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Jan 27, 2024
Daktronics Q3 2024 Earnings Report
Daktronics reported positive operating income in a seasonally low-volume period, driven by strong execution of manufacturing, operating, sourcing, and pricing improvements.
Key Takeaways
Daktronics announced its fiscal year 2024 third quarter results, featuring a 29.4% increase in new product and service orders, offset by a 7.9% decrease in sales compared to the previous year. Gross profit margin improved to 24.5%, and operating income rose by 12.9%.
Product and service orders increased by 29.4% compared to the same quarter last year.
Sales decreased by 7.9% due to lower volumes in the Commercial and International business units.
Gross profit margin improved to 24.5% from 22.6% due to strategic pricing and greater efficiency.
Operating income increased by 12.9% compared to the third quarter of fiscal 2023.
Daktronics
Daktronics
Daktronics Revenue by Segment
Revenue by Segment
Commercial Revenue
CapyFin.comLive Events Revenue
CapyFin.comHigh School, Park & Rec Revenue
CapyFin.comTransportation Revenue
CapyFin.comInternational Revenue
CapyFin.com Forward Guidance
Fiscal 2024 fourth quarter net sales are expected to increase sequentially as compared to the third quarter in fiscal year 2024 and decrease from the year-ago period. Gross margin is expected to be similar in comparison to the unique 2023 fourth quarter and operating margin and cash flows are expected to be down as compared to this same period.
Positive Outlook
- Net sales are expected to increase sequentially compared to Q3 2024.
- Focus on capturing growth in addressable end markets.
- Expanding share of customer spend.
- Adding recurring control system and content development revenue.
- Winning new customers.
Challenges Ahead
- Net sales are expected to decrease from the year-ago period.
- Operating margin is expected to be down compared to the same period.
- Cash flows are expected to be down compared to the same period.
- Fiscal fourth quarter seasonality is expected to be similar to pre-pandemic patterns.
- Gross margin is expected to be similar in comparison to the unique 2023 fourth quarter.
Revenue & Expenses
Visualization of income flow from segment revenue to net income