Daktronics (NASDAQ:DAKT) Issues Earnings Results

Daktronics (NASDAQ:DAKT) issued its earnings results on Wednesday, September 2nd. 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. The company 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 last year, the company posted $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 Price Performance

Shares of DAKT traded down $0.41 during mid-day trading on Wednesday, reaching $18.23. 94,631 shares of the company’s stock were exchanged, compared to its average volume of 499,576. 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 company has a 50-day simple moving average of $18.88 and a two-hundred day simple moving average of $19.50. Daktronics has a 52-week low of $16.77 and a 52-week high of $28.27. The company has a market cap of $876.44 million, a price-to-earnings ratio of 18.65, a PEG ratio of 0.59 and a beta of 1.68.

Insider Activity

In related news, EVP Bradley Wiemann sold 4,000 shares of the company’s 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 owned 125,946 shares of the company’s stock, valued at approximately $2,420,682.12. This represents a 3.08% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. 4.60% of the stock is owned by corporate insiders.

Analyst Ratings Changes

Several equities analysts recently weighed in on the company. Wall Street Zen raised Daktronics from a “hold” rating to a “buy” rating in a research note on Saturday, September 26th. Roth Capital boosted their target price on Daktronics from $26.00 to $29.00 and gave the stock a “buy” rating in a research report on Thursday, July 2nd. Zacks Research upgraded Daktronics from a “hold” rating to a “strong-buy” rating in a research report on Monday, October 5th. Weiss Ratings reissued a “hold (c+)” rating on shares of Daktronics in a report on Tuesday, September 22nd. Finally, Craig Hallum reissued a “buy” rating and issued a $33.00 target price on shares of Daktronics in a report on Thursday, September 3rd. One analyst has rated the stock with a Strong Buy rating, two have issued a Buy rating and one has assigned a Hold rating to the company. According to MarketBeat.com, the stock has a consensus rating of “Buy” and an average target price of $31.00.

Daktronics Company Profile

Daktronics, Inc designs and manufactures electronic display systems and related control solutions. Its products include LED video displays, scoreboards, digital billboards, message centers, dynamic signage, and display-control systems used to present live information, advertising, entertainment, and public communications.

The company serves a range of markets, including professional and collegiate sports, schools, commercial businesses, transportation networks, government agencies, and other public venues.