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Daktronics
(NASDAQ:DAKT)
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Rating:72Outperform
Price Target:
$21.50
▲(12.51% Upside)
Action:Reiterated
Date:09/06/26
The score is driven primarily by strong fundamentals (profitability recovery, low leverage, and positive free cash flow) and a constructive earnings outlook with reaffirmed long-term targets. Offsetting these strengths are weak near-term technical signals (below major moving averages with negative MACD) and noted operational/external risks (order timing, input-cost inflation, and investigation-related information requests).
Positive Factors
Profitability recovery
The return to meaningful operating and net profitability shows that Daktronics is converting renewed demand and operational improvements into earnings. If maintained, stronger margins and positive earnings provide resources to fund product development, capacity investments, and service expansion over coming quarters.
Negative Factors
Project timing and backlog volatility
Large project-based contracts can make revenue visibility uneven when purchase orders move between quarters. The sequential backlog decline and delayed substantial orders create execution and forecasting volatility, potentially causing revenue and capacity utilization to fluctuate even when the underlying pipeline remains active.
Read all positive and negative factors
Positive Factors
Negative Factors
Profitability recovery
The return to meaningful operating and net profitability shows that Daktronics is converting renewed demand and operational improvements into earnings. If maintained, stronger margins and positive earnings provide resources to fund product development, capacity investments, and service expansion over coming quarters.
Read all positive factors
Daktronics Key Performance Indicators (KPIs)
Any
Net Sales By Segment
Reveals the revenue generated from different business segments, highlighting which areas are driving growth and where there may be challenges or opportunities for expansion.
Reveals the revenue generated from different business segments, highlighting which areas are driving growth and where there may be challenges or opportunities for expansion.
Data provided by:
The Fly
The FlyDaktronics (DAKT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$945.98M
Dividend Yield3.9%
Average Volume (3M)575.12K
Price to Earnings (P/E)19.2
Beta (1Y)1.41
Revenue Growth14.00%
EPS Growth308.50%
CountryUS
Employees2,558
SectorTechnology
Sector Strength88
IndustryHardware, Equipment & Parts
Share Statistics
EPS (TTM)0.99
Shares Outstanding48,092,650
10 Day Avg. Volume926,567
30 Day Avg. Volume575,121
Financial Highlights & Ratios
PEG Ratio-0.04
Price to Book (P/B)3.18
Price to Sales (P/S)1.14
P/FCF Ratio27.89
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$31.00Price Target Upside62.22% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)1.19
Revenue Forecast (FY)$897.13M
Daktronics Business Overview & Revenue Model
Company Description
Daktronics, Inc. is a global leader specializing in the design, manufacture, marketing, and sale of advanced electronic display systems and associated products. Its operations are organized into five distinct segments: Commercial, Live Events, Hig...
How the Company Makes Money
Daktronics primarily makes money by selling and delivering electronic display solutions and associated services. Its revenue model is centered on (1) product/system sales: customers purchase physical LED display hardware (e.g., scoreboards, video ...
Daktronics Earnings Call Summary
Earnings Call Date:Sep 02, 2026
(Q1-2027)
| % Change Since: |
Next Earnings Date:Dec 15, 2026
Earnings Call Sentiment Positive
The call conveyed a strongly positive outlook, supported by revenue, operating income, EPS, margin, cash flow, backlog, pipeline, end-market wins, product deployments, and reaffirmed long-term targets. Management also described ongoing investments in manufacturing, procurement, automation, software, services, and talent. The main challenges were order timing, lower year-over-year bookings, input-cost inflation, higher operating expenses, a potential exit from the international transportation business, and external information requests, but these did not outweigh the reported operating momentum and strategic progress.Positive Updates
Strong First-Quarter Financial Performance
Daktronics reported 7.1% net sales growth, 7.2% operating income growth to $24.9 million, and earnings per share of $0.40, which increased 21.2% year over year and was the company's highest quarterly EPS in the past three years. Results were achieved despite the quarter being one week shorter than the prior-year quarter.
Negative Updates
Lower Order Bookings Due to Timing
Orders booked in the first quarter were down from a year ago. Management attributed the year-over-year backlog and bookings comparison mainly to order timing, with several substantial live-events negotiations expected to be delayed from Q1 into the latter part of Q2.
Read all updates
Q1-2027 Updates
Positive
Negative
Strong First-Quarter Financial Performance
Daktronics reported 7.1% net sales growth, 7.2% operating income growth to $24.9 million, and earnings per share of $0.40, which increased 21.2% year over year and was the company's highest quarterly EPS in the past three years. Results were achieved despite the quarter being one week shorter than the prior-year quarter.
