NASDAQ$DAKT

Daktronics Inc · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Daktronics reported an increase in net sales and orders for the second quarter of fiscal year 2023, but experienced a net loss due to a non-cash deferred tax asset valuation adjustment.

Daktronics announced its Q2 2023 results, which showed a 14% increase in net sales to $187.4 million and an 11.7% increase in orders to $182.8 million compared to Q2 2022. However, the company reported a net loss due to a $13.0 million non-cash deferred tax asset valuation adjustment. The company is focusing on improving liquidity and cash generation.

  • Net sales increased by 14.0% to $187.4 million compared to the second quarter of fiscal 2022.
  • Orders increased by 11.7% to $182.8 million compared to the second quarter of fiscal 2022.
  • Product order backlog remains at historically high levels of $463.1 million.
  • Operating income was $1.5 million, but a net loss was incurred due to a $13.0 million non-cash deferred tax asset valuation adjustment.

Headline financials

Total Revenue

$187M

Previous: $164M+14.0%
EPS (adj)

-$0.29

Previous: $0.05-680.0%
Order Backlog

$463M

Previous: $282M+64.2%
Gross Margin

16.9%

Previous: 19.6%-13.8%
Operating Margin

0.8%

Previous: 2.7%-70.4%
Capital Expenditures

-$16.2M

Previous: -$4.51M-260.3%
Free Cash Flow

-$38.2M

Previous: -$13M-192.7%
Net Income

-$13M

Previous: $2.37M-646.9%
Operating Income

$1.53M

Previous: $4.39M-65.2%
Gross Profit

$31.7M

Previous: $32.3M-1.7%
Cash & Equivalents

$6.43M

Previous: $61.6M-89.6%
Total Assets

$464M

Previous: $418M+11.0%
Stock-Based Comp

$474K

Previous: $494K-4.0%

Revenue & EPS history

Daktronics · Revenue · Quarterly

$187M

Q2 2023+14%vs Q2 2022
Beat estimate in 12 of 16 quarters(75%)
ActualEstimate

Revenue by segment

Daktronics · $187M total across 5 segments · Q2 2023

  • Live Events
    $69.2M
  • High School Park and Recreation
    $42M
  • Commercial
    $37M
  • International
    $22.5M
  • Transportation
    $16.7M

Forward guidance

Daktronics is focused on improving cash flow and enhancing liquidity. The company expects inventory levels to peak in the third quarter and begin to decline. They are pursuing avenues to strengthen their financing flexibility by adding liquidity and diversifying funding sources.

Tailwinds

  • Cash generation focus through proactively completing and fulfilling orders in backlog.
  • Productivity improvements from previous investments in factory capacity expansion and capital equipment.
  • Operating margin improvement through pricing actions, product mix adjustments, and prudent management of operating expenses.
  • Re-engineering designs for supply chain resiliency.
  • Normalizing inventory levels as supply chain challenges continue to ease.

Headwinds

  • Supply chain disruptions have started to ease.
  • The company experienced significant and unusual part shortages.
  • The company experienced a challenging labor environment.
  • The company experienced operating disruptions from COVID-19 related absences.
  • The company experienced a first quarter COVID-19 mandated shutdown of Shanghai production facilities.

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 Q2 2023

Historical avgQ2 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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