Daktronics (NASDAQ:DAKT) Releases Earnings Results

Key Points

• Daktronics beat Wall Street expectations in its latest quarter, reporting EPS of $0.27 versus the $0.20 consensus and revenue of $208.6 million versus $205.3 million expected.
• The company said fiscal 2026 was a record year, with revenue up 10.9% to $839 million, adjusted EPS up 25% to $1.05, and operating margin expanding to 7.3% from 4.4% a year ago.
• Management pointed to a $356 million backlog and a strong pipeline across live events, transportation, and international markets, while reaffirming its fiscal 2028 targets and continuing share buybacks.

Daktronics (NASDAQ:DAKT - Get Free Report) posted its quarterly earnings results on Wednesday. The technology company reported $0.27 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.20 by $0.07, FiscalAI reports. Daktronics had a net margin of 3.43% and a return on equity of 16.55%. The company had revenue of $208.61 million for the quarter, compared to the consensus estimate of $205.27 million. During the same period last year, the firm 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 Price Performance

Shares of DAKT opened at $19.36 on Thursday. Daktronics has a one year low of $13.30 and a one year high of $28.27. The stock's fifty day moving average is $19.87 and its 200-day moving average is $21.08. 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 firm has a market capitalization of $935.04 million, a price-to-earnings ratio of 35.20, a price-to-earnings-growth ratio of 0.52 and a beta of 1.66.

Institutional Investors Weigh In On Daktronics

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Quarry LP bought a new position in Daktronics during the 3rd quarter valued at $25,000. Caitong International Asset Management Co. Ltd boosted its stake in Daktronics by 22,566.7% during the fourth quarter. Caitong International Asset Management Co. Ltd now owns 1,360 shares of the technology company's stock valued at $27,000 after buying an additional 1,354 shares in the last quarter. Northwestern Mutual Wealth Management Co. grew its holdings in Daktronics by 204.3% during the second quarter. Northwestern Mutual Wealth Management Co. now owns 3,046 shares of the technology company's stock worth $46,000 after acquiring an additional 2,045 shares during the period. BNP Paribas Financial Markets raised its position in Daktronics by 66.8% in the second quarter. BNP Paribas Financial Markets now owns 3,897 shares of the technology company's stock worth $59,000 after acquiring an additional 1,561 shares in the last quarter. Finally, Royal Bank of Canada lifted its holdings in Daktronics by 12.7% in the 4th quarter. Royal Bank of Canada now owns 6,430 shares of the technology company's stock valued at $127,000 after acquiring an additional 724 shares during the last quarter. Institutional investors own 61.69% of the company's stock.

Trending Headlines about Daktronics

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

Wall Street Analyst Weigh In

DAKT has been the subject of a number of research reports. Roth Mkm began coverage on Daktronics in a research note on Wednesday, June 10th. They issued a "buy" rating and a $26.00 target price for the company. Zacks Research raised Daktronics from a "strong sell" rating to a "hold" rating in a report on Monday, June 15th. Wall Street Zen upgraded Daktronics from a "buy" rating to a "strong-buy" rating in a research report on Sunday, May 10th. Finally, Weiss Ratings downgraded Daktronics from a "hold (c+)" rating to a "hold (c)" rating in a research note on Tuesday, May 19th. One investment analyst has rated the stock with a Strong Buy rating and two have given a Hold rating to the company. According to MarketBeat, the company has an average rating of "Moderate Buy" and a consensus 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.

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