Electronic display systems maker Daktronics Inc. (DAKT), Tuesday reported a better-than-expected increase in profit for the first quarter, aided mostly by robust revenue growth and improved gross margin.
Looking ahead to the second quarter, Daktronics said it expects net sales to be higher than last year, reflecting strong order bookings.
The news had a healthy impact on Daktronics shares which opened sharply higher Tuesday morning. The stock is currently soaring over 17.0 percent in afternoon trade on the Nasdaq.
"Our positive results for the quarter were led by an increase in our top line in conjunction with increased gross profit margins," said CEO Jim Morgan.
Brookings, South Dakota-based Daktronics reported first quarter net income of $6.7 million or $0.16 per share, compared to $3.4 million or $0.08 per share last year.
On average, four analysts polled by Thomson Reuters expected earnings of $0.04 per share for the quarter. Analysts' estimates typically exclude special items.
Net sales for the quarter increased to $133 million from $118.7 million in the prior year, while analysts expected revenues of $120.37 million.
Backlog at the end of the quarter was about $164 million, compared to about $154 million a year earlier.
Daktronics is focusing on video technology with tighter pixel pitches for outdoor applications using LED surface mount technology. The company plans to roll out the first models of a new family of products using this technology later this fiscal year.
DAKT is trading at $9.47, up $1.41 or 17.49%, on a volume of million shares on the Nasdaq.
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