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

Daktronics (NASDAQ:DAKT) issued its quarterly earnings data on Wednesday, September 2nd. The technology company reported $0.40 earnings per share for the quarter, topping analysts’ consensus estimates of $0.35 by $0.05, FiscalAI reports. The business had revenue of $234.57 million during the quarter, compared to analysts’ expectations of $230.27 million. Daktronics had a net margin of 5.66% and a return on equity of 18.05%. During the same period in the previous year, the company 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 Stock Performance

Daktronics stock traded up $0.32 during mid-day trading on Tuesday, reaching $17.98. The company had a trading volume of 479,214 shares, compared to its average volume of 508,286. The company has a quick ratio of 1.66, a current ratio of 2.17 and a debt-to-equity ratio of 0.17. The firm has a market cap of $864.66 million, a price-to-earnings ratio of 18.35, a PEG ratio of 0.56 and a beta of 1.68. The company has a 50 day moving average of $19.53 and a 200-day moving average of $19.88. Daktronics has a 52 week low of $17.09 and a 52 week high of $28.27.

Insider Activity

In related news, insider Sheila Anderson sold 3,636 shares of the business’s stock in a transaction dated Wednesday, July 1st. The stock was sold at an average price of $20.01, for a total transaction of $72,756.36. Following the transaction, 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 sale was disclosed in a legal filing with the SEC, which is available at this link. Also, EVP Bradley T. Wiemann sold 4,000 shares of Daktronics stock in a transaction that occurred on Friday, July 17th. The stock was sold at an average price of $19.22, for a total value of $76,880.00. Following the sale, the executive vice president directly owned 125,946 shares in the company, valued at $2,420,682.12. The trade was a 3.08% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders own 4.60% of the company’s stock.

Analyst Upgrades and Downgrades

A number of research analysts have weighed in on DAKT shares. Craig Hallum reissued a “buy” rating and set a $33.00 target price on shares of Daktronics in a research report on Thursday, September 3rd. Zacks Research raised Daktronics from a “strong sell” rating to a “hold” rating in a research report on Monday, June 15th. Weiss Ratings upgraded Daktronics from a “hold (c)” rating to a “hold (c+)” rating in a research note on Thursday, June 25th. Roth Capital boosted their price objective on 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 downgraded Daktronics from a “buy” rating to a “hold” rating in a research note on Saturday, September 5th. Two investment analysts have rated the stock with a Buy rating and two have given a Hold rating to the company’s stock. Based on data from MarketBeat.com, the company has an average rating of “Moderate Buy” and an average target price of $31.00.

Daktronics Company Profile

Daktronics, Inc designs, manufactures and sells electronic display and control systems. Its products include large-format LED video displays, digital scoreboards, message centers, digital signage, display controllers and related audio systems.

The company serves sports and entertainment venues, schools and universities, commercial and retail organizations, transportation facilities, government institutions and other customers that use visual communications. Daktronics also provides installation, maintenance, content management and other support services for its display systems.

Founded in 1968 and headquartered in Brookings, South Dakota, Daktronics serves customers in the United States and international markets.