Skip to main content

Digital-Displays Firm Daktronics Stock Rises After Jump in Revenue

Quarterly revenue at Daktronics rose 29% to $164.5 million led by more orders in commercial and high school parks and recreation.

Shares of Daktronics  (DAKT) - Get Daktronics, Inc. Report were higher after the digital-displays producer reported a 29% jump in fiscal-second-quarter revenue and a 30% drop in earnings.

Net income for the quarter ended Oct. 30 fell to $2.4 million, or 5 cents a share, from $3.4 million, or 8 cents a share, in the year-earlier period.

Revenue reached $164.5 million from $127.3 million a year earlier.

Daktronics designs and produces electronic scoreboards, programmable display systems and large screen video displays for sporting, commercial and transportation applications.

Shares of the Brookings, S.D., company at last check rose 2.5% to $4.99.

TheStreet Recommends

"Market demand continued to return to prepandemic levels and our order bookings grew through the first half of the year," Chairman, President and Chief Executive Reece Kurtenbach said in a statement. 

Second-quarter orders of $163.7 million grew 21% year-over-year, as pandemic restrictions eased, with higher orders in commercial and high school parks and recreation, the company said.

"Our operating expenses have increased as we adjust our capacity to support increased demand levels and convert our record high backlog to sales," Kurtenbach added. 

"At the same time, material, labor, and freight availability constraints are creating headwinds in lead times and are causing inflationary cost pressures.

"We expect dynamic supply chain conditions to persist through next calendar year. As we continue to work through supply chain challenges, inflationary pressures, and evolving pandemic impacts, we expect volatility in our pricing, order and revenue cycles, and production costs in the near term. 

"Over the long-term, we believe the fundamentals of the audiovisual industry are strong and are poised for continued growth."