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

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

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%

NASDAQ:DAKT opened at $19.36 on Thursday. The company has a debt-to-equity ratio of 0.19, a quick ratio of 1.68 and a current ratio of 2.22. The company has a market cap of $935.04 million, a PE ratio of 35.20, a PEG ratio of 0.52 and a beta of 1.66. Daktronics has a 52-week low of $13.30 and a 52-week high of $28.27. The stock has a 50-day simple moving average of $19.87 and a 200 day simple moving average of $21.08.

Key Daktronics News

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

Hedge Funds Weigh In On Daktronics

Hedge funds have recently made changes to their positions in the business. First Trust Advisors LP acquired a new position in Daktronics during the fourth quarter worth $370,000. Osaic Holdings Inc. increased its stake in Daktronics by 3.2% in the 2nd quarter. Osaic Holdings Inc. now owns 23,638 shares of the technology company’s stock valued at $357,000 after buying an additional 728 shares during the last quarter. Sherbrooke Park Advisers LLC acquired a new stake in Daktronics in the 3rd quarter valued at $308,000. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. lifted its position in Daktronics by 6.5% during the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 24,210 shares of the technology company’s stock worth $295,000 after buying an additional 1,476 shares in the last quarter. Finally, Gallagher Fiduciary Advisors LLC boosted its stake in shares of Daktronics by 21.6% during the 2nd quarter. Gallagher Fiduciary Advisors LLC now owns 18,942 shares of the technology company’s stock worth $286,000 after buying an additional 3,370 shares during the last quarter. 61.69% of the stock is owned by institutional investors.

Analysts Set New Price Targets

Several equities research analysts have issued reports on DAKT shares. Wall Street Zen upgraded Daktronics from a “buy” rating to a “strong-buy” rating in a report on Sunday, May 10th. Weiss Ratings cut Daktronics from a “hold (c+)” rating to a “hold (c)” rating in a report on Tuesday, May 19th. Zacks Research upgraded Daktronics from a “strong sell” rating to a “hold” rating in a research report on Monday, June 15th. Finally, Roth Mkm assumed coverage on Daktronics in a research note on Wednesday, June 10th. They set a “buy” rating and a $26.00 target price for the company. One research analyst has rated the stock with a Strong Buy rating and two have issued a Hold rating to the company’s stock. According to MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and an average target price 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.