EVH - Why Daktronics Evolent Health and Central Garden & Pet Slumped Today
The stock market wasn't all that busy on Wednesday, but it was open. Investors were generally content with letting major benchmarks move modestly higher in advance of the Thanksgiving holiday following some positive U.S. economic data. Yet some companies had to deal with setbacks that sent their share prices lower. Daktronics (NASDAQ: DAKT), Evolent Health (NYSE: EVH), and Central Garden & Pet (NASDAQ: CENT) were among the worst performers. Here's why they did so poorly.
Shares of Daktronics sank nearly 9% after the maker of stadium scoreboards and displays reported its fiscal second-quarter financial results. Sales climbed just 1.3% compared to year-earlier results, and orders actually inched lower year over year. Daktronics also saw its backlog shrink by $25 million from just three months ago to $182 million. Although the company got solid order demand from high schools and in its international division, weakness in commercial, live event, and transportation applications weighed on performance. Going forward, Daktronics hopes that its investment in new product development will result in greater sales, but for now, the digital technology company is dealing with tariff-related expenses and high delivery costs.
Image source: Daktronics.