Daktronics (DAKT) - Zacks #1 Rank Top Performers

Well, if another positive surprise, more year-over-year increases in EPS and revenue, and sharp gains in earnings estimates over the past month are any indication, you'd have to say that this supplier of large screen video displays and electronic scoreboards is doing just fine.

On a rather drab day for the overall market, Daktronics was able to advance by 4.33%. Meanwhile, volume surpassed 432,000 shares, compared to the daily average of a little more than 254,000.

In addition to its Zacks #1 Rank, the company is also maintaining a longer-term "Outperform" recommendation.

Daktronics has strong leadership positions in, and is the world's largest supplier of, large screen video displays, electronic scoreboards, LED text and graphics displays, and related control systems. The company designs, manufactures, markets and services display systems for customers around the world in sport, business, schools and theaters, and transportation segments.

DAKT is part of the electronic products – miscellaneous industry. It is one of 4 companies from this space on today's Zacks #1 Rank List. The other 3 names are American Science and Engineering, Inc. (ASEI), Bel Fuse Inc. (BELFB) and Cubic Corp. (CUB).

Told Ya So

During its successful fiscal first quarter report, Daktronics said that it may be through the worst of the downturn. You could say that the fiscal second-quarter underscored that belief, as earnings per share of 17 cents beat the Zacks Consensus Estimate by more than 183%. It also improved substantially from 12 cents in the year-ago quarter.

As you can see below, this performance completes a pattern for earnings surprises. The company has traded off between pairs of misses and pairs of beats over the past 10 quarters. Hopefully, it will break that pattern when it comes time to report fiscal third-quarter results.

Meanwhile, net sales advanced 10% year over year to $126.9 million from $115.4 million.

DAKT said it executed well on a healthy backlog during the period. At the end of the fiscal second quarter, the company had a backlog of about $121 million, compared with $90 million a year earlier.

Looking toward the historically-lower fiscal third quarter, Daktronics expects net sales will increase "significantly" given this high backlog.

Earnings Estimates for Daktronics

Daktronics only has 4 total estimates for this fiscal year and next fiscal year each, but they have all moved higher in the past month. This has led to a triple-digit improvement in estimates for this fiscal year, a very handsome advance for next fiscal year and this cool-looking chart:

The Zacks Consensus Estimate for this fiscal year, ending April 2011, is 37 cents per share, which is up 105% in the past 30 days. As for the fiscal year ending April 2012, the Zacks Consensus Estimate of 56 cents has improved 70% in the same amount of time.

In addition, analysts currently expect profit growth of more than 51% for next fiscal year over this fiscal year.

 
AMERICAN SCIENC (ASEI): Free Stock Analysis Report
 
BEL FUSE INC-B (BELFB): Free Stock Analysis Report
 
CUBIC CORP (CUB): Free Stock Analysis Report
 
DAKTRONICS INC (DAKT): Free Stock Analysis Report
 
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