Pre-earnings brief
Reports
Wed, Jul 12, 2023
Est. EPS
—
Est. revenue
—
Implied move
±6.6%
EPS beat rate
63%
Daktronics, Inc. is a leading manufacturer of electronic display systems, including digital billboards and scoreboards. Operating in the Information Technology sector, Daktronics plays a crucial role in the growing demand for digital advertising and sports technology.
Last quarter
In the last quarter, Daktronics reported an EPS of $0.40, exceeding expectations by nearly 16%. However, the stock declined by 1.19% the following day, indicating mixed investor sentiment.
EPS beat streak
2Q
EPS beat rate
63%
Avg EPS surprise
-82.93%
Avg 1-day reaction
+2.08%
Investors are cautiously optimistic about Daktronics' upcoming earnings report, especially after a solid EPS surprise last quarter. However, the lack of revenue guidance raises concerns about future growth.
Bull case
If Daktronics can maintain or exceed its EPS surprise trend, it may indicate strong operational efficiency and demand for its products.
Bear case
Conversely, if the company fails to meet expectations or provide adequate guidance, it could lead to a significant drop in stock price, reflecting investor disappointment.
The print will turn on these.
Q1
What will be the EPS for Q2-2027?
The EPS figure will be crucial in determining whether Daktronics can continue its trend of beating earnings expectations, which could influence investor confidence.
Q2
What guidance will management provide for revenue growth?
Clear revenue guidance is essential for assessing the company's growth prospects and overall market demand for its products.
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Est. EPS
—
Est. Rev
—
Impl. Move
—
Why consensus could be wrong
The Street may underestimate Daktronics' ability to leverage recent technological advancements in digital displays, which could drive unexpected revenue growth.
Supporting evidence
The company has a history of exceeding EPS estimates, indicating strong operational management.
Recent trends in digital advertising suggest increased demand for Daktronics' products, which may not be fully reflected in current estimates.
Key risk
If Daktronics reports an EPS significantly above $0.40, it could challenge current market expectations.
Pre-commit to what would confirm each case.
This quarter, the focus will be on whether Daktronics can sustain its recent earnings surprises and provide positive guidance.
Bull confirmed if
An EPS of $0.45 or higher would confirm strong operational performance and investor confidence.
Bear confirmed if
An EPS below $0.30 would raise concerns about profitability and future growth.
What the market is pricing for the move.
Implied Move
±5.4%
Historical Avg
±11.1%
The options market is pricing in a potential move of about 5.4%, suggesting that investors are anticipating some volatility around the earnings announcement.
Options are pricing ±6.6% while DAKT has averaged ±11.1% over the last 8 prints — setup is pricing cheap.
ATM IV
0.6%
30d HV
27.0%
Likely market behavior by outcome. Not investment advice.
Beat & raise
If Daktronics beats expectations, history suggests the stock could rise by around 9.5%, confirming a positive outlook.
In line / cautious
If results are in line but cautious, the stock may react neutrally, reflecting uncertainty in future growth.
Miss
A miss could lead to a decline of about 10.3%, indicating investor disappointment.
The lines on the call that would change the story.