Daktronics net up 50% on 10% revenue growth

Here are the highlights from yesterday’s Daktronics first quarter fiscal 2017 earnings release and conference call transcript.

  • Revenue increased by 10% to $172 million for the 3 months ended July 29, 2017 as improvements in the firm’s Live Events and Transportation business offset declines in the Commercial and International business units.  CEO Reece Kurtenbach mentioned the company completed several NFL and high school stadium projects.

 

  • The firm’s commercial business, which includes digital billboards and on-premise signs declined $3.4 million (9%) to $33 million for the 3 months ended July 29, 2017.  Commercial orders are down 33% to $30 million which suggests that the second quarter will be worse.   Nevertheless, CEO Reece Kurtenbach was bullish on the commercial unit’s prospects:

 

In our commercial business unit, we see opportunities for growth, mainly driven by digital opportunities in the spectacular segment, both new and replacement systems for our national account-based business, expansion of solutions for indoor applications and continued activity in the Billboard segment. We also expect live event sales to maintain order levels of prior years.

  • Net Income increased 50% to $8.4 million due to improved productivity, stable warranty costs and higher sales.

Insider’s take:  Commercial down, everything else up.  The market liked the news.  Daktronics stock closed the day up 4%.

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