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Daktronics (DAKT - Free Report) is a Zacks Rank #1 (Strong Buy) that has an A for Value and a B for Growth. This company is the market of electronic scoreboards, computer programed displays and large screen video displays. Maybe you have seen some “tricked-out” man caves lately that have scoreboards and arena style displays in them… well it is quickly becoming the new thing to do. Let’s explore more about this company in this Bull of The Day article.
Description
Daktronics, Inc. engages in designing and manufacturing electronic scoreboards, programmable display systems and large screen video displays for sporting, commercial and transportation applications. It operates through the following segments: Commercial, Live Events, High School Park and Recreation, Transportation, and International. The company was founded by Aelred J. Kurtenbach and Duane E. Sander in 1968 and is headquartered in Brookings, SD.
Earnings History
When I look at a stock, the first thing I do is look to see if the company is beating the number. This tells me right away where the market’s expectations have been for the company and how management has communicated to the market. A stock that consistently beats has management communicating expectations to Wall Street that can be achieved. That is what you want to see.
I see only one quarter with a Zacks Consensus Estimate and it was the most recent quarter. The company posted EPS of 27 cents when the estimate called for 14 cents. That 13 cent difference works out to be a 92% positive earnings surprise.
Earnings Estimates Revisions
Earnings estimates revisions is what the Zacks Rank is all about.
Estimates are moving higher for Daktronics.
This quarter has moved from 21 cents to 30 cents.
Next quarter has increased from 22 cents to 30 cents.
The full fiscal year has moved up from $0.84 to $1.13.
Next year has moved from $0.92 to $1.17.
Growth
I see 2.6% growth expected this year and then that number accelerates to 4.45% next year.
The most recent quarter saw topline growth of 2.87%.
Valuation
The forward earnings multiple of 12x is right where you would expect a company like this. There is a big potential for growth here but the margins have been slipping of late. I see operating margins going from 8.5% to 8.3% and most recently down to 7.2%, that needs to be turned around quickly if the earnings multiple is to be expanded.
Price to book is at 2.6x while price to sales comes in at 0.77x.
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Bull Of The Day: Daktronics (DAKT)
Daktronics (DAKT - Free Report) is a Zacks Rank #1 (Strong Buy) that has an A for Value and a B for Growth. This company is the market of electronic scoreboards, computer programed displays and large screen video displays. Maybe you have seen some “tricked-out” man caves lately that have scoreboards and arena style displays in them… well it is quickly becoming the new thing to do. Let’s explore more about this company in this Bull of The Day article.
Description
Daktronics, Inc. engages in designing and manufacturing electronic scoreboards, programmable display systems and large screen video displays for sporting, commercial and transportation applications. It operates through the following segments: Commercial, Live Events, High School Park and Recreation, Transportation, and International. The company was founded by Aelred J. Kurtenbach and Duane E. Sander in 1968 and is headquartered in Brookings, SD.
Earnings History
When I look at a stock, the first thing I do is look to see if the company is beating the number. This tells me right away where the market’s expectations have been for the company and how management has communicated to the market. A stock that consistently beats has management communicating expectations to Wall Street that can be achieved. That is what you want to see.
I see only one quarter with a Zacks Consensus Estimate and it was the most recent quarter. The company posted EPS of 27 cents when the estimate called for 14 cents. That 13 cent difference works out to be a 92% positive earnings surprise.
Earnings Estimates Revisions
Earnings estimates revisions is what the Zacks Rank is all about.
Estimates are moving higher for Daktronics.
This quarter has moved from 21 cents to 30 cents.
Next quarter has increased from 22 cents to 30 cents.
The full fiscal year has moved up from $0.84 to $1.13.
Next year has moved from $0.92 to $1.17.
Growth
I see 2.6% growth expected this year and then that number accelerates to 4.45% next year.
The most recent quarter saw topline growth of 2.87%.
Valuation
The forward earnings multiple of 12x is right where you would expect a company like this. There is a big potential for growth here but the margins have been slipping of late. I see operating margins going from 8.5% to 8.3% and most recently down to 7.2%, that needs to be turned around quickly if the earnings multiple is to be expanded.
Price to book is at 2.6x while price to sales comes in at 0.77x.