Data#3 shares fall on in-line FY result
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More news: Record revenue was not enough to impress investors as Data#3 fell 5% to $8.27 at market open.
It negated a climb the stock was enjoying in the five days leading up to results being handed down.
Both Jarden and E&P Capital analysts said the result was in line but slightly lower than consensus.
What they said: "While the outlook was generally upbeat, we still have questions on FY25 earnings risks given services and cyclical headwinds," Jarden said.
"As a result, we question whether the market is willing to pay 28x FY25 estimate consensus price to earnings in the current operating environment.
"We note, however, we continue to view DTL as a high quality company and may get more positive if we get comfortable that cyclical headwinds are receding or aforementioned questions are not a significant risk."
Data#3 reports record revenue, boosts dividend
The news: Brisbane-based IT services provider Data#3 reported a record $2.8 billion in revenue for the financial year ending 30 June, with a net profit after tax of $43 million.
The numbers: The company also boosted its dividends per share to 25.5 cents, up 16%.
Data#3's revenue was up 7.6% compared to the previous financial year, but the bigger jump was its net profit. Its $43 million profit after tax was 17% higher than the financial year ending June 2023.
Among the highlights called out by CEO Brad Colledge was recurring gross sales rising 67%.
The context: Data#3 provides a wide range of IT services, including cloud migration, cybersecurity and consulting. It has not been buoyed by the artificial intelligence tidal wave in the same way others more directly impacted by the highly-hyped tech, like data centre company NextDC.
In its results brief, however, the company cited the expectation of AI driving massive infrastructure spend around the world as something it would be taking advantage of.
What they said: "Gross sales growth of 7.6% and EBIT growth of 5% in a challenging economic environment and without compromising gross margins, was a considerable achievement for our company," Colledge said in a statement.
“Our core business remains sound, as we continue to align with our customers’ priorities, such as security, multi-cloud and connectivity, and strengthen our partnerships with world-leading vendors.”
The sources: ASX announcement, ASX
