Investors sent shares of Daktronics (NASDAQ:DAKT) plunging Wednesday after the global manufacturer of electronic display systems missed market estimates for its fiscal fourth-quarter profit and revenue.
By the end of the trading session, Daktronics shares had shed nearly 19% to US$8.18 on news that the company swung from a profit in the year-ago quarter to a net loss of US$3.8mln or US$0.09 per share in its latest quarter. Its revenue, meanwhile, came to US$138.2mln in the three months until the close of April.
The company, based in Brookings, South Dakota, attributed its lackluster performance to a sharp slowdown in orders from its Live events and Transportation business unit.
Wall Street analysts had expected Daktronics to earn US$0.05 per share on revenue of US$145.16mln.
“While the overall results of fiscal 2018 were below expectations, we remain optimistic for the future,” said Reece Kurtenbach, Daktronics president and chief executive officer. “As we enter into fiscal 2019, sport, commercial and governmental entities continue to choose digital applications to support their needs. This demand is driving long-term growth in LED video displays as well as other digital applications.”
The company is throwing money into the development of its LED screens and introducing narrow pixel pitch and control features to its array of products.
One recent achievement is that it installed the digital displays in the Mercedes Benz Stadium where the Atlanta Falcons play in Atlanta, Georgia. A second recent one is the giant digital display overlooking Piccadilly square in London.
The company's fiscal fourth-quarter orders for the year came to US$162mln compared to US$178.1mln in the same period last year.