Shares of Daktronics (NASDAQ:DAKT) surged higher on Wednesday, powered by an impressive earnings report. The stock rose as much as 21.3% in the early morning, settling back to a 14.1% gain by 1:35 p.m. ET.
Daktronics' Q2 2025 by the numbers
Fiscal second-quarter sales rose 4.5% year over year, landing at $208 million. Daktronics reported an adjusted net income of $13.9 million, or $0.27 per diluted share, for the period ended Oct. 26, matching the year-ago figure.
Wall Street doesn't always have consensus estimates for this hidden gem's upcoming results, and management doesn't provide guidance targets. The modest year-over-year sales increase and steady earnings per share may seem disappointing without that context, but it should be noted that the year-ago period was a soaring success. At the time, Daktronics was roaring back from slow orders in the deepest, darkest part of the inflation crisis.
Annual comparisons were always going to be difficult, and Daktronics more than matched investors' expectations. The stock has now gained 147% over the last year.
Business trends in fiscal year 2025
Daktronics' robust report showed a wide variety of sector-specific trends. Sales of live event signage rose 13% year over year while commercial signs, high school scoreboards, and transportation-related revenue held steady with single-digit revenue changes. Forward-looking orders add some nuance to Daktronics' revenue-generating project completions -- the commercial segment saw a 30% order increase in the first quarter while transportation orders came in 43% slower. Then again, the transportation segment is far smaller than commercial and live event signage, which accounted for 58% of total sales in the second quarter.
Management doesn't do financial guidance, but CEO Reece Kurtenbach noted that the order volume should keep rising in 2025 and pave the way to strong revenue over the next couple of years. Daktronics has an order backlog of $317 million, up from $267 million in the previous quarter.
The company is also knee-deep in an operating review and restructuring, which looks helpful so far but might have unexpected consequences over time. Daktronics is a potential turnaround story in the making.
Don’t miss this second chance at a potentially lucrative opportunity
Ever feel like you missed the boat in buying the most successful stocks? Then you’ll want to hear this.
On rare occasions, our expert team of analysts issues a “Double Down” stock recommendation for companies that they think are about to pop. If you’re worried you’ve already missed your chance to invest, now is the best time to buy before it’s too late. And the numbers speak for themselves:
- Nvidia: if you invested $1,000 when we doubled down in 2009, you’d have $363,671!*
- Apple: if you invested $1,000 when we doubled down in 2008, you’d have $45,954!*
- Netflix: if you invested $1,000 when we doubled down in 2004, you’d have $486,533!*
Right now, we’re issuing “Double Down” alerts for three incredible companies, and there may not be another chance like this anytime soon.
*Stock Advisor returns as of December 2, 2024
Anders Bylund has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
/AI%20(artificial%20intelligence)/Businessman%20touching%20the%20brain%20working%20of%20Artificial%20Intelligence%20(AI)%20Automation%20by%20Suttiphong%20Chandaeng%20via%20Shutterstock.jpg)
/Intel%20Corp_%20Santa%20Clara%20campus-by%20jejim%20via%20Shutterstock.jpg)
/EV%20in%20showroom%20by%20Robert%20Way%20via%20Shutterstock.jpg)
