Shares of Daktronics (DAKT) surged 5.13% in the pre-market Thursday, following the release of the company's fiscal third-quarter 2025 earnings report. The stock's upward momentum reflects investors' positive sentiment towards Daktronics' strategic initiatives and growth prospects outlined during the earnings call.
Despite a 12.2% year-over-year decrease in net sales for the quarter, Daktronics maintained a steady gross profit margin of 24.6%, similar to the previous year, through effective cost reduction strategies. The company is actively executing a business transformation plan aimed at enhancing operating margins and achieving ambitious financial targets by fiscal 2028.
One of the key drivers for optimism is Daktronics' strong quoting activity internationally, particularly in Europe, the Middle East, and Australia, with increased conversion rates from quotes to orders. The company is also witnessing promising growth potential in the high school market segment, where fewer than 10% of schools have converted to digital video displays, creating a significant opportunity for future expansion.
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