Daktronics (NASDAQ:DAKT) Releases Earnings Results, Beats Expectations By $0.07 EPS

Daktronics (NASDAQ:DAKT) issued its quarterly earnings results on Wednesday. The technology company reported $0.27 EPS for the quarter, topping analysts’ consensus estimates of $0.20 by $0.07, FiscalAI reports. The business had revenue of $208.61 million during the quarter, compared to the consensus estimate of $205.27 million. Daktronics had a net margin of 3.43% and a return on equity of 16.55%. During the same period in the previous year, the firm posted ($0.19) earnings per share.

Here are the key takeaways from Daktronics’ conference call:

• Management said fiscal 2026 was a record year, with revenue up 10.9% to $839 million, record orders, and adjusted EPS up 25% to $1.05. Operating margin also expanded 290 basis points to 7.3% as pricing and efficiency actions took hold.
• The company enters fiscal 2027 with a $356 million backlog and said the pipeline remains robust across live events, transportation, high school, commercial, and international markets. Management said this positions Daktronics to keep progressing toward its fiscal 2028 targets.
• Live events remained a standout, with wins across Major League Baseball, college sports, and major venue technology partnerships, including Grass Valley and the new Camino 8 platform. Management sees these products as expanding software and services opportunities and improving competitive differentiation.
• The company is ramping a new Mexico manufacturing facility, which is expected to begin production in July 2026 and ship first products in Q2. Management said the facility should improve supply chain flexibility and ultimately support margins, though it may not benefit earnings immediately.
• Daktronics reaffirmed its fiscal 2028 targets for 7%-10% revenue CAGR, 10%-12% operating margin, and 17%-20% ROIC. The company also continued share repurchases, buying back about $25.5 million of stock in fiscal 2026.

Daktronics Stock Down 3.7%

Shares of NASDAQ:DAKT opened at $19.36 on Thursday. The stock has a 50-day simple moving average of $19.87 and a 200-day simple moving average of $21.08. The stock has a market capitalization of $935.04 million, a P/E ratio of 35.20, a PEG ratio of 0.52 and a beta of 1.66. Daktronics has a 1 year low of $13.30 and a 1 year high of $28.27. The company has a debt-to-equity ratio of 0.19, a quick ratio of 1.68 and a current ratio of 2.22.

Daktronics News Summary

Here are the key news stories impacting Daktronics this week:

• Positive Sentiment: Daktronics beat analysts’ expectations with Q4 EPS of $0.27 versus the $0.20 consensus, while revenue of $208.6 million also came in above estimates. Conference Call
• Positive Sentiment: The company reported record fiscal 2026 net sales of $838.7 million and record orders of $860.8 million, signaling strong demand across its business segments. Earnings Release
• Positive Sentiment: Profitability improved sharply, with full-year operating margin rising to 7.3% from 4.4% a year ago and adjusted EPS increasing to $1.05 from $0.84. Earnings Release
• Positive Sentiment: Management highlighted a $356.2 million backlog and said it remains well positioned for fiscal 2027, which supports visibility into future revenue. Earnings Release
• Neutral Sentiment: Fourth-quarter orders fell 7.7% from an exceptionally strong prior-year quarter, though the company still finished the year with record annual orders. Earnings Release
• Neutral Sentiment: Daktronics also boosted its share repurchase activity during the year, buying back 1.4 million shares, which may provide some additional support to the stock. Earnings Release

Institutional Investors Weigh In On Daktronics

Institutional investors have recently bought and sold shares of the business. Invesco Ltd. lifted its holdings in shares of Daktronics by 399.2% during the 2nd quarter. Invesco Ltd. now owns 510,243 shares of the technology company’s stock valued at $7,715,000 after acquiring an additional 408,037 shares in the last quarter. Boston Partners acquired a new position in shares of Daktronics during the fourth quarter worth about $6,248,000. AQR Capital Management LLC lifted its stake in shares of Daktronics by 322.5% during the fourth quarter. AQR Capital Management LLC now owns 314,874 shares of the technology company’s stock worth $6,225,000 after purchasing an additional 240,349 shares in the last quarter. Arrowstreet Capital Limited Partnership boosted its position in shares of Daktronics by 533.1% in the third quarter. Arrowstreet Capital Limited Partnership now owns 258,320 shares of the technology company’s stock worth $5,404,000 after buying an additional 217,520 shares during the period. Finally, Progeny 3 Inc. boosted its position in shares of Daktronics by 7.3% in the second quarter. Progeny 3 Inc. now owns 2,650,037 shares of the technology company’s stock worth $40,069,000 after buying an additional 179,529 shares during the period. 61.69% of the stock is currently owned by hedge funds and other institutional investors.

Wall Street Analysts Forecast Growth

DAKT has been the subject of several recent analyst reports. Wall Street Zen raised shares of Daktronics from a “buy” rating to a “strong-buy” rating in a research note on Sunday, May 10th. Roth Mkm assumed coverage on Daktronics in a report on Wednesday, June 10th. They set a “buy” rating and a $26.00 price objective on the stock. Weiss Ratings lowered Daktronics from a “hold (c+)” rating to a “hold (c)” rating in a research note on Tuesday, May 19th. Finally, Zacks Research raised shares of Daktronics from a “strong sell” rating to a “hold” rating in a research note on Monday, June 15th. One analyst has rated the stock with a Strong Buy rating and two have given a Hold rating to the company. Based on data from MarketBeat.com, Daktronics has an average rating of “Moderate Buy” and an average price target of $26.00.

Daktronics Company Profile

Daktronics, Inc (NASDAQ: DAKT) is a leading designer and manufacturer of electronic display systems, video boards, scoreboards and related control systems. Founded in 1968 in Brookings, South Dakota by Al Kurtenbach and Duane Sander, the company has built a reputation for delivering custom visual display solutions to a wide range of markets. Its product portfolio includes large-format LED video displays, programmable message centers, digital billboards, and audio-visual solutions tailored to sports venues, transportation authorities, retail environments and live event producers.

The company’s primary business activities encompass the engineering, fabrication and installation of display systems for customers around the world.