Daktronics Plunges 18.98% Amid Fraud Probe, Earnings Miss

On April 10, 2025, Daktronics' stock experienced a significant drop of 18.98% in pre-market trading, sparking concerns among investors and analysts alike.

Pomerantz LLP has initiated an investigation into potential securities fraud or other unlawful business practices by Daktronics and certain of its officers and/or directors. This investigation follows the company's third quarter fiscal 2025 financial results, which revealed significant expenses related to its "business transformation plan" and seasonally lower sales volume, leading to an EPS consensus miss.

On March 5, 2025, Daktronics reported its third quarter fiscal 2025 financial results, which included significant expenses related to its "business transformation plan" and seasonally lower sales volume. This news led to a 14.9% drop in the company's stock price, closing at $12.20 per share on that day.