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Oct 28, 2023

Daktronics Q2 2024 Earnings Report

Daktronics reported a strong second quarter performance driven by gross profit margin expansion and cash flow generation.

Key Takeaways

Daktronics reported a 6.4% increase in sales, reaching $199.4 million, and a significant improvement in gross profit margin to 27.2%. Operating income increased substantially to $19.4 million. The company's backlog was $306.9 million. Andrew Siegel was appointed as the new Lead Independent Director.

Sales increased by 6.4 percent compared to the second quarter of fiscal 2023, reaching $199.4 million.

Gross profit margin expanded to 27.2 percent, compared to 16.9 percent in the same period last year.

Operating income significantly improved to $19.4 million, compared to $1.5 million in the second quarter of fiscal 2023.

Product order backlog was $306.9 million at the end of the quarter.

Total Revenue
$199M
Previous year: $187M
+6.4%
EPS
$0.27
Previous year: -$0.29
-193.1%
Order Backlog
$307M
Previous year: $463M
-33.7%
Gross Margin
27.2%
Previous year: 16.9%
+60.9%
Operating Margin
9.7%
Previous year: 0.8%
+1112.5%
Gross Profit
$54.2M
Previous year: $31.7M
+71.0%
Cash and Equivalents
$64.7M
Previous year: $6.43M
+906.7%
Free Cash Flow
$20.4M
Previous year: -$4.71M
-533.2%
Total Assets
$511M
Previous year: $464M
+10.1%

Daktronics

Daktronics

Daktronics Revenue by Segment

Forward Guidance

Daktronics expects growth in the global use of sophisticated audio-visual communication systems and remains focused on capturing market growth and broadening its market position.

Positive Outlook

  • Grow our business profitably while generating cash through working capital management, strategic pricing adjustments, product mix enhancements and careful expense management
  • Improve operational efficiency to lower costs, reduce lead times and improve the customer experience
  • Develop additional markets for new customers and channels while continuing to grow in the markets where the company been a leader to date
  • Implement robust integrated business planning systems to generate data-based insights for improved decision making
  • Investing in high-return projects and technologies, including digital technologies for both internal and customer facing uses

Challenges Ahead

  • Monitor and then adjust as necessary to the ever-evolving geopolitical and global economic environment to maintain profitability and cash generation

Revenue & Expenses

Visualization of income flow from segment revenue to net income