Daktronics, a leading manufacturer of electronic displays for scoreboards and more, has resolved its previously issued going-concern warning, causing its stock to skyrocket to a four-year high. In morning trading, the stock surged nearly 35% to reach $8.23. This year alone, shares have experienced a remarkable increase of approximately 190%, positioning the stock to potentially close at its highest level since 2019.
The Brookings, S.D.-based company released its fiscal fourth quarter results earlier on Wednesday. The announcement indicated that Daktronics successfully resolved the conditions surrounding its previous warning of doubts about its ability to continue as a going concern. Such warnings are required to be issued when auditors or management determine that a company may not survive another year.
For the three-month period ending on April 29, Daktronics reported a profit of $21.4 million, equivalent to 47 cents per share. This marked a significant improvement compared to the same period last year, when the company suffered a loss of $1.1 million, or 2 cents per share. Meanwhile, sales experienced a notable increase of 29.4% to reach $209.9 million.
However, it’s worth noting that during this time, orders declined by 37.2%. Daktronics attributed this drop to the fact that its supply chain and manufacturing capacity have significantly improved. As a result, customers no longer feel compelled to rush their orders in an attempt to secure supply.
Daktronics’ exceptional performance and successful resolution of its going-concern warning serve as a testament to the company’s determination and ability to overcome challenges. With its stock soaring and the future looking promising, Daktronics is set to continue its upward trajectory in the market.