Warning Whacks Daktronics

Shares plunge more than 20% after the company slashes guidance.
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Shares of

Daktronics

(DAKT) - Get Report

tumbled 21% early Monday after the maker of electronic scoreboards and video displays slashed its fourth-quarter guidance.

Late Thursday, the company forecast earnings of 6 cents to 10 cents a share for the period ending April 28. The company's earlier guidance called for a profit of 12 cents to 19 cents a share.

Daktronics projected revenue of $101 million to $105 million, down from a prior view of $106 million to $118 million.

Analysts polled by Thomson First Call project earnings of 17 cents a share on revenue of $114 million.

"Heading into the fourth quarter, we had anticipated that the order volume earlier in the quarter would be sufficient to achieve our estimated range of sales," the company said. "However, we were unable to book enough orders earlier in the quarter to generate the sales, which is causing this revision in the estimates."

Shares recently were trading down $5.93 to $21.98.