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Oct 30, 2021
Daktronics Q2 2022 Earnings Report
Reported an increase in net sales and orders, but a decrease in operating income due to inflation and increased personnel spend.
Key Takeaways
Daktronics reported a strong increase in net sales and orders for Q2 2022, driven by easing pandemic restrictions and strong demand. However, operating income decreased due to inflation in materials and freight costs, as well as increased personnel spend. The company anticipates continued supply chain challenges and inflationary pressures in the near term.
Net sales increased to $164.5 million compared to $127.4 million in Q2 FY2021.
Operating income decreased to $4.4 million from $6.7 million in Q2 FY2021.
Net income was $2.4 million, with earnings per diluted share of $0.05.
Orders grew by 20.7% year-over-year, reaching $163.7 million.
Daktronics
Daktronics
Forward Guidance
Daktronics expects dynamic supply chain conditions to persist through next calendar year and anticipates volatility in pricing, order and revenue cycles, and production costs in the near term. The company is investing in capacity, new technologies, and different markets to benefit from near-term growth and long-term trends.
Positive Outlook
- Market demand is returning to pre-pandemic levels.
- Order bookings grew through the first half of the year.
- Company is adjusting capacity to support increased demand levels.
- Company is actively investing in capacity.
- Company is investing in new technologies and different markets.
Challenges Ahead
- Dynamic supply chain conditions are expected to persist.
- Inflationary pressures are expected to continue.
- Evolving pandemic impacts are expected.
- Volatility in pricing is expected.
- Material, labor, and freight availability constraints are creating headwinds in lead times.