history

Daktronics · Revenue · Quarterly

$172M

Q1 2023+18.8%vs Q1 2022
Beat estimate in 12 of 16 quarters(75%)
ActualEstimate

Revenue by segment

Daktronics · $172M total across 5 segments · Q1 2023

  • Live Events
    $56.4M
  • Commercial
    $40.1M
  • High School Park and Recreation
    $35.8M
  • International
    $20.1M
  • Transportation
    $19.5M

Forward guidance

Daktronics anticipates a dynamic and volatile supply chain and tight labor market to persist throughout the fiscal year, constraining capacity and efficiency. The company is aligning orders to capacity, adjusting production schedules, inventory levels, pricing, and capital investments to increase capacity and predictability. Strategic investments in new technologies, resilient supply chains, and key markets are expected to position the company for long-term growth.

Tailwinds

  • Markets continue to be active and show growing demand.
  • Order bookings in the first quarter were strong for shopping centers, casinos, and out-of-home advertising display systems in the Commercial business and in multiple sports venues in Live Events.
  • Carefully aligning orders to our capacity to best serve our customers and improve profitability.
  • Strategically invest in new technologies and solutions.
  • Serving our existing customers and growing key markets.

Headwinds

  • A dynamic and volatile supply chain and tight labor market to persist throughout this fiscal year.
  • Capacity was constrained due to significant and unusual part shortages.
  • Challenging labor environment.
  • Operating disruptions from COVID-19 related absences.
  • Shutdown of our facilities in Shanghai, China due to a government mandated COVID-19 zero tolerance policy.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q1 2023

Historical avgQ1 2023

-1.0%

Avg return

Earnings day

+1.1%

Avg return

5 days after

+1.5%

Avg return

30 days after

40%

26 / 65 earnings

Positive

+30.3%

Q1 2017

Best reaction

-25.8%

Q1 2016

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q4 2026
Q3 2026-11.4%-15.7%-20.9%
Q2 2026+15.9%+6.3%+15.7%
Q1 2026+20.0%+37.9%+9.9%
Q4 2025+1.1%-3.0%+16.3%
Q3 2025-14.9%-16.6%-19.0%
Q2 2025+17.6%+11.9%+3.1%
Q1 2025-13.3%-12.8%-3.4%
Q4 2024+23.4%+26.1%+39.7%
Q3 2024+6.8%+8.1%+22.5%
Q2 2024-16.5%-17.8%-22.4%
Q1 2024+7.4%+17.5%+9.3%
Q4 2023+11.3%+9.8%+30.1%
Q3 2023+11.7%+13.5%+33.0%
Q2 2023+15.7%+28.3%+58.1%
Q1 2023-22.9%-25.3%-34.1%
Q4 2022-4.8%-13.6%-14.7%
Q3 2022-7.5%-12.9%-16.0%
Q2 2022-2.9%-1.6%+3.5%
Q1 2022-7.1%-7.6%-9.2%
Q4 2021+1.0%+0.0%-8.2%
Q3 2021+3.0%+14.4%+11.8%
Q2 2021-1.8%-0.2%+2.6%
Q1 2021+11.5%+15.7%+3.9%
Q4 2020-8.7%-5.0%-13.9%
Q3 2020-10.4%-6.1%-21.8%
Q2 2020-10.4%-12.4%-12.6%
Q1 2020+22.3%+21.9%+27.3%
Q4 2019-6.1%-12.0%-14.8%
Q3 2019-1.8%-2.1%-10.4%
Q2 2019+15.2%+14.5%-3.4%
Q1 2019-14.1%-17.6%-12.2%
Q4 2018-20.3%-20.2%-15.3%
Q3 2018-4.3%-4.2%-5.3%
Q2 2018-5.7%-4.4%-7.1%
Q1 2018+0.7%+0.6%+9.9%
Q4 2017+4.7%+5.1%+3.8%
Q3 2017-6.0%-3.9%-9.5%
Q2 2017+10.8%+13.1%+10.6%
Q1 2017+30.3%+37.4%+42.7%
Q4 2016-22.0%-23.3%-20.5%
Q3 2016-17.9%
Q2 2016-14.9%
Q1 2016-25.8%
Q4 2015+5.2%
Q3 2015-15.0%
Q2 2015-11.5%
Q1 2015+8.2%
Q4 2014-11.3%
Q3 2014-1.6%
Q2 2014+11.8%
Q1 2014+1.3%
Q4 2013-7.3%
Q3 2013-14.3%
Q2 2013+17.4%
Q1 2013+18.5%
Q4 2010-0.3%
Q4 2012-0.3%
Q3 2011-5.2%
Q3 2012-5.2%
Q2 2012+7.8%
Q1 2012-4.7%
Q2 2011-4.7%
Q4 2011-4.7%
Q1 2011-4.7%
Q3 2010-3.3%

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