Daktronics Stock Sees Biggest Drop In Over 2 Years As Q3 Earnings Disappoint, CEO Exits – Retail Sentiment Flips

Daktronics Inc. (DAKT) tumbled as much as 27% at the opening bell on Wednesday, marking its sharpest intraday decline in more than two years, after the video display supplier reported third-quarter results that fell short of Wall Street expectations.

The company also announced that Reece Kurtenbach will step down from his roles as President, Chief Executive, and Chairman of the Board, effective March 5. Daktronics has hired an executive search firm to assist in finding a permanent replacement. 

In the interim, the board has appointed Brad Wiemann, the company’s Executive Vice President, as President and CEO. Wiemann, who has been with Daktronics since 1993, will take over leadership immediately.

The company posted a loss of $0.36 per share, missing analyst forecasts of a $0.06 earnings per share (EPS). 

Revenue came in at $36 million – far below the $175 million Wall Street had anticipated, according to Stocktwits data.

Its net loss for the quarter was $17.2 million as product orders decreased 2.7% to $186.9 million compared to the previous quarter.

In its earnings statement, Daktronics cited broader economic pressures, including global tariff policies and shifting federal funding priorities, as factors impacting near-term business conditions. 

The company noted delays in U.S.-based project bookings and warned that corporate governance and business transformation costs would remain elevated in the fourth fiscal quarter.

Despite these challenges, Daktronics reaffirmed its long-term outlook. The company expects to grow revenue faster than its addressable market – currently estimated at 7% to 10%  – while expanding operating margins to a sustainable 10% to 12% and achieving a 17% to 20% return on capital by fiscal 2028.

Despite the sharp dip, retail sentiment on Stocktwits around Daktronics’ stock flipped to ‘bullish’ from ‘bearish’ a day earlier. 

The stock, which has already fallen more than 37% this year, slid below its 200-day simple moving average (SMA) following Wednesday’s decline. 

For updates and corrections, email newsroom[at]stocktwits[dot]com.

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