Daktronics Sees Sales Surge in Q1

1 Mins read

Shares of Daktronics (NASDAQ: DAKT) surged after the electronic scoreboard maker reported a significant increase in sales for the recently ended quarter. The company attributed the jump to a rebound in demand from high schools gearing up for football season and the live events industry.

Strong Performance and Bullish Outlook

Daktronics’ stock soared 15% to $9.60 per share in premarket trading, building on an already impressive year that saw shares rise nearly 200%. The positive momentum is driven by the company’s efforts to improve its global supply chain and meet a substantial backlog of orders.

In its Wednesday report, the South Dakota-based firm revealed first-quarter sales of $232.5 million, a remarkable 35% surge from the previous year. CEO Reece Kurtenbach emphasized the company’s commitment to fulfilling high school orders ahead of the upcoming fall football season, as well as catering to the live-events industry.

Streamlined Supply Chain and Profit Boost

Kurtenbach noted that lead times have improved as the supply chain strengthens. Furthermore, price increases have contributed to doubling the company’s gross profit margins. However, Daktronics did face some challenges during the quarter, such as labor shortages and temporary shutdowns of its Chinese facilities due to Covid-related issues.

Daktronics is poised for continued growth as it leverages its strong sales performance and enhances its operational efficiency.

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