- DAKTRONICS INC has improved earnings per share by 16.7% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, DAKTRONICS INC increased its bottom line by earning $0.53 versus $0.20 in the prior year. This year, the market expects an improvement in earnings ($0.62 versus $0.53).
- Despite its growing revenue, the company underperformed as compared with the industry average of 6.1%. Since the same quarter one year prior, revenues slightly increased by 3.9%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- DAKT has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.31, which illustrates the ability to avoid short-term cash problems.
- Net operating cash flow has significantly increased by 1194.91% to $8.62 million when compared to the same quarter last year. In addition, DAKTRONICS INC has also vastly surpassed the industry average cash flow growth rate of 74.82%.
- Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 26.30% over the past year, a rise that has exceeded that of the S&P 500 Index. We feel that the stock's sharp appreciation over the last year has driven it to a price level which is now somewhat expensive compared to the rest of its industry. The other strengths this company shows, however, justify the higher price levels.
Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link. The Consumer Durables industry as a whole closed the day up 0.2% versus the S&P 500, which was up 0.1%. Laggards within the Consumer Durables industry included Natuzzi SPA ( NTZ), down 3.9%, Elecsys ( ESYS), down 2.6%, SGOCO Group ( SGOC), down 3.1%, Flexsteel Industries ( FLXS), down 1.6% and Daktronics ( DAKT), down 2.5%. TheStreet Ratings Group would like to highlight 3 stocks that pushed the industry lower today: Daktronics ( DAKT) is one of the companies that pushed the Consumer Durables industry lower today. Daktronics was down $0.32 (2.5%) to $12.52 on heavy volume. Throughout the day, 335,604 shares of Daktronics exchanged hands as compared to its average daily volume of 155,700 shares. The stock ranged in price between $12.41-$13.00 after having opened the day at $13.00 as compared to the previous trading day's close of $12.84. Daktronics, Inc., together with its subsidiaries, designs, manufactures, and sells various electronic display systems and related products worldwide. Daktronics has a market cap of $508.8 million and is part of the consumer goods sector. Shares are down 18.1% year-to-date as of the close of trading on Thursday. Currently there is 1 analyst who rates Daktronics a buy, no analysts rate it a sell, and none rate it a hold. STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more. TheStreet Ratings rates Daktronics as a buy. 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. Highlights from TheStreet Ratings analysis on DAKT go as follows: