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.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.