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Daktronics Shares Are Jumping: 'Our 2025 Priorities Are To Execute Broad Digital Transformation'

Published 26/06/2024, 16:17
© Reuters.  Daktronics Shares Are Jumping: \'Our 2025 Priorities Are To Execute Broad Digital Transformation\'

Benzinga - by Lekha Gupta, Benzinga Editor.

Daktronics, Inc. (NASDAQ:DAKT) shares are trading higher following fourth-quarter FY24 results.

Sales rose 2.9% Y/Y to a new record of $215.9 million. This was due to backlog fulfillment, improved stability in supply chains, and expanded manufacturing capabilities. They beat the consensus of $186.19 million.

Gross margin expanded by 90 basis points Y/Y to 25.7%. Operating income increased by 6.4% Y/Y to $19.4 million in the quarter.

New orders for products and services totaled $205.8 million, up 14.6% Y/Y, fueled by robust demand in the Live Events and Transportation business segments, alongside strong expansion in the International business unit.

As of April 27, cash and marketable securities stood at $81.7 million. The product order backlog stood at $316.9 million, reflecting ongoing efforts to align the backlog with expected manufacturing lead times.

EPS $0.05 missed the consensus of $0.15.

“Our critical priorities for fiscal 2025 are to execute a broad digital transformation to modernize our service systems for field service automation, to advance our enterprise performance planning capabilities, and to improve and automate quoting and sales processes,” Daktronics CEO Reece Kurtenbach said.

The company recently launched its Flip-Chip COB (Chip on Board) LED display family, Kurtenbach added, calling it “the next step” in evolving the narrow-pixel pitch (NPP) product.

Price Action: DAKT shares are up 26.65% at $13.83 at last check Wednesday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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