Daktronics, Inc. (NASDAQ:DAKT) shares are trading higher following second-quarter results.
Sales rose 4.5% year over year to $208.33 million, beating the consensus of $202.59 million, led by comparatively higher volumes in the Commercial, Live Events and, Transportation business units.
Orders fell 3.3% due to lower orders in the Live Events, Transportation, and International business units.
The product order backlog was $236.0 million as of October 26, 2024. Product and service orders for the quarter totaled $177.6 million, down 3.3% decrease year over year.
Gross margin decreased slightly to 26.8% from 27.2% a year ago due to a change in the sales mix between periods.
Operating income stood at $15.8 million vs. $19.4 million a year ago quarter. Net income stood at $21.4 million in the quarter, while adjusted net income was $13.9 million. Adjusted EPS of $0.27 beat the consensus of $0.20.
As of October 26, cash and marketable securities stood at $134.4 million.
Daktronics enters the third quarter of fiscal 2025 with a 3.3% year-over-year growth in orders and expects order volume to continue increasing for the full fiscal year.
The first half of the fiscal year typically sees the highest sales volume, and the company anticipates normal “seasonal” levels for the remainder of fiscal 2025.
CFO Search: As announced on October 21, 2024, Daktronics’ Board of Directors has initiated a search for a new Chief Financial Officer.
Reece Kurtenbach, Daktronicsʹ Chairman, President and Chief Executive Officer, said, “We completed innovative and visually striking installations at the L.A. Clippers’ Intuit Dome, the Miami HEAT’s Kaseya Center that have both drawn attention in trade and social media. We also served other customers with the completion and update to the latest digital technologies at numerous college and high school sporting facilities and commercial locations.”
“We continue to execute on our business transformation plan, the goal of which is to grow revenue faster than the Company’s addressable market, expand operating margins, and generate returns on capital in the mid-to-high-teens and consistently above the Company’s cost of capital.”
Investors can gain exposure to the stock via SPDR FactSet Innovative Technology ETF (NYSE:XITK) and First Trust Active Factor Small Cap ETF (NYSE:AFSM).
Price Action: DAKT shares are up 15.4% at $18.85 at the last check Wednesday.
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