Daktronics (DAKT) DAKT Q1 Financial Results Summary
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Daktronics, Inc. (DAKT) Q1 2027: Strong EPS Growth Amid Sales Increase — Positive Outlook
Daktronics, Inc. (NASDAQ: DAKT) reported its fiscal 2027 first quarter results, showcasing a solid performance with earnings per share (EPS) of $0.40, reflecting a significant increase of $0.07 or +21.2% compared to $0.33 in the same quarter last year. This quarter also saw sales rise to $234.6 million, marking a growth of $15.6 million or +7.1% from $219.0 million in Q1 of fiscal 2026, despite the reporting period being one week shorter this year.
This quarter's results are a positive development for shareholders, as the company not only achieved notable EPS growth but also maintained a healthy operating margin of 10.6%. The increase in both sales and EPS indicates effective execution of Daktronics' growth strategies and operational excellence initiatives.
Key Financial Metrics:
- Sales: $234.6 million, up $15.6 million or +7.1% YoY from $219.0 million.
- Operating Income: $24.9 million, an increase of $1.6 million or +7.2% YoY from $23.3 million.
- EPS: $0.40, up $0.07 or +21.2% YoY from $0.33.
- Operating Cash Flow: $31.4 million, compared to $26.1 million in Q1 FY 2026.
- Product Backlog: $311 million, down from $360.3 million YoY but still above $300 million for the sixth consecutive quarter.
- Quarter-end Cash Balance: $155 million.
Shareholder Returns and Guidance
Daktronics has continued to return capital to shareholders, repurchasing $4.4 million worth of shares during the quarter. The company remains committed to its capital deployment strategy, which includes investments in operational efficiency and growth initiatives.
Looking ahead, investors should monitor Daktronics' second quarter closely, particularly for the anticipated substantial orders that were not booked in Q1 but are expected to materialize in Q2. The company’s strategic focus on expanding its core markets and enhancing customer engagement is expected to drive further growth.
Conclusion
Overall, Daktronics' Q1 2027 results reflect a strong start to the fiscal year, with significant improvements in EPS and sales despite the challenges of a shorter reporting period. The company’s ongoing commitment to operational excellence and strategic growth initiatives positions it well for continued success. Investors should keep an eye on the upcoming quarter for potential order bookings and further developments in Daktronics' growth strategy.
Note: All amounts in the following tables are in thousands, except per share amounts.
| Three Months Ended | ||
|---|---|---|
| August 1, 2026 | August 2, 2025 | |
| Net sales | $234,565 | $218,972 |
| Cost of sales | 162,966 | 153,900 |
| Gross profit | 71,599 | 65,072 |
| Operating expenses: | ||
| Selling | 18,990 | 16,834 |
| General and administrative | 15,559 | 14,295 |
| Product design and development | 12,114 | 10,671 |
| 46,663 | 41,800 | |
| Operating income | 24,936 | 23,272 |
| Nonoperating income (expense): | ||
| Interest income (expense), net | 1,134 | 893 |
| Other expense, net | -403 | -1,942 |
| Income before income taxes | 25,667 | 22,223 |
| Income tax expense | 6,237 | 5,753 |
| Net income | $19,430 | $16,470 |
| Weighted average shares | ||
| outstanding: | ||
| Basic | 48,185 | 48,902 |
| Diluted | 48,901 | 49,736 |
| Earnings per share: | ||
| Basic | $0.40 | $0.34 |
| Diluted | $0.40 | $0.33 |
Note: All amounts in the following tables are in thousands.
| ASSETS | August 1, 2026 | May 2, 2026 |
|---|---|---|
| CURRENT ASSETS: | (unaudited) | |
| Cash and cash equivalents | $154,585 | $131,639 |
| Accounts receivable, net | 154,700 | 118,590 |
| Inventories | 117,517 | 110,471 |
| Contract assets | 51,608 | 66,552 |
| Current maturities of long-term | 3,499 | 3,405 |
| receivables | ||
| Prepaid expenses and other | ||
| current assets | 15,747 | 11,278 |
| Income tax receivables | 3,120 | 6,047 |
| Total current assets | 500,776 | 447,982 |
| Property and equipment, net | 64,292 | 64,263 |
| Long-term receivables, less | ||
| current maturities | 371 | 1,125 |
| Goodwill | 3,605 | 3,685 |
| Intangibles, net | 3,190 | 3,263 |
| Right of use, investment | ||
| in affiliates, and other | 12,906 | 11,828 |
| assets | ||
| Deferred income taxes | 22,240 | 22,266 |
| TOTAL ASSETS | $607,380 | $554,412 |
| LIABILITIES AND | ||
| STOCKHOLDERS' EQUITY | August 1, 2026 | May 2, 2026 |
| CURRENT LIABILITIES: | (unaudited) | |
| Current portion of long-term | $1,150 | $1,150 |
| debt | ||
| Accounts payable | 80,319 | 68,617 |
| Contract liabilities | 85,969 | 65,310 |
| Accrued expenses | 49,865 | 44,858 |
| Warranty obligations | 13,159 | 12,398 |
| Income taxes payable | 316 | 1,375 |
| Total current liabilities | 230,778 | 193,708 |
| Long-term warranty | 24,663 | 24,362 |
| obligations | ||
| Long-term contract | 20,301 | 20,655 |
| liabilities | ||
| Other long-term obligations | 4,633 | 5,289 |
| Long-term debt, net | 9,355 | 9,629 |
| Deferred income taxes | 22 | 22 |
| Total long-term liabilities | 58,974 | 59,957 |
| STOCKHOLDERS' EQUITY: | ||
| Preferred Shares, $0.00001 | ||
| par value, authorized 5,000 | — | — |
| shares; no shares issued | ||
| and outstanding | ||
| Common stock, $0.00001 par | ||
| value, authorized 115,000 | ||
| shares; 53,715 and | ||
| 53,650 shares issued as of | — | — |
| August 1, 2026 and May 2, 2026 | ||
| respectively | ||
| Additional paid-in capital | 198,895 | 196,837 |
| Retained earnings | 192,716 | 173,286 |
| Treasury stock, at cost, | ||
| 5,631 and 5,406 shares as | -69,734 | -65,324 |
| of August 1, 2026 and May 2, | ||
| 2026, respectively | ||
| Accumulated other |
