Daktronics Inc. (DAKT) shares tumbled 6.25% in pre-market trading on Wednesday following the release of its fourth-quarter fiscal 2025 results, which fell short of expectations. The company, known for its electronic display systems, reported a net loss and negative earnings per share, disappointing investors.
According to the earnings report, Daktronics posted a Q4 net loss of $9.425 million, translating to an earnings per share (EPS) of -$0.19. This result was significantly below the analyst estimates, which had projected an EPS of $0.15. The company's revenue for the quarter came in at $172.551 million, while operating income was reported at -$1.74 million.
Adding to investor concerns, Daktronics acknowledged the ongoing impact of tariffs on its business. The company stated that it "cannot reliably determine ultimate tariff impact at this time" but mentioned implementing measures to mitigate these effects. These measures include selective price adjustments and building escalation clauses into contracts. However, the company cautioned that the offsets may not be immediate, suggesting continued pressure on margins in the near term.