Sidoti Has Pessimistic Outlook of Daktronics Q2 Earnings

Daktronics, Inc. (NASDAQ:DAKT) – Sidoti decreased their Q2 2027 earnings estimates for Daktronics in a report issued on Thursday, September 3rd. Sidoti analyst A. Soderstrom now anticipates that the technology company will post earnings per share of $0.31 for the quarter, down from their prior forecast of $0.39. The consensus estimate for Daktronics’ current full-year earnings is $1.22 per share. Sidoti also issued estimates for Daktronics’ Q3 2027 earnings at $0.14 EPS, Q4 2027 earnings at $0.40 EPS and FY2027 earnings at $1.25 EPS.

Daktronics (NASDAQ:DAKT) last issued its quarterly earnings data on Wednesday, September 2nd. The technology company reported $0.40 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.35 by $0.05. Daktronics had a net margin of 5.66% and a return on equity of 18.05%. The business had revenue of $234.57 million during the quarter, compared to the consensus estimate of $230.27 million. During the same period in the prior year, the firm posted $0.33 EPS.

Other analysts also recently issued reports about the company. Roth Capital increased their price target on Daktronics from $26.00 to $29.00 and gave the company a “buy” rating in a research report on Thursday, July 2nd. Craig Hallum reissued a “buy” rating and issued a $33.00 price objective on shares of Daktronics in a research report on Thursday. Weiss Ratings upgraded Daktronics from a “hold (c)” rating to a “hold (c+)” rating in a research note on Thursday, June 25th. Wall Street Zen lowered Daktronics from a “strong-buy” rating to a “buy” rating in a research report on Saturday, July 4th. Finally, Zacks Research upgraded Daktronics from a “strong sell” rating to a “hold” rating in a research note on Monday, June 15th. Two investment 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 company has a consensus rating of “Moderate Buy” and an average target price of $31.00.

Daktronics Price Performance

Shares of NASDAQ DAKT opened at $19.48 on Friday. Daktronics has a twelve month low of $17.02 and a twelve month high of $28.27. The stock’s 50 day moving average price is $19.93 and its 200-day moving average price is $20.61. The company has a market capitalization of $940.49 million, a PE ratio of 19.88, a PEG ratio of 0.63 and a beta of 1.68. The company has a quick ratio of 1.74, a current ratio of 2.17 and a debt-to-equity ratio of 0.17.

Institutional Inflows and Outflows

A number of institutional investors have recently made changes to their positions in DAKT. Diamond Hill Capital Management LLC Investment Advisor bought a new position in Daktronics in the 2nd quarter worth approximately $1,504,000. BlackRock Inc. bought a new stake in Daktronics during the 2nd quarter valued at $68,158,000. Oppenheimer Asset Management Inc. bought a new stake in Daktronics during the 2nd quarter valued at $1,001,000. Renaissance Technologies LLC lifted its position in shares of Daktronics by 13.1% during the first quarter. Renaissance Technologies LLC now owns 822,854 shares of the technology company’s stock worth $16,087,000 after acquiring an additional 95,393 shares in the last quarter. Finally, Hillsdale Investment Management Inc. lifted its position in shares of Daktronics by 161.2% during the first quarter. Hillsdale Investment Management Inc. now owns 392,089 shares of the technology company’s stock worth $7,665,000 after acquiring an additional 241,969 shares in the last quarter. Hedge funds and other institutional investors own 61.69% of the company’s stock.

Insider Buying and Selling

In related news, EVP Bradley Wiemann sold 4,000 shares of Daktronics 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 sale, the executive vice president owned 125,946 shares of the company’s stock, valued at approximately $2,420,682.12. The trade was a 3.08% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, insider Sheila Anderson sold 3,636 shares of Daktronics stock in a transaction that occurred on Wednesday, July 1st. The stock was sold at an average price of $20.01, for a total transaction 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. This trade represents a 6.99% decrease in their position. The SEC filing for this sale provides additional information. 4.60% of the stock is owned by corporate insiders.

Daktronics News Summary

Here are the key news stories impacting Daktronics this week:

• Positive Sentiment: Solid earnings beat and revenue growth: Fiscal 2027 first-quarter EPS was $0.40, ahead of the $0.35 consensus and up 21.2% year over year. Revenue rose 7.1% to $234.6 million, exceeding expectations, while operating income increased to $24.9 million. Daktronics Beats Q1 Earnings and Revenue Estimates
• Positive Sentiment: Healthy liquidity and shareholder returns: Daktronics generated $31.4 million in operating cash flow, ended the quarter with approximately $154.6 million in cash, and repurchased $4.4 million of stock. Its $311.3 million backlog remained above $300 million for the sixth consecutive quarter. Daktronics Fiscal 2027 First Quarter Results
• Positive Sentiment: Long-term plan remains intact: Management said it is tracking toward fiscal 2028 goals of 7%–10% annual revenue growth, 10%–12% operating margins, and 17%–20% return on invested capital. The company is also evaluating a possible exit from international transportation operations. Daktronics Fiscal 2028 Targets
• Neutral Sentiment: Orders were temporarily weaker: New orders declined 19.6% to $191.8 million, although management attributed much of the shortfall to several large transactions expected to be booked in the second quarter.
• Negative Sentiment: SEC and NBA investigations create uncertainty: Federal regulators and the NBA are seeking information about Daktronics’ relationship with Kawhi Leonard and alleged off-court compensation involving Leonard and the Los Angeles Clippers. Daktronics said it is cooperating. Potential legal, regulatory, reputational, or financial consequences could pressure the stock. Daktronics Says SEC and NBA Seek Information

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.