Daktronics Q4 revenue falls 20% hurt by tariff uncertainty

Overview

• Digital display maker Daktronics fiscal Q4 rev falls 20% yr/yr to $172.6 mln

• Company reports Q4 operating loss of $1.7 mln, down from profit last year

• Q4 orders up 17% yr/yr, reflecting strong market demand

• Co says measures to mitigate tariff impacts include selective price adjustments, escalation clauses built into contracts

Outlook

• Daktronics reconfirms 7-10% sales growth over three years

• Company expects 10-12% operating margin for the next three years

• Daktronics sees 17-20% ROIC in its three-year plan

• Company cites uncertainty in tariff environment impacting forecasts

Result Drivers

• TARIFF UNCERTAINTY - Tariff environment remains uncertain, impacting cost management strategies, per CEO Brad Wiemann

• ORDER GROWTH - Strong demand in International business unit drove Q4 orders up 17% YoY, per CEO Brad Wiemann

• BUSINESS TRANSFORMATION - Initiatives focused on inventory efficiency and value-based pricing contributed to improved cash flow, according to CEO Brad Wiemann

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "strong buy" and the breakdown of recommendations is 2 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the electronic equipment & parts peer group is "buy."

• Wall Street's median 12-month price target for Daktronics Inc is $22.00, about 30.9% above its last closing price of $15.20

• The stock recently traded at 16 times the next 12-month earnings vs. a P/E of 15 three months ago

Press Release: ID:nGNXbsZF6s