Daktronics (NASDAQ:DAKT) Releases Quarterly Earnings Results, Beats Expectations By $0.05 EPS

Daktronics (NASDAQ:DAKT) released its quarterly earnings data on Wednesday. The technology company reported $0.40 EPS for the quarter, topping the consensus estimate of $0.35 by $0.05, FiscalAI reports. Daktronics had a return on equity of 18.05% and a net margin of 5.66%.The company had revenue of $234.57 million during the quarter, compared to the consensus estimate of $230.27 million. During the same period last year, the company earned $0.33 EPS.

Here are the key takeaways from Daktronics’ conference call:

• Strong Q1 performance: Net sales increased 7.1%, operating income rose 7.2% to $24.9 million, and EPS grew 21.2% to $0.40 despite the quarter having one fewer week than the prior-year period.
• The company entered Q2 with a $311 million backlog, marking the sixth consecutive quarter above $300 million. Management said several substantial negotiated projects are expected to be formally booked in Q2 and generate revenue primarily from Q3 onward.
• Daktronics cited strong demand across live events, transportation, commercial, high school, and international markets, while Camino 8 deployments and new software offerings such as LiveWrx are intended to expand higher-value software, services, and recurring-revenue opportunities.
• Gross margin expanded 80 basis points to 30.5%, helped by mix, operating leverage, and approximately $3 million of tariff refunds, but higher RAM and other input costs largely offset those benefits in Q1. Selective price increases began in Q2, while procurement and automation initiatives are expected to contribute more meaningfully in the second half of the year and beyond.
• First-quarter bookings were below the prior-year level because of project timing, and the company is considering exiting its highly customized international transportation business, a move that could affect the long-term viability of its Ireland facility. Daktronics also disclosed that the NBA and SEC are seeking information related to Kawhi Leonard and the Clippers and said it is cooperating without providing further comment.

Daktronics Trading Up 1.8%

NASDAQ:DAKT opened at $19.48 on Friday. Daktronics has a one year low of $17.02 and a one year high of $28.27. The business has a fifty day moving average price of $19.93 and a 200-day moving average price of $20.61. The firm has a market capitalization of $940.49 million, a price-to-earnings ratio of 19.88, a price-to-earnings-growth ratio of 0.63 and a beta of 1.68. The company has a debt-to-equity ratio of 0.17, a current ratio of 2.17 and a quick ratio of 1.74.

Wall Street Analysts Forecast Growth

A number of analysts have recently issued reports on DAKT shares. Wall Street Zen downgraded shares of Daktronics from a “strong-buy” rating to a “buy” rating in a report on Saturday, July 4th. Zacks Research upgraded shares of Daktronics from a “strong sell” rating to a “hold” rating in a research report on Monday, June 15th. Craig Hallum restated a “buy” rating and issued a $33.00 target price on shares of Daktronics in a report on Thursday. Weiss Ratings raised Daktronics from a “hold (c)” rating to a “hold (c+)” rating in a report on Thursday, June 25th. Finally, Roth Capital lifted their price objective on Daktronics from $26.00 to $29.00 and gave the stock a “buy” rating in a report on Thursday, July 2nd. Two analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company. According to data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and an average price target of $31.00.

Insider Transactions at Daktronics

In other Daktronics news, insider Sheila Anderson sold 3,636 shares of the company’s stock in a transaction that occurred on Wednesday, July 1st. The shares were sold at an average price of $20.01, for a total value of $72,756.36. Following the completion of the transaction, the insider directly owned 48,371 shares in the company, valued at $967,903.71. This represents a 6.99% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, EVP Bradley T. Wiemann sold 4,000 shares of the firm’s stock in a transaction on Friday, July 17th. The shares were sold at an average price of $19.22, for a total transaction of $76,880.00. Following the sale, the executive vice president owned 125,946 shares in the company, valued at $2,420,682.12. The trade was a 3.08% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. 4.60% of the stock is owned by insiders.

Institutional Investors Weigh In On Daktronics

A number of institutional investors have recently bought and sold shares of the business. Invesco Ltd. raised its holdings in Daktronics by 399.2% during the second 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 during the period. Boston Partners purchased a new stake in shares of Daktronics during the fourth quarter worth about $6,248,000. AQR Capital Management LLC raised its stake in Daktronics by 322.5% during the 4th quarter. AQR Capital Management LLC now owns 314,874 shares of the technology company’s stock valued at $6,225,000 after purchasing an additional 240,349 shares during the period. Arrowstreet Capital Limited Partnership raised its stake in Daktronics by 533.1% during the 3rd quarter. Arrowstreet Capital Limited Partnership now owns 258,320 shares of the technology company’s stock valued at $5,404,000 after purchasing an additional 217,520 shares during the period. Finally, Progeny 3 Inc. lifted its holdings in Daktronics by 7.3% in the 2nd quarter. Progeny 3 Inc. now owns 2,650,037 shares of the technology company’s stock worth $40,069,000 after purchasing an additional 179,529 shares in the last quarter. Hedge funds and other institutional investors own 61.69% of the company’s stock.

More Daktronics News

Here are the key news stories impacting Daktronics this week:

• Positive Sentiment: Strong quarterly results: Daktronics reported EPS of $0.40, topping the $0.35 consensus estimate and rising 21.2% year over year. Revenue increased 7.1% to $234.6 million, also exceeding expectations. Operating cash flow improved to $31.4 million, while cash reached $154.6 million. Daktronics Fiscal 2027 First Quarter Results
• Positive Sentiment: Demand and capital returns: Product backlog remained above $300 million for the sixth consecutive quarter at $311.3 million. The company also repurchased $4.4 million of stock during the quarter, supporting per-share value. Daktronics Earnings and Backlog Update
• Positive Sentiment: Higher analyst outlook: Sidoti raised its fiscal 2027 EPS forecast to $1.25 from $1.21, above the $1.22 consensus. It also increased estimates for the third and fourth quarters, reflecting expectations for continued execution. Daktronics Analyst Estimates

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.