Why Daktronics (DAKT) Stock Is Plummeting Today

NEW YORK (TheStreet) -- Daktronics (DAKT) stock plummeted on Wednesday after the company reported revenue and earnings in its year-ending quarter below analysts' estimates. 

Over the three months to April, the supplier of display screens earned 4 cents a share, a dime below what analysts surveyed by Thomson Reuters expected. Revenue of $136.2 million, though 9.4% higher year over year, missed estimates by $2.8 million. 

By late afternoon, shares had tanked 18% to $11.87. Trading volume of 1 million shares was seven times higher than its three-month daily average. 

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TheStreet Ratings team rates DAKTRONICS INC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:

"We rate DAKTRONICS INC (DAKT) a BUY. This is driven by a number of strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its growth in earnings per share, revenue growth, largely solid financial position with reasonable debt levels by most measures, good cash flow from operations and increase in net income. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity."

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