Daktronics (DAKT) Q1 2027 Earnings Call Transcript

Daktronics reported strong first quarter results for Fiscal Year 27 during its earnings call. The company's President and CEO, Ramesh Jayaraman, and Acting CFO, Howard Ian Atkins, presented the financial overview. The Q1 net sales growth was 7.1%, driven by robust demand across key end markets despite a shorter quarter compared to the previous year.

Operating income expanded by 7.2%, and EPS reached $0.40 for the quarter. The company's new business pipeline remained strong, with substantial projects expected to yield purchase orders in the coming quarter. In Q1, Daktronics opened a new manufacturing plant in Mexico, which successfully completed its first major production run of narrow pixel pitch products.

The company also deployed its next-generation real-time 2D/3D graphics rendering engine, Camino 8, in over 10 venues across NHL, MLS, and NCAA football, volleyball, and basketball programs. Notable installations included the University of Illinois, Ohio State, Penn State, North Carolina, and numerous other venues. In terms of market verticals, live events saw installations of college football and basketball projects ahead of the upcoming season, while commercial business secured large billboard and airport advertising refresh orders.

In transportation, Daktronics won intelligent transportation systems (ITS) projects, contributing to the growth of its backlog. The airport business secured narrow pitch orders from Los Angeles International and Spokane International Airports, and the transit business won large orders from SunRail in Florida and a project in Houston.