Daktronics Inc

Daktronics reported strong first-quarter fiscal 2027 results, with net sales up 7.1%, operating income up 7.2%, and EPS of $0.40, the highest in three years. The company's Mexico plant completed its first major production run of narrow pixel pitch products, and its Camino 8 graphics engine is being deployed at more than ten NHL, MLS, and NCAA venues. Daktronics is considering exiting its highly customized international transportation business, which could affect its Ireland facility, and has entered a collective redundancy consultation process. The company affirmed its fiscal 2028 targets of 7-10% revenue CAGR, 10-12% operating margin, and 17-20% ROIC.

Daktronics reported fiscal 2027 first-quarter results with net sales up 7.1% year over year, operating income rising 7.2% to $24.9 million, and earnings per share climbing 21.2% to $0.40, the highest quarterly EPS in three years. Gross margin expanded 80 basis points to 30.5%, and backlog stood at $311 million, exceeding $300 million for the sixth consecutive quarter. Management attributed lower bookings to project timing and expects several substantial purchase orders later in Q2, with revenue contributions beginning mostly in Q3. The company plans to increase annual capital expenditures to about $20 million for automation and manufacturing capacity, while implementing price increases and procurement savings to offset rising input costs. Daktronics also reaffirmed its fiscal 2028 targets of 7% to 10% revenue CAGR, 10% to 12% operating margins, and 17% to 20% ROIC.

Daktronics reported a significant reduction in warranty costs of approximately $2 million compared to both the prior quarter and the same period last year, helping to deliver positive bottom-line results despite declining revenues. The company is executing a strategic redesign of its entire outdoor display product family to increase manufacturing standardization while maintaining customer flexibility, with shipments expected to begin in the fourth quarter of fiscal 2010. Management noted extremely aggressive pricing from competitors across most business areas, which they believe is unsustainable but disruptive in the short term, and the overall win rate is down slightly. International quoting activity has increased significantly over the last six to eight months, and the company recently secured notable orders for a shopping mall in Australia and a theater in Paris. Product development spending is expected to rise and likely exceed 5% of sales in the short term, while capital expenditures for the year are projected in the $15 million to $17 million range.

Zacks Investment Research highlights four technology stocks trading below $20 per share that are well-positioned for growth in the second half of 2026, each carrying a Zacks Rank of #1 (Strong Buy) or #2 (Buy). Unisys, priced at $3.75, saw its 2026 earnings estimate rise 21.3% to 74 cents per share over the past 60 days, supported by a 45% surge in first-quarter new business total contract value and an expanded backlog of $2.96 billion. Daktronics, at $19.91, reported record fiscal 2026 sales of $838.7 million and a $356.2 million backlog, with its fiscal 2027 earnings estimate edging up 0.8% to $1.21 per share. PagerDuty, trading at $9.98, raised its full-year fiscal 2027 non-GAAP EPS guidance to $1.27-$1.32 and announced a $100 million share repurchase program, while its fiscal 2027 earnings estimate climbed 4% to $1.30 per share. RF Industries, at $17.81, posted fiscal second-quarter bookings of $26.3 million and a backlog of $20 million, with its fiscal 2026 earnings estimate rising 19% to 69 cents per share, aided by inclusion in the Russell 3000 Index.

Zacks Investment Research highlights three stocks with strong value characteristics and a Zacks Rank #1 as of June 29. Daktronics, an electronic display solutions provider, trades at a price-to-earnings ratio of 15.02 versus its industry's 17.30 and holds a Value Score of B. ORIX Corporation, a financial services company, has a P/E of 8.26 compared with the S&P 500's 22.41 and a Value Score of A. TD SYNNEX Corporation, an IT distribution company, carries a P/E of 15.51 against the S&P 500's 22.41 and a Value Score of B.

Daktronics reported fourth-quarter Non-GAAP earnings per share of $0.27, beating analyst estimates by $0.12. Revenue came in at $208.6 million, a 20.9% increase year-over-year, exceeding expectations by $3.33 million. New orders for products and services in the quarter totaled $222.0 million, down 7.7% from the exceptionally strong fourth quarter of fiscal 2025, while full-year new orders reached a record $860.8 million, up 10.2% compared to fiscal 2025. The company's product backlog stood at $356.2 million, up 4.3% from the prior year-end.

Daktronics posted record net sales of $838.7 million for fiscal 2026, up 10.9 percent from the prior year, and record orders of $860.8 million, a 10.2 percent increase. Fourth-quarter sales rose 20.9 percent to $208.6 million, while adjusted earnings per share reached $0.27, a 50 percent jump from the year-earlier period. The product backlog climbed to $356.2 million at year-end, supported by strong demand in the Live Events business unit, which won five Major League Baseball stadium installations since the third quarter of fiscal 2025. Operating margin expanded to 7.3 percent for the full year, driven by value-based pricing, operational efficiencies, and improved supply chain execution. The company generated $49.2 million in cash from operations and repurchased 1.4 million shares for $25.4 million during the year.