2024-04-26 15:08:09 ET
Summary
- Daktronics past financials have shown robust revenue recovery from the impact of COVID-19. Although margins recovered in 2023, they have yet to reach pre-pandemic levels.
- Looking ahead, the global LED video display market is expected to grow to $20.8 billion by 2027. This positive outlook is expected to bolster Daktronics' growth.
- Despite the positive growth drivers, Daktronics' net income margin and free cash flow are low, posing a risk in challenging economic conditions.
Synopsis
Daktronics ( DAKT ) specializes in the design and manufacture of electronic scoreboards, programmable display systems, and large-screen video displays. DAKT’s historical financials have shown a robust recovery from the impact of the COVID-19 pandemic. Additionally, its margins in 2023 also recovered, but it has yet to reach back to 2021’s level. For the third quarter, net sales decreased because of a tough comparison period. On a brighter note, 3Q24’s margins expanded year-over-year. Looking ahead, the global LED video display market is expected to grow to $20.8 billion by 2027. This growth is supported by robust growth in the Asia-Pacific, Americas, Europe, and Middle East and Africa regions. The expected robust growth in Americas will support DAKT’s growth as most of its revenue is from that region....
Read the full article on Seeking Alpha
For further details see:
Daktronics: Strong Growth Outlook But Weak Bottom-Line Margins