Daktronics Exceeds Q1 Estimates with Strong Earnings Growth
Daktronics Exceeds Q1 Earnings Expectations
Daktronics (NASDAQ: DAKT) reported impressive quarterly earnings of $0.36 per share, surpassing the Zacks Consensus Estimate of $0.30 per share. This marks a decrease compared to earnings of $0.63 per share from the previous year, but remains a positive indicator of the company's performance.
Upon analyzing their quarterly results, it becomes clear that Daktronics achieved an earnings surprise of 20%. In the prior quarter, expectations suggested the company would produce earnings of $0.14 per share; however, it delivered earnings of $0.27 instead, creating a notable surprise of 92.86%.
Over the past year, Daktronics has managed to beat consensus EPS estimates two out of four times, which is a trend that can instill confidence among investors.
For the quarter ending in July 2024, Daktronics reported revenues of $226.09 million, exceeding the expectations set by the Zacks Consensus Estimate by 4.27%. In comparison, the prior year’s revenues were $232.53 million. This is yet another highlight, as the company has consistently topped revenue estimates, doing so two times in the last four quarters.
Moving forward, the immediate price movement of Daktronics shares will largely hinge on commentary from management during the upcoming earnings call. Investor reactions often align closely with insights into future earnings expectations.
Since the beginning of the year, Daktronics shares have surged approximately 60.5%, significantly outperforming the S&P 500's gain of 15.9%.
Future Outlook for Daktronics
The strong performance so far this year prompts the natural question for investors: what lies ahead for Daktronics?
While there are no straightforward answers, one of the most reliable indicators is the company's earnings outlook. This includes not only current consensus expectations for upcoming quarters but also recent trends in these estimates.
Research emphasizes a correlation between short-term stock movements and changes in earnings estimates. Investors can track these revisions or utilize established tools like the Zacks Rank, which has a robust history in evaluating earnings estimate trends.
As the latest earnings report has been released, the estimate revisions at Daktronics have shown mixed results. Although the direction and magnitude of these changes may shift following the earnings release, the current status indicates a Zacks Rank of #3 (Hold) for Daktronics shares, suggesting that they are set to perform in line with the market in the near future.
Investors will be keen to see how estimates for the upcoming quarters and the current fiscal year evolve shortly. Currently, the consensus EPS estimate stands at $0.30 with projected revenues of $218.94 million for the next quarter and $1.13 on estimated revenues of $839.52 million for the entire fiscal year.
It's also essential for investors to consider the broader industry outlook, as it can substantially influence stock performance. Presently, the Electronics - Miscellaneous Products industry ranks in the lowest 29% among more than 250 Zacks industries, indicating potential challenges ahead. Historically, the top half of Zacks-ranked industries have outperformed the bottom half by a margin greater than 2-to-1.
Another player in the same industry, Flux Power Holdings, Inc. (NASDAQ: FLUX), is still awaiting results from its quarter that ended in June 2024. Expectations indicate that Flux Power is likely to report a loss of $0.14 per share, a year-over-year decline of -55.6%. The forecasted revenues for this company are approximately $14.31 million, reflecting a decrease of 12% compared to the same quarter last year.
Frequently Asked Questions
What earnings did Daktronics report for the last quarter?
Daktronics reported quarterly earnings of $0.36 per share, surpassing estimates.
How did Daktronics revenues compare to last year's?
The company posted revenues of $226.09 million, down from $232.53 million a year ago.
What is the current Zacks Rank for Daktronics?
Daktronics holds a Zacks Rank of #3 (Hold), indicating expected performance in line with the market.
What has been the stock performance of Daktronics this year?
Since the start of the year, Daktronics shares have increased by approximately 60.5%.
What is the industry outlook for Daktronics?
The Electronics - Miscellaneous Products industry is currently in the bottom 29% of Zacks ranked industries, indicating potential challenges ahead.
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