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Feb 01, 2020
Daktronics Q3 2020 Earnings Report
Daktronics reported a net sales increase of 10.9% compared to the same quarter last year, but experienced a decline in profitability due to project cost overruns and changes in project mix.
Key Takeaways
Daktronics reported Q3 fiscal year 2020 results with increased net sales but decreased profitability. Net sales increased by 10.9% to $127.7 million, while the company faced an operating loss of $9.2 million and a net loss of $12.7 million, or $0.28 per diluted share.
Net sales increased by 10.9% to $127.7 million compared to Q3 2019.
The company experienced an operating loss of $9.2 million and a net loss of $12.7 million, or $0.28 per diluted share.
Orders remained relatively flat at $135.0 million compared to $135.4 million in Q3 2019.
Product order backlog at the end of Q3 2020 was $187 million, up from $168 million a year earlier.
Revenue by Segment
Forward Guidance
Daktronics anticipates growth opportunities but faces near-term uncertainties due to the coronavirus situation, which may impact order timing and supply chains.
Positive Outlook
- Sales opportunities in the marketplace are growing.
- Active project bids have increased this year compared to last year in all business units.
- The dynamic audio-visual communication systems market is expected to grow over the long-term.
- Growth is seen in current markets, with access to new markets through increased capabilities of NPP displays.
- The company continues to invest in new technologies and market development.
Challenges Ahead
- Orders and sales timing may be impacted by the coronavirus situation (COVID-19).
- Potential customer order delays due to COVID-19.
- Potential supply chain disruptions due to COVID-19.
- Fixed ongoing costs need to be covered.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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