Daktronics to Report Q2 Earnings: What's in Store for the Stock?

Core Viewpoint - Daktronics is expected to report second-quarter fiscal 2026 results on December 10, 2025, with revenue estimates of $210.2 million, reflecting a growth of 0.87% year-over-year [1][9]. Group 1: Earnings and Revenue Expectations - The Zacks Consensus Estimate for earnings remains at 27 cents per share, compared to 8 cents reported in the same quarter last year [1]. - Daktronics has had mixed earnings performance in previous quarters, with an average negative earnings surprise of 26.08% [2]. Group 2: Factors Influencing Q2 Results - Strong customer demand for live events is anticipated to positively impact fiscal second-quarter results, with orders increasing by 81% year-over-year and 10% sequentially in the first quarter of fiscal 2026 [4]. - The company has secured three major league sports projects and several college and university projects, contributing to a positive outlook for the upcoming quarter [4]. - Daktronics' expanding portfolio and service offerings for live events are expected to drive top-line growth, alongside robust international business and strong demand for indoor solutions [5]. Group 3: Margin and Cost Considerations - Gross margin is projected to benefit from improved pricing, a favorable revenue mix, and stringent cost control measures [6]. - However, high spending related to digital transformation initiatives may negatively impact margins in the upcoming quarter, alongside concerns regarding tariff-related expenses [6]. Group 4: Earnings ESP and Zacks Rank - Currently, Daktronics has an Earnings ESP of 0.00% and a Zacks Rank of 3 (Hold), indicating that the odds of an earnings beat are not favorable at this time [7].