Overview

• U.S. display systems maker's fiscal Q4 revenue rose 21%, beating analyst expectations

• Adjusted EPS for fiscal Q4 climbed 50% yr/yr, beating analyst expectations

• Company repurchased $25.4 mln in shares during fiscal 2026

Outlook

• Company targets 7-10% revenue CAGR, 10-12% operating margin, and 17-20% ROIC by fiscal 2028

• Daktronics enters fiscal 2027 with a $356.2 mln backlog and strong pipeline across all segments

• Company plans to focus on organic growth, operational excellence, and disciplined capital deployment in fiscal 2027

Result Drivers

• BUSINESS UNIT GROWTH - Q4 sales growth was driven by Live Events, High School Park and Recreation, and Transportation units

• MARGIN EXPANSION - Margin gains attributed to operational efficiency, supply chain improvements, inventory management, and value-based pricing

• WARRANTY RECAPTURE - Gross margin benefited from recapture of a prior period warranty provision

Company press release: ID:nGNX7N3mJ8

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the electronic equipment & parts peer group is "buy"

• Wall Street's median 12-month price target for Daktronics Inc is $32.00, about 59.1% above its June 23 closing price of $20.11

• The stock recently traded at 16 times the next 12-month earnings vs. a P/E of 22 three months ago

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