Daktronics, Inc. reported fiscal third‑quarter 2026 revenue of $181.9 million, a 21.6% year‑over‑year increase that was driven largely by a 62.6% jump in Live Events sales, which accounted for 41% of total revenue at $74.9 million.
Operating income for the quarter was $1.9 million pretax, with an adjusted operating income of $4.0 million. The operating margin settled at 1.1% of net sales, a slight compression from the prior year, largely because the backlog fulfillment was dominated by lower‑margin Live Events contracts and the company incurred $6 million in tariff expenses.
The company’s GAAP earnings per share were $0.06 and adjusted EPS was $0.09, missing the consensus estimate of $0.13 by $0.07. The miss was attributed to the tariff impact and the mix of lower‑margin orders, as noted by CFO Howard Atkins: "Gross profit margin in the quarter was essentially flat to the year‑ago quarter at 24%…offset by the fact that the backlog fulfillment in the quarter was largely from the lower‑margin live events business line."
Daktronics’ product and services backlog reached $342.3 million, up 25.3% from the prior year, and new orders grew 7.6% year‑over‑year. Executive Vice President Bradley Wiemann highlighted the strength of the order book: "orders in the quarter were once again over $200 million…elevating the product and services backlog to $342 million, 25% higher than it was this time last year."
Management reiterated its transformation agenda, emphasizing inventory reductions, pricing power in professional sports, and a $71.5 million credit facility to support growth and share repurchases. The company also confirmed its focus on cost discipline and margin expansion as it works toward a 2028 operating‑margin target of 10‑12% and a 17‑20% return on invested capital.
Investors reacted negatively to the earnings release, citing the EPS miss as the primary driver of the market’s response.
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