Needham & Company Raises Price Target on Daktronics (DAKT) Following 2Q

Needham & Company reiterated a Buy rating on Daktronics (NASDAQ: DAKT), and raised the price target to $11.00 (from $9.50), following the company's 2Q earnings report. EPS totaled $0.20, well above Street's $0.10 estimate. Revenues increased 8% y/o/y to $170M, 4% above $163M estimates. Sales from Live Events increased 9% y/o/y, while bookings dropped 52%, reflecting the timing of awards, particularly larger deals of more than $5M.

Analyst James Ricchiuti commented, "DAKT yesterday delivered a solid FQ2 report, highlighted by stronger than expected 8% y/o/y revenue, growth and the strongest quarterly EPS and gross margins in three years. Although orders declined 14%, including a 52% drop in the Live Events vertical, and backlog fell 14%, mgmt sounded cautiously optimistic about the balance of F17 across it major markets, including Live Events where there are several large deals in the pipeline. Mgmt expects revenues for FQ3 to be flat to down slightly y/o/y. We are raising our estimates modestly for F17 and F18. We reaffirm our Buy rating."

For an analyst ratings summary and ratings history on Daktronics click here. For more ratings news on Daktronics click here.

Shares of Daktronics closed at $9.99 yesterday.

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