Topic: How To Invest

Hi Pat: I was wondering what your opinion is on Daktronics? Thanks.

Article Excerpt

A: Daktronics Inc., $8.30, symbol DAKT on Nasdaq (Shares outstanding: 44.0 million; Market cap: $365.0 million; www.daktronics.com), is one of the world’s leading suppliers of electronic scoreboards, large electronic display systems and digital messaging systems. Its products range from small scoreboards that cost less than $1,000 to large custom displays that sell for over $40 million. Customers include stadiums, arenas and numerous U.S. state transportation departments. Daktronics’s sales rose 39.4%, from $441.7 million in 2011 to $615.9 million in 2015 (fiscal years ended April 30). Even so, the company’s profit is erratic. Due to higher research spending, its earnings fell from $0.34 a share (or a total of $14.2 million) in 2011 to $0.20 a share (or $8.5 million) in 2012. Earnings turned around in 2013 to $0.53 a share (or $22.8 million), but fell to $0.51 a share (or $22.2 million) in 2014. They dropped again in 2015, to $0.47 a share (or $20.9 million). In the three months ended January…