Daktronics Q1 2022 Earnings Report
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.