Stock Market Watch

Daktronics – Underperformance was due to one-time costs

by ·




Daktronics, Inc. (NASDAQ:DAKT). Last Market Price: 9.06, Change: -0.43, % Change: (-4.53%). Shares trade in the range of 9.00 – 9.38 dollars. It has a market capitalization of 378.03M dollars, making it a Small Cap Stock and has 41.73M outstanding shares. The company has a beta of 1.44, indicating, the stock to be more volatile than the market. As per the most recent quarterly report, the net income per share (EPS) is 0.36; P/E of 24.99 indicating, the stock to be overvalued or expected increase in company earnings. It operates in Technology sector and belongs to Electronic Instr. and Controls industry. Percentage shares held by institutional investors is 47%. The company has a 52 week Price range (low – high) of $ 8.00 – 17.30. Average volumes of shares traded daily are 108,168. Volume traded in the last session was at 33,809, 0.31 times the average volume.

  • Reports Q2 (Oct)
    • EPS of $0.09 , worse than the estimates
    • Revenues rose 7.1% year on year to $135.9 million
  • Company issues upside guidance for Q3, sees Q3 revs approaching $118.7 mln
  • States: Given the positive top line performance, we were disappointed in the gross margin performance. The good news in this regard is that much of the underperformance was due to one-time costs. These one-time costs included adjustments to reserves for preexisting warranty claims, increased cost estimates on an international project, and new product introduction costs. The impact of these and other one-time items reduced our gross profit percentage by more than two percentage points. We were pleased to see growth in our backlog as we enter what is typically the slowest quarter of our fiscal year. With the strong backlog and despite the fact we have fewer work days in the quarter with the holidays, we could see net sales in the third quarter approaching to the level of the first quarter of fiscal 2012. Taking into account the non-recurring items for this quarter, we also expect that gross profit margins will improve in the third quarter of fiscal 2012.

For Q3 (Jul ’11), It had a Net profit margin of 2.84%, an Operating margin of 4.31%. Other Key stats and ratios are : Return on average assets of 4.11%, Return on average equity of 6.64%. The organization has an employee strength of 2,100

Consensus Recommendation is a Outperform.


Estimate for sales for the Year Ending Apr-11 show a mean of 433.54 million dollars, an estimate high of 435.29 million dollars and an estimate low of 432.29 million dollars.

Estimate for sales for the Year Ending Apr-12 show a mean of 479.20 million dollars, an estimate high of 486.70 million dollars and an estimate low of 469.70 million dollars. A year ago the figures stood at 444.63 million dollars.

Estimate for EPS for the Year Ending Apr-11 show a mean of 0.32 dollars, an estimate high of 0.32 dollars and an estimate low of 0.31 dollars.

Estimate for EPS for the Year Ending Apr-12 show a mean of 0.39 dollars, an estimate high of 0.45 dollars and an estimate low of 0.34 dollars. A year ago the figures stood at 0.38 dollars.

Sales for Quarter Ending Jul-11 was estimated at 119.75 million dollars, however the actual sales figure stood at 118.70 million dollars, 1.05 million dollars less than estimates.

Sales for Quarter Ending Apr-11 was estimated at 106.25 million dollars, however the actual sales figure stood at 114.39 million dollars, 8.14 million dollars more than estimates.

More Posts by this author

edliston
Post Written By: Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.


Tags:

Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing.

You may also like...