Stock Information
symbol line chart

DAKTDaktronics Inc.

Upcoming Earnings

We were not able to find an announced earnings date for this symbol yet. Check back again later

Company Info

CEO

Reece A. Kurtenbach

Location

South Dakota, USA

Exchange

Nasdaq

Website

https://daktronics.com

Summary

Daktronics, Inc.

Company Info

CEO

Reece A. Kurtenbach

Location

South Dakota, USA

Exchange

Nasdaq

Website

https://daktronics.com

Summary

Daktronics, Inc.

AI Insights for DAKT
2 min read

Quick Summary

Daktronics Inc. is a leading American company specializing in the design, manufacture, marketing, and sale of electronic display systems. The company serves a range of customer segments, including commercial enterprises, live events venues, high schools and recreational facilities, transportation authorities, and international clients. Daktronics provides end-to-end solutions from product development to installation and ongoing service. Its displays are used for advertising, information dissemination, entertainment, and management of events and transportation operations. With a workforce of approximately 2,480 employees, Daktronics is recognized globally for its expertise in large-format LED and digital display technology.

The Bull Case

  • Daktronics' primary strengths include its strong brand reputation and leadership in the electronic and digital display industry.
  • The company has a global footprint, with a diversified portfolio of products serving multiple end markets.
  • Recent operational improvements and efficiency gains have contributed to steady margin expansion.
  • Investments into innovation, such as the recent MicroLED acquisition, position Daktronics as a technology leader within high-growth display segments.
  • Furthermore, the company's strong order backlog and cash position provide stability and the ability to fund future growth and shareholder returns.

The Bear Case

  • Despite notable strengths, Daktronics operates an asset-heavy and capital-intensive business model, which can lead to weak and inconsistent returns, cash flow volatility, and periods of margin pressure.
  • Tariff costs and supply chain challenges pose ongoing risks to profitability.
  • The company has faced historically inconsistent financial performance, with periods of net losses, as reflected in negative EPS and net income figures.
  • Leadership transitions and ongoing digital and business transformation efforts may introduce execution risks.
  • Finally, valuation concerns exist given relatively high EV/EBITDA multiples and the cyclical nature of end markets.

Key Risks

  • The company faces several risks including macroeconomic uncertainty, which may dampen customer spending on large display projects.
  • Intense competition with global and regional players could pressure prices and margins, while persistent supply chain disruptions and tariff costs can erode profitability.
  • Technological obsolescence remains a risk, given the fast pace of display innovation.
  • Execution risks associated with leadership changes and business transformation efforts may affect near-term stability.

What to Watch

UpcomingThe most recent quarter was marked by significant order and backlog growth, including a 35% surge in orders and a backlog that reached $360.3 million.
UpcomingGross margin rose to nearly 30%, and after-tax net income showed a strong improvement compared to a loss in the prior year.
UpcomingOperational enhancements included the commissioning of a new manufacturing plant in New Mexico, aimed at supporting future growth and expanding U.S.-based production.
ExpectedFor the upcoming quarter, expectations are for continued modest revenue growth, with forecasts suggesting revenue will rise by about 0.87% and EPS will be positive yet slightly below the recent peak, at around $0.27.

Price Drivers

  • Daktronics' stock price is driven primarily by quarterly earnings, order and backlog growth, gross and operating margin improvements, and successful execution of large orders, especially in international and commercial segments.
  • The company's digital transformation initiatives and investments in automation and new technologies, such as MicroLED, are increasingly relevant to investor sentiment.
  • Macroeconomic events affecting capex cycles, supply chain costs (notably tariffs), and U.S.
  • and international infrastructure spending also play significant roles.

Recent News

  • Recent Daktronics news has highlighted robust order and backlog growth, improved margins, a major acquisition to accelerate MicroLED technology development, and upcoming leadership changes with a new CEO effective February 2026.
  • The company shared positive financial results, including strong cash generation and better-than-expected EPS and revenue in the latest quarter, sparking a notable share price increase.
  • There is ongoing focus on international expansion, live events, and commercial segments, while the company continues to pursue its automation and digital transformation goals.
  • Analysts generally hold a positive view on the company’s growth prospects but remain cautious due to valuation and business model risks.

Market Trends

  • Broad market trends affecting Daktronics include increasing global demand for digital and interactive displays in advertising, transportation, and entertainment venues.
  • There is a significant shift towards high-efficiency, high-brightness display technologies such as MicroLED and NPP, driven by energy efficiency and image quality expectations.
  • Capital spending cycles in the commercial and public sectors, including infrastructure upgrades, influence display industry growth rates.
  • The market’s move towards automation and digital transformation is pushing companies to innovate rapidly.

AI-generated summary. Not investment advice. DYOR.

Community Research

Research from investors like you

Be the first to share your analysis on DAKT

Help fellow investors make informed decisions by sharing your research on fundamentals, catalysts, and outlook.

Topics: Company overview • Products • Competitors • Strengths & Risks

Symbol's posts

No more topics to show