Display manufacturer Daktronics retreats after first-quarter financials

On Wednesday, September 4, display manufacturer Daktronics saw its stock drop more than 9% after releasing previous-quarter financials. Sales fell 2.8% year over year, while earnings per share missed analysts’ expectations.

Details

On Wednesday, Daktronics stock lost 9.11% to $12.37 per share, the decline continuing in pre-market trading on Thursday. The stock is still up about 46% since the beginning of the year and almost 53% over the last 12 months.

Before the opening bell on Wednesday, Daktronics reported its results for the fiscal-2025 first quarter (ended July 27). Sales came in at $226.1 million, up 4.7% quarter over quarter but down 2.8% year over year. Earnings per share were negative $0.11, compared with positive $0.42 a year before. According to MarketWatch, analysts had expected (positive) earnings of $0.28 per share.

About Daktronics

Daktronics calls itself the world’s largest supplier of large-screen video displays, electronic scoreboards, LED text and graphics displays, and related control systems. Among other things, it supplies scoreboards and video displays for high school and college sports, professional sports installations, LED and electronic advertising signs, and solutions for the transportation sector, such as intelligent highway systems and airport flight boards. In the fiscal-2025 first quarter, Daktronics’ clients placed orders worth $176.2 million, up 11.1% year over year but down 14.4% quarter over quarter. The company attributes this to normal seasonal fluctuations.

Analyst recommendations

According to MarketWatch, the company is covered by one analyst, who has a target price for the stock of $16.75 per share, indicating 35% upside.