Needham & Company Raises price Target on Daktronics (DAKT) to $9.50 Following Solid 1Q
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Needham & Company reiterated a Buy rating on Daktronics (NASDAQ: DAKT), and raised the price target to $9.50 (from $8.00), following the company's 1Q earnings report. EPS totaled $0.13, well above Street's $0.05 estimate. Revenues increased 5% y/o/y to $157.1M, above the consensus of $146.8M.
Analyst James Ricchiuti commented, "DAKT finally provided investors with a bit of good news, reporting better than expected FQ1 results, which sent the shares up 18% in intraday trading today. Revenues increased 5% y/o/y, which was solidly above mgmt expectations of a slight decline. The upside revenue surprise, together with the strongest gross margins in nearly 2 years, produced much stronger than expected EPS. Orders rose 6% y/o/y, with the B-T-B at 1.1, while backlog was up 8% y/o/y and 10% sequentially. Mgmt expects revenues for FQ2 to be up modestly y/o/y, with gross margins expected to be flat to down slightly sequentially (though up y/o/y). We are encouraged by the y/o/y improvement in gross margins and generally solid bookings. We are tweaking our numbers for F17 and F18 modestly higher. We reaffirm our Buy rating."
Shares of Daktronics closed at $6.93 yesterday.
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Create E-mail Alert Related CategoriesAnalyst Comments, Analyst EPS Change, Analyst EPS View, Analyst PT Change
Related EntitiesNeedham & Company, Earnings
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