Stock Track | Daktronics Soars 5% Pre-Market Despite Q4 Loss as Orders Surge and Future Outlook Remains Positive

Stock Track
Jun 25

Shares of Daktronics (DAKT) are soaring 5.09% in pre-market trading on Wednesday, as investors look past the company's fourth-quarter loss and focus on strong order growth and positive future outlook.

The digital display maker reported mixed results for its fiscal fourth quarter. While revenue fell 20% year-over-year to $172.55 million and the company posted a quarterly loss of $9.43 million, Daktronics managed to beat earnings expectations with an adjusted EPS of $0.18, surpassing the estimated $0.15. The highlight of the report was a 17% year-over-year increase in Q4 orders, signaling strong market demand for the company's products.

Despite facing challenges from tariff uncertainties, Daktronics has implemented measures to mitigate their impact, including selective price adjustments and escalation clauses in contracts. The company also reaffirmed its three-year forward objectives, targeting 7-10% sales growth, 10-12% operating margin, and 17-20% return on invested capital (ROIC). This positive outlook, combined with strong demand in the Commercial, High School Park and Recreation, and International business units, appears to be driving investor optimism and contributing to the stock's pre-market rally.

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