By Connor Hart
Daktronics swung to a loss and logged lower sales in its fiscal fourth quarter, sending shares tumbling in pre-market trading.
The company, which manufactures electronic scoreboards, display systems and large-screen video displays, didn't provide an outlook for the current year, citing it can't determine the ultimate impact of tariffs at this time. Still, it noted early turnaround efforts are beginning to bear fruit.
Shares fall 8.4%, to $13.92, ahead of Wednesday's opening bell.
Daktronics posted a loss of $9.4 million for its three months ended April 26, compared with a profit of $2.5 million in last year's comparable quarter.
On a quarterly basis, the company reported a loss of 19 cents a share. Analysts surveyed by FactSet expected per-share earnings of 15 cents.
Sales fell 20% to $172.6 million, missing the $194 million that Wall Street modeled.
Interim Chief Executive Brad Wiemann said the company has completed the analysis and planning phase of its business transformation, which it embarked on earlier this year. He added the company has a plan to support sales growth and margin improvements moving forward.
He noted that new orders reflect strong growth, especially in the company's international business unit. Daktronics also benefitted from what Wiemann called inventory efficiency initiatives and price increases during the recent quarter.
Daktronics didn't issue an outlook for the current year, citing a high degree of uncertainty with respect to tariff rates, effectiveness, exceptions and competitive reaction.
"As we enter fiscal 2026, our transformation efforts ensure we are well-positioned to capitalize on increasing market demand," Wiemann said.
Write to Connor Hart at connor.hart@wsj.com
(END) Dow Jones Newswires
June 25, 2025 07:59 ET (11:59 GMT)
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