Loading...
•
Jul 31, 2021
Daktronics Q1 2022 Earnings Report
Reported results for the first quarter of fiscal year 2022, showing increased orders but facing headwinds from supply chain challenges and inflation.
Key Takeaways
Daktronics reported a slight increase in net sales and a significant rise in orders for Q1 2022. However, operating income and net income decreased due to increased costs and a different sales mix. The company is navigating supply chain challenges and expects these to persist.
Net sales increased slightly to $144.7 million compared to $143.6 million in Q1 FY2021.
Operating income decreased to $5.7 million from $9.5 million in the same quarter last year.
Net income decreased to $3.7 million, with earnings per diluted share at $0.08, compared to $7.5 million and $0.17 respectively in Q1 FY2021.
Orders surged by 48.8% year-over-year to $181.7 million, driven by easing pandemic restrictions and large project bookings.
Daktronics
Daktronics
Forward Guidance
The company anticipates a successful year due to a solid backlog and strong pipeline, but expects volatility in revenue cycles and production costs due to ongoing supply chain challenges. Long-term, the company believes the audiovisual industry has strong growth potential and is investing in capacity, new technologies, and markets to meet future demand.
Positive Outlook
- Solid backlog positions the company for a successful year.
- Strong pipeline of opportunities expected to drive growth.
- Belief in the strong fundamentals of the audiovisual industry.
- Investments in capacity to meet expected demand.
- Investments in new technologies and markets to provide world-leading solutions and value.
Challenges Ahead
- Supply chain challenges are expected to cause volatility in revenue cycles.
- Supply chain challenges are expected to cause volatility in production costs.
- Material availability constraints are creating headwinds in lead times.
- Inflationary pressures are impacting costs.
- Expectation that supply chain headwinds will persist through the calendar year, with some impacts continuing into next calendar year.