Daktronics Posts Downbeat Q4 Profit, But Sales Top Estimates

reported weaker-than-expected earnings for the fiscal fourth quarter, but the company's sales exceeded analysts' estimates. The Brookings, South Dakota-based company reported a quarterly profit of $3.8 million, or $0.09 per share, versus a profit of $1.8 million, or $0.04 per share, in the year-ago quarter. Its revenue surged 16 percent to $158.1 million. However, analysts were estimating a profit of $0.11 per share on revenue of $142.15 million. The average estimate among 4 Estimize users was for earnings of $0.15 per share and revenue of $145.33 million. Its sales from live event segment rose 18.8 percent in the quarter, while commercial sales surged 19.6 percent. International sales climbed 16.2 percent during the quarter, while transportation sales surged 3.6 percent. Operating income rose to $7.0 million in the latest quarter, compared to $6.8 million, in the year-earlier quarter. Total orders increased 42 percent to $196.1 million. At the end of the fiscal 2015 fourth quarter, backlog was $191.1 million, versus a backlog of $171.6 million, a year ago. "During fiscal 2016, we continue to focus on growing profitably over the long-term. In the short-term, we will be challenged as we continue to see gross profit pressure due to the competitive environment, the anticipated mix of business, and increasing personnel costs. We have initiatives in process to improve gross profit, which includes enhanced capacity planning, releasing new product designs, and improving operational effectiveness. However, the related benefits will take time to realize," Reece Kurtenbach, chairman, president and chief executive officer said. Daktronics shares closed at $10.79 yesterday.