tiprankstipranks
Trending News
More News >
Daktronics (DAKT)
NASDAQ:DAKT

Daktronics (DAKT) AI Stock Analysis

Compare
269 Followers

Top Page

DAKT

Daktronics

(NASDAQ:DAKT)

Select Model
Select Model
Select Model
Neutral 67 (OpenAI - 4o)
Rating:67Neutral
Price Target:
$22.50
▲(28.94% Upside)
Daktronics' overall stock score is driven by strong earnings call results and positive corporate events, which are offset by concerns over profitability and valuation. The company's robust cash flow management and strategic initiatives provide a foundation for potential future growth, but high valuation metrics and profitability issues remain key risks.

Daktronics (DAKT) vs. SPDR S&P 500 ETF (SPY)

Daktronics Business Overview & Revenue Model

Company DescriptionDaktronics, Inc. designs, manufactures, markets, and sells electronic display systems and related products worldwide. It operates through five segments: Commercial, Live Events, High School Park and Recreation, Transportation, and International. The company offers video display systems, such as displays to show various levels of video, graphics, and animation; indoor and outdoor light emitting diodes (LED) video displays, including centerhung, landmark, ribbon board, and corporate office entrance displays, as well as video walls and hanging banners; mobile and modular display systems; architectural lighting and display products; indoor and outdoor scoreboards for various sports, digit displays, scoring and timing controllers, statistics software, and other related products; and timing systems for sports events primarily aquatics and track competitions, as well as swimming touchpads, race start systems, and relay take-off platforms. It also provides control components for video displays in live event applications; message displays; ITS dynamic message signs, including LED displays for road management; mass transit displays; and sound systems for indoor and outdoor sports venues. In addition, the company offers out-of-home advertising displays comprising digital billboards and street furniture displays; DataTime product line that consists of outdoor time and temperature displays; and Fuelight digit displays designed for the petroleum industry. Further, it provides ADFLOW DMS systems that include indoor networked solutions for retailers, convenience stores, and other businesses; and Venus Control Suite, Show Control, Vanguard, and others, as well as maintenance and professional services related to its products. The company sells its products through direct sales and resellers. Daktronics, Inc. was founded in 1968 and is headquartered in Brookings, South Dakota.
How the Company Makes MoneyDaktronics generates revenue primarily through the sale of its electronic display products, including LED displays and scoreboards, as well as through installation services. The company has several key revenue streams: product sales, service and maintenance contracts, and software solutions for display management. Additionally, Daktronics benefits from long-term partnerships with major sports leagues and organizations, which provide a consistent flow of business for stadium and arena installations. The company also earns revenue from advertising displays used in commercial settings. Factors contributing to its earnings include technological advancements in display systems, increasing demand for digital advertising, and expansion into international markets.

Daktronics Earnings Call Summary

Earnings Call Date:Dec 10, 2025
(Q2-2026)
|
% Change Since: |
Next Earnings Date:Mar 04, 2026
Earnings Call Sentiment Positive
Daktronics reported strong revenue and order growth across multiple segments, with a notable increase in product backlog and improved profitability. However, challenges were presented by increased tariff expenses and a seasonally slow upcoming quarter.
Q2-2026 Updates
Positive Updates
Strong Revenue Growth
Daktronics delivered a third consecutive quarter of top-line growth, with revenue increasing by 12% compared to the previous year.
Record Product Backlog
The company reported a product backlog of $321 million, which represents a 36% increase year-over-year, providing a multi-quarter revenue runway.
Live Events Segment Success
Daktronics achieved 26.5% order growth in the Live Events segment from last year, winning 6 Major League sports projects and securing large orders related to MLB and MLS stadiums.
International Segment Growth
The International segment saw a 23.6% increase in orders from last year, with strong demand in the Middle East and European regions.
Transportation Business Growth
Orders grew by 15% year-over-year in the Transportation business, driven by increased demand in Intelligent Transportation Systems and aviation.
Net Income and Operating Margin Improvement
Net income rose 25.4% on an adjusted basis, and the operating margin was reported at 9.4%, close to the target range of 10% to 12.5%.
Cash and Share Repurchase Position
Daktronics ended the quarter with a net cash balance of $138.3 million, an increase of about 20% from the year-end position, and announced a share repurchase capacity of $25.7 million.
Negative Updates
Tariff Expenses Impact
The company incurred $8.8 million of tariff expenses in the second quarter, a significant increase compared to $1.5 million in the previous year.
Seasonally Slower Third Quarter
The third quarter is expected to be seasonally slower due to holidays, which may impact revenue and income patterns.
Decrease in Commercial Segment Orders
Orders in the Commercial segment decreased by 5% year-over-year, primarily driven by fewer large projects in the outdoor spectacular business.
Company Guidance
During the Daktronics second quarter fiscal 2026 earnings call, the company reported robust financial performance and strategic growth initiatives. Key highlights included a 12% increase in orders across all business segments compared to the previous year, with a notable 36% increase in product backlog to $321 million, providing a multi-quarter revenue runway. The company achieved a third consecutive quarter of top-line growth, with operating income surpassing $20 million. Live Events and International segments experienced significant growth, contributing to a 26.5% order increase in Major League sports projects and a 23.6% rise in international orders. The company's gross profit margin stood at 27%, while operating margin reached 9.4%, approaching the target range of 10% to 12.5%. Despite $8.8 million in tariff expenses, Daktronics maintained operational efficiency and value-based pricing strategies. The announcement of a new manufacturing facility in Saltillo, Mexico, aims to enhance production capacity and flexibility, supporting the company's projected annual growth rate of 7% to 10% by fiscal year 2028.