Read all positive updates
Company Guidance
Management expects purchase orders for substantial projects in Q2, the Mexico plant’s first major narrow pixel pitch production run to ship in late Q2, Camino 8 to be installed in 10+ venues starting this fall, several more quarters of tariff refunds, and selectively raised product prices to affect margins starting in the second quarter and throughout the year; annual CapEx is expected to be in the $20 million range over the next few years, operational excellence programs are expected to yield solid results starting in the second half of this year more fully in fiscal 2028, and substantial orders should generate revenue throughout the balance of the year mostly beginning in the third quarter. The company affirmed its fiscal 2028 targets of 7%-10% revenue 3 year CAGR, operating margin in the 10%-12% range, and ROIC in the 17%-20% range.Daktronics Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
85
Very Positive
Cash Flow
72
Positive
| Breakdown | TTM | Apr 2026 | Apr 2025 | Apr 2024 | Apr 2023 | Apr 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 854.30M | 838.71M | 756.48M | 818.08M | 754.20M | 610.97M |
| Gross Profit | 235.53M | 229.01M | 195.49M | 222.44M | 151.35M | 116.70M |
| EBITDA | 77.98M | 76.44M | 13.70M | 104.86M | 42.96M | 16.50M |
| Net Income | 48.34M | 45.38M | -10.12M | 34.62M | 6.80M | 592.00K |
Balance Sheet | ||||||
| Total Assets | 607.38M | 554.41M | 502.89M | 527.88M | 468.10M | 440.88M |
| Cash, Cash Equivalents and Short-Term Investments | 154.59M | 131.64M | 127.51M | 81.30M | 24.52M | 21.16M |
| Total Debt | 15.14M | 18.13M | 16.80M | 56.65M | 20.00M | 2.31M |
| Total Liabilities | 289.75M | 253.66M | 230.96M | 289.09M | 267.23M | 249.31M |
| Stockholders Equity | 317.63M | 300.75M | 271.93M | 238.79M | 200.88M | 191.56M |
Cash Flow | ||||||
| Free Cash Flow | 39.80M | 34.30M | 78.22M | 46.26M | -10.36M | -47.41M |
| Operating Cash Flow | 54.55M | 49.22M | 97.71M | 63.24M | 15.02M | -27.04M |
| Investing Cash Flow | -17.93M | -19.64M | -23.78M | -21.31M | -25.39M | -31.38M |
| Financing Cash Flow | -19.61M | -26.24M | -27.45M | 15.12M | 17.57M | -3.58M |
Daktronics Technical Analysis
Negative
19.11
Price Trends
19.90
Negative
19.88
Negative
20.61
Negative
Market Momentum
-0.22
Positive
41.78
Neutral
13.16
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DAKT, the sentiment is Negative. The current price of 19.11 is below the 20-day moving average (MA) of 19.54, below the 50-day MA of 19.90, and below the 200-day MA of 20.61, indicating a bearish trend. The MACD of -0.22 indicates Positive momentum. The RSI at 41.78 is Neutral, neither overbought nor oversold. The STOCH value of 13.16 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DAKT.
Daktronics Risk Analysis
Daktronics disclosed 41 risk factors in its most recent earnings report. Daktronics reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Daktronics Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $2.31B | 74.96 | 2.61% | ― | 4.90% | ― | |
73 Outperform | $1.62B | 23.20 | 12.52% | 0.28% | 8.48% | 13.14% | |
72 Outperform | $945.98M | 19.20 | 15.98% | 3.90% | 14.00% | 308.50% | |
71 Outperform | $1.63B | 56.09 | 9.43% | 0.15% | 10.62% | 98.88% | |
66 Neutral | $2.66B | 50.26 | 4.81% | 0.91% | 8.87% | 39.10% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
52 Neutral | $729.20M | 28.27 | 7.51% | 1.02% | 20.23% | -15.15% |
* Technology Sector Average
DAKT
Daktronics
19.05
-1.93
-9.20%
ALNT
Allient
95.91
50.35
110.50%
BHE
Benchmark Electronics
74.39
35.00
88.86%
CTS
CTS
56.14
14.82
35.86%
LYTS
Lsi Industries
19.60
-2.73
-12.24%
ROG
Rogers
129.68
50.33
63.43%
Daktronics Corporate Events
Business Operations and StrategyExecutive/Board ChangesStock BuybackFinancial DisclosuresRegulatory Filings and Compliance
Daktronics Launches New Share Repurchase and Disclosure Initiatives
Positive
Sep 2, 2026
Daktronics reported strong fiscal 2027 first‑quarter results for the period ended August 1, 2026, with sales up 7.1% to $234.6 million and operating income rising to $24.9 million, producing a 10.6% operating margin and a 21.2% increase in d...
Business Operations and StrategyExecutive/Board Changes
Daktronics Board Adopts 2027 Executive Incentive Program
Positive
Jul 17, 2026
On July 14, 2026, Daktronics’ board approved a fiscal 2027 executive compensation program that links annual cash incentives for key officers to operating income and revenue, with payouts ranging from 50% to 150% of target and a possible 20% ...
Business Operations and StrategyStock BuybackFinancial Disclosures
Daktronics Delivers Record Fiscal 2026 Results, Boosts Buyback
Positive
Jun 24, 2026
Daktronics reported record fiscal 2026 results on June 24, 2026, with net sales rising 10.9% year over year to $838.7 million and orders climbing 10.2% to $860.8 million for the 53‑week year ended May 2, 2026. The company returned to solid p...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.