Daktronics 1Q profit climbs, shares up
Posted: Wednesday, August 27, 2008
BROOKINGS, S.D. (AP) -- Daktronics Inc., a supplier of large screen video displays and electronic scoreboards, said Tuesday that its profit rose 37 percent in its first quarter, helped by strength in the billboard business.
The results topped analysts' expectations and its shares rose 14 percent in morning trading.
Chief Executive Jim Morgan said the company expects net sales will fall in the current quarter, however, due to "inherent volatility" in international markets, but will rise in the following six months.
Its customers include sports stadiums, schools and transportation systems.
The company said it earned $9.7 million, or 24 cents per share, in the 14 weeks ended Aug. 2, the first quarter of the company's fiscal year. That compared with $7.1 million, or 17 cents per share, in the same quarter last year, which contained only 13 weeks.
Sales rose to $161.2 million from $120.9 million a year ago.
Analysts expected the company to earn 17 cents per share on sales of $141.5 million in the most recent quarter, according to a survey by Thomson Reuters.
Orders for the first quarter rose 15 percent. Since then, the company announced a contract for the new Meadowlands stadium in New Jersey that is expected to top $45 million.
The company repeated its expectation that net sales will rise more than 20 percent in the new fiscal year -- that could change depending on the outcome of large contracts -- and operating profit margin will range from 8 percent to 9.5 percent.
Its shares rose $2.54 to $20.65 in morning trading.
The results topped analysts' expectations and its shares rose 14 percent in morning trading.
Chief Executive Jim Morgan said the company expects net sales will fall in the current quarter, however, due to "inherent volatility" in international markets, but will rise in the following six months.
Its customers include sports stadiums, schools and transportation systems.
The company said it earned $9.7 million, or 24 cents per share, in the 14 weeks ended Aug. 2, the first quarter of the company's fiscal year. That compared with $7.1 million, or 17 cents per share, in the same quarter last year, which contained only 13 weeks.
Sales rose to $161.2 million from $120.9 million a year ago.
Analysts expected the company to earn 17 cents per share on sales of $141.5 million in the most recent quarter, according to a survey by Thomson Reuters.
Orders for the first quarter rose 15 percent. Since then, the company announced a contract for the new Meadowlands stadium in New Jersey that is expected to top $45 million.
The company repeated its expectation that net sales will rise more than 20 percent in the new fiscal year -- that could change depending on the outcome of large contracts -- and operating profit margin will range from 8 percent to 9.5 percent.
Its shares rose $2.54 to $20.65 in morning trading.
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