Daktronics Flashes Red As Sales Disappoint, Tariffs Loom Large

Daktronics Inc. (NASDAQ:DAKT) shares initially fell 8.55% to $13.90 in premarket trading Wednesday after the company reported weaker-than-expected fourth-quarter fiscal 2025 sales. This decline occurred despite the company’s reassurance of progress on its business transformation plan, and the stock has since regained its prior losses.

Sales fell 20.1% year over year to $172.6 million, missing the analysts’ estimate of $193.96 million, but rose 15.4% sequentially.

Orders increased 17% to $240.7 million in the quarter, lifting the backlog to $341.6 million, up from $316.9 million a year ago. Strong demand across the Commercial, High School Park and Recreation, and International segments drove this increase.

The gross margin narrowed to 25% in the quarter from 25.7% a year earlier, while the full-year margin fell to 25.8% from 27.2% in fiscal 2024.

Adjusted operating income was $5.8 million, excluding $7.5 million in one-time expenses. For the year, adjusted operating income totaled $49.6 million; reported income dropped to $33.1 million from a record $87.1 million.

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