Daktronics Q2: Digital Transformation Set To Drive Strong Margin Growth

(7min) Summary Daktronics shares are up nearly 20% following the Q2 earnings release. Although sales growth was strong, order growth came in below expectations, and operating margins were pressured by one-time expenses. Though future growth expectations remain modest, there is substantial upside potential in margin improvement, particularly with the rollout of digital product offerings. With shares trading at 13.5 times earnings, I continue to maintain my Buy rating. Caliphoto/E+ via Getty Images Investment thesis Shares of Daktronics (NASDAQ: DAKT ) are up more than 30% since my initial recommendation in July, where I recognized the company’s leading position in the US market with a promising outlook

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