NASDAQ$DAKT

Daktronics Inc · Q3 2020 earnings

Q3 2020 earnings · · Investor relations

Briefing

Daktronics reported a net sales increase of 10.9% compared to the same quarter last year, but experienced a decline in profitability due to project cost overruns and changes in project mix.

Daktronics reported Q3 fiscal year 2020 results with increased net sales but decreased profitability. Net sales increased by 10.9% to $127.7 million, while the company faced an operating loss of $9.2 million and a net loss of $12.7 million, or $0.28 per diluted share.

  • Net sales increased by 10.9% to $127.7 million compared to Q3 2019.
  • The company experienced an operating loss of $9.2 million and a net loss of $12.7 million, or $0.28 per diluted share.
  • Orders remained relatively flat at $135.0 million compared to $135.4 million in Q3 2019.
  • Product order backlog at the end of Q3 2020 was $187 million, up from $168 million a year earlier.

Headline financials

Total Revenue

$128M

Previous: $115M+10.9%
EPS (adj)

-$0.28

Previous: -$0.07-300.0%
Order Backlog

$187M

Previous: $168M+11.3%
Gross Margin

19.2%

Previous: 21.6%-11.1%
Operating Margin

-7.2%

Previous: -6.5%-10.8%
Capital Expenditures

-$13.6M

Previous: -$14.1M+3.1%
Free Cash Flow

-$7.46M

Previous: $18.1M-141.2%
Net Income

-$12.7M

Previous: -$3.32M-283.7%
Operating Income

-$9.15M

Previous: -$7.52M-21.7%
Gross Profit

$24.5M

Previous: $24.9M-1.6%
Cash & Equivalents

$40.3M

Previous: $33.3M+21.1%
Total Assets

$359M

Previous: $359M-0.0%
Stock-Based Comp

$550K

Previous: $604K-8.9%

Revenue & EPS history

Daktronics · Revenue · Quarterly

$128M

Q3 2020+10.9%vs Q3 2019
Beat estimate in 11 of 16 quarters(69%)
ActualEstimate

Revenue by segment

Daktronics · $128M total across 5 segments · Q3 2020

  • Live Events
    $40.6M+35.3%
  • Commercial
    $36.9M-0.8%
  • International
    $21.5M+21.4%
  • High School Park and Recreation
    $14.8M-0.2%
  • Transportation
    $13.9M-9.6%

Forward guidance

Daktronics anticipates growth opportunities but faces near-term uncertainties due to the coronavirus situation, which may impact order timing and supply chains.

Tailwinds

  • Sales opportunities in the marketplace are growing.
  • Active project bids have increased this year compared to last year in all business units.
  • The dynamic audio-visual communication systems market is expected to grow over the long-term.
  • Growth is seen in current markets, with access to new markets through increased capabilities of NPP displays.
  • The company continues to invest in new technologies and market development.

Headwinds

  • Orders and sales timing may be impacted by the coronavirus situation (COVID-19).
  • Potential customer order delays due to COVID-19.
  • Potential supply chain disruptions due to COVID-19.
  • Fixed ongoing costs need to be covered.
  • Strategic investments are required.

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 Q3 2020

Historical avgQ3 2020

-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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