NEW YORK (TheStreet) -- Shares of Daktronics (DAKT) - Get Report were surging 16.98% to $8.13 on heavy trading volume late-afternoon Tuesday as the Brookings, SD-based electronic display systems, digital messaging and software solutions company posted higher-than-expected 2017 first quarter results.
Before today's market open, Daktronics reported earnings of 13 cents per share, above analysts' projections of 5 cents per share. Revenue came in at $157.1 million, beating Wall Street's estimated $146.75 million in revenue.
For the 2016 first quarter, the company earned 9 cents per share on revenues of $150.22 million.
The company's backlog in the first quarter of 2017 was $197.9 million, compared to a backlog of $205.5 million in the 2016 first quarter.
"Operationally, we were able to deliver on more of the backlog coming into the year than expected which created an increase in sales and improved gross profit margin," said Daktronics' CEO Reece Kurtenbach in a statement.
Kurtenbach said the company has several projects in its pipeline, but has experienced some recent customer delays as a result of global macroeconomic uncertainty.
Daktronics provides large-scale video displays, scoreboards, digital billboards and other related products for sporting, commercial and transportation applications.
About 2.18 million of Daktronics' shares changed hands today vs. its average volume of 209,671 shares per day.
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. TheStreet Ratings has this to say about the recommendation:
We rate DAKTRONICS INC as a Hold with a ratings score of C. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. Among the primary strengths of the company is its solid financial position based on a variety of debt and liquidity measures that we have evaluated. At the same time, however, we also find weaknesses including deteriorating net income, disappointing return on equity and poor profit margins.
You can view the full analysis from the report here: DAKT