NASDAQ$DAKT

Daktronics Inc · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Daktronics' financial performance improved due to strategic pricing, supply chain improvements, and expense management.

Daktronics reported a strong third quarter with record net sales, improved gross profit margins, and operating income, driven by strategic pricing increases, supply chain improvements, and expense management.

  • Record third quarter net sales increased by 32.5% compared to the previous year.
  • Product order backlog reached $429.1 million, up from $353.3 million in the year-earlier period.
  • Gross profit margin improved from 16.0% to 22.6% compared to the prior year.
  • Operating income was $7.1 million, a significant improvement from the adjusted operating loss in the third quarter of fiscal 2022.

Headline financials

Total Revenue

$185M

Previous: $140M+32.5%
EPS (adj)

$0.15

Previous: -$0.10+250.0%
Order Backlog

$429M

Previous: $353M+21.6%
Gross Margin

22.6%

No prior period
Capital Expenditures

-$21.8M

Previous: -$10M-117.6%
Free Cash Flow

-$31.3M

Previous: -$35.5M+11.8%
Net Income

$3.71M

Previous: -$4.35M+185.4%
Operating Income

$7.12M

Previous: -$5.68M+225.3%
Gross Profit

$41.7M

Previous: $22.3M+87.0%
Cash & Equivalents

$10M

Previous: $35.8M-72.0%
Total Assets

$454M

Previous: $415M+9.3%
Stock-Based Comp

$502K

Previous: $491K+2.2%

Revenue & EPS history

Daktronics · Revenue · Quarterly

$185M

Q3 2023+32.5%vs Q3 2022
Beat estimate in 12 of 16 quarters(75%)
ActualEstimate

Revenue by segment

Daktronics · $185M total across 5 segments · Q3 2023

  • Live Events
    $67.7M
  • Commercial
    $50M
  • High School Park and Recreation
    $28.3M
  • International
    $21.4M
  • Transportation
    $17.6M

Forward guidance

Daktronics expects long-term market growth, increased production capacity, and stability of operations to efficiently convert backlog to sales. The company is monitoring production capabilities, inflation, and supply conditions to adjust resources and product pricing to expand margins and increase profitability.

Tailwinds

  • Increased production capacity
  • Factory automation investments
  • Expanded labor availability
  • Reduced supply chain disruptions
  • Initiatives to reduce inventory levels

Headwinds

  • Production capabilities
  • Inflation's impact on material prices and labor
  • Supply conditions in the ever-evolving geopolitical and global economic environment
  • Ability to quickly adjust resources
  • Ability to adjust product pricing

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 2023

Historical avgQ3 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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