Shares of Daktronics Inc. (NASDAQ: DAKT) skyrocketed 26.22% in pre-market trading on Wednesday following the company's announcement of better-than-expected fiscal first-quarter 2026 results. The electronic display systems manufacturer demonstrated significant improvements in profitability and order intake, surpassing analyst expectations.
Daktronics reported earnings per share of $0.33 for the quarter, handily beating the consensus estimate of $0.25. The company's revenue reached $219 million, exceeding analysts' projections of $213.41 million. Despite a slight 3.1% year-over-year decrease in sales, Daktronics showcased impressive growth in other key metrics.
The company's orders surged by 35.4% compared to the same period last year, reaching $238.5 million. This growth was primarily driven by the Live Events segment, which saw an 81% increase in orders, including projects for three major league stadiums. The High School Park and Recreation division also experienced strong demand, with orders rising 36%.
Daktronics' profitability showed marked improvement, with operating margin expanding to 10.6%, landing within the company's long-term target range. The gross profit margin increased to 29.7%, up from 26.4% in the prior year, reflecting manufacturing efficiencies and a shift towards higher-margin products.
Brad Wiemann, Daktronics' Interim President and CEO, expressed optimism about the company's performance, stating, "Fiscal 2026 is off to a great start, with robust order growth, profit expansion and progress along our transformation roadmap driving tangible results." The company also reaffirmed its three-year financial objectives, targeting 7-10% annual sales growth and operating margins of 10-12% by fiscal 2028.
Investors responded enthusiastically to the strong results and positive outlook, driving the stock price significantly higher. The substantial pre-market surge reflects growing confidence in Daktronics' ability to capitalize on opportunities in the digital display industry and deliver long-term value to shareholders.