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

Daktronics (NASDAQ:DAKT) announced its quarterly earnings results on Wednesday. The technology company reported $0.40 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.35 by $0.05, FiscalAI reports. Daktronics had a return on equity of 17.62% and a net margin of 5.41%.The firm had revenue of $234.57 million during the quarter, compared to analyst estimates of $230.27 million. During the same quarter in the previous year, the business earned $0.33 earnings per share.

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 Down 1.2%

Shares of Daktronics stock opened at $19.13 on Thursday. Daktronics has a fifty-two week low of $16.89 and a fifty-two week high of $28.27. The company has a debt-to-equity ratio of 0.18, a quick ratio of 1.74 and a current ratio of 2.31. The company has a market cap of $923.60 million, a P/E ratio of 21.02, a price-to-earnings-growth ratio of 0.64 and a beta of 1.68. The firm has a 50-day simple moving average of $19.93 and a two-hundred day simple moving average of $20.66.

Insider Transactions at Daktronics

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

Institutional Trading of Daktronics

Several institutional investors have recently modified their holdings of the stock. Quarry LP purchased a new stake in shares of Daktronics during the third quarter worth about $25,000. Caitong International Asset Management Co. Ltd lifted its stake in Daktronics by 22,566.7% in the 4th 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. boosted its holdings in Daktronics by 204.3% in the 2nd quarter. Northwestern Mutual Wealth Management Co. now owns 3,046 shares of the technology company’s stock worth $46,000 after buying an additional 2,045 shares during the last quarter. BNP Paribas Financial Markets increased its stake in Daktronics by 66.8% during the 2nd quarter. BNP Paribas Financial Markets now owns 3,897 shares of the technology company’s stock worth $59,000 after buying an additional 1,561 shares in the last quarter. Finally, Royal Bank of Canada raised its holdings in shares of Daktronics by 12.7% during the fourth 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 and hedge funds own 61.69% of the company’s stock.

Analyst Ratings Changes

Several equities research analysts have weighed in on DAKT shares. Weiss Ratings upgraded Daktronics from a “hold (c)” rating to a “hold (c+)” rating in a report on Thursday, June 25th. Zacks Research raised Daktronics from a “strong sell” rating to a “hold” rating in a research report on Monday, June 15th. Roth Capital lifted their price objective on shares of Daktronics from $26.00 to $29.00 and gave the stock a “buy” rating in a research report on Thursday, July 2nd. Finally, Wall Street Zen cut Daktronics from a “strong-buy” rating to a “buy” rating in a research note on Saturday, July 4th. One equities research analyst has rated the stock with a Buy rating and two have given a Hold rating to the company’s stock. According to data from MarketBeat, Daktronics has a consensus rating of “Hold” and an average price target of $29.00.

Daktronics News Roundup

Here are the key news stories impacting Daktronics this week:

• Positive Sentiment: Quarterly earnings exceeded expectations. Fiscal Q1 2027 EPS was $0.40, above the $0.35 consensus and up 21.2% year over year. Revenue rose 7.1% to $234.6 million despite one fewer reporting week, while operating income increased to $24.9 million. Daktronics Beats Q1 Earnings and Revenue Estimates
• Positive Sentiment: Cash generation and shareholder returns were solid. Operating cash flow reached $31.4 million, cash totaled $154.6 million, and Daktronics repurchased $4.4 million of stock during the quarter. The company also announced new share-repurchase and disclosure initiatives. Daktronics Fiscal 2027 First Quarter Results
• Positive Sentiment: Management reaffirmed an ambitious growth plan. Daktronics said it remains on track toward fiscal 2028 goals of 7%–10% annual revenue growth, 10%–12% operating margin and 17%–20% return on invested capital. Backlog remained above $300 million for the sixth consecutive quarter at $311.3 million. Daktronics Fiscal 2028 Targets
• Neutral Sentiment: Orders declined but timing may explain part of the weakness. New orders fell 19.6% to $191.8 million, although management said several large transactions were expected to be booked in the second quarter.
• Negative Sentiment: Regulatory and reputational risk is pressuring the shares. Reports say the SEC is seeking information about Daktronics’ relationship with Leonard, amid a broader NBA investigation into alleged off-court income involving Leonard and the Los Angeles Clippers. Daktronics said it is cooperating with requests from the SEC and NBA; the reports do not establish wrongdoing by the company. Daktronics Says SEC and NBA Seek Information
• Negative Sentiment: Potential restructuring adds uncertainty. Daktronics is considering exiting international transportation operations, raising concerns about roughly 100 jobs connected with its Clare, Ireland facility and possible execution or restructuring costs.

About Daktronics

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.