Daktronics Financial Statement Overview

Summary
Income Statement
65
Positive
Balance Sheet
72
Positive
Cash Flow
78
Positive
Breakdown
Income Statement
Total Revenue
Gross Profit
EBITDA
Net Income
Balance Sheet
Total Assets
Cash, Cash Equivalents and Short-Term Investments
Total Debt
Total Liabilities
Stockholders Equity
Cash Flow
Free Cash Flow
Operating Cash Flow
Investing Cash Flow
Financing Cash Flow

Daktronics Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price17.45
Price Trends
50DMA
19.03
Negative
100DMA
18.96
Negative
200DMA
16.52
Positive
Market Momentum
MACD
0.06
Negative
RSI
49.57
Neutral
STOCH
35.70
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DAKT, the sentiment is Neutral. The current price of 17.45 is below the 20-day moving average (MA) of 18.72, below the 50-day MA of 19.03, and above the 200-day MA of 16.52, indicating a neutral trend. The MACD of 0.06 indicates Negative momentum. The RSI at 49.57 is Neutral, neither overbought nor oversold. The STOCH value of 35.70 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for DAKT.

Daktronics Peers Comparison

Overall Rating
UnderperformOutperform
Sector (―)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
73
Outperform
$1.27B22.2810.98%0.37%3.70%1.68%
72
Outperform
$1.59B43.513.37%1.44%-2.93%-40.33%
72
Outperform
$933.08M49.296.58%0.22%-2.88%26.14%
70
Neutral
$574.91M23.0111.03%1.08%22.35%2.59%
67
Neutral
$917.43M138.792.64%-6.13%-76.92%
58
Neutral
$1.68B-25.82-5.34%-4.87%-235.48%
* Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
DAKT
Daktronics
18.82
2.12
12.69%
ALNT
Allient
55.07
31.67
135.34%
BHE
Benchmark Electronics
44.52
0.07
0.16%
CTS
CTS
43.83
-8.18
-15.73%
LYTS
Lsi Industries
18.49
-0.14
-0.75%
ROG
Rogers
93.65
-6.30
-6.30%

Daktronics Corporate Events

Daktronics Reports Strong Start to Fiscal 2026
Sep 11, 2025

Daktronics, Inc., a global leader in dynamic video communication displays and control systems, has reported its fiscal 2026 first-quarter results, showcasing a strong start to the year. The company, known for its innovative display solutions across various sectors, continues to maintain its position as a key player in the industry.

Daktronics Reports Strong Start to Fiscal 2026
Sep 11, 2025

Daktronics’ recent earnings call revealed a generally positive sentiment, as the company reported a strong start to fiscal 2026. The growth in orders, particularly in the live events and high school park and recreation sectors, has contributed to improved financial performance and gross margins. Despite facing challenges in the commercial and transportation sectors and a decline in international orders from 2025 levels, the positive developments were deemed to outweigh these challenges.

Executive/Board ChangesShareholder Meetings
Daktronics Approves 2025 Stock Incentive Plan at Meeting
Neutral
Sep 5, 2025

On September 3, 2025, Daktronics, Inc. held its Annual Meeting of Stockholders, where the 2025 Stock Incentive Plan was approved, replacing the 2020 Plan. The meeting also saw the election of directors, approval of executive compensation, and ratification of Deloitte & Touche, LLP as the independent registered public accounting firm for the 2026 fiscal year. The approval of the 2025 Plan is expected to facilitate future equity grants, impacting the company’s operational flexibility and stakeholder engagement.

The most recent analyst rating on (DAKT) stock is a Buy with a $18.50 price target. To see the full list of analyst forecasts on Daktronics stock, see the DAKT Stock Forecast page.

Executive/Board Changes
Daktronics Announces Executive Team Changes and Appointments
Neutral
Aug 1, 2025

On July 28, 2025, Daktronics, Inc. announced changes in its executive team, with Sheila M. Anderson ceasing to be the principal accounting officer, while Howard I. Atkins was appointed to the role without additional compensation. Additionally, the company approved a new performance-based restricted stock unit agreement for certain executives, emphasizing profit and revenue growth over a three-year period. Furthermore, a termination agreement was reached with Interim President and CEO Brad T. Wiemann, detailing his transition and retirement plans, including severance benefits.

The most recent analyst rating on (DAKT) stock is a Hold with a $24.00 price target. To see the full list of analyst forecasts on Daktronics stock, see the DAKT Stock Forecast page.

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.Date of analysis: Dec 11, 2025