Needham & Company Raises price Target on Daktronics (DAKT) to $9.50 Following Solid 1Q

August 23, 2016 3:44 PM EDT
Get Alerts DAKT Hot Sheet
Price: $8.40 -2.33%

Rating Summary:
    1 Buy, 1 Hold, 0 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 25 | Down: 28 | New: 8
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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."

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 $6.93 yesterday.

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