Data#3 shares rise on better-than-expected profit guidance
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The news: Shares in Data#3 climbed on the ASX after the Brisbane-based IT services provider set first-half profit guidance that topped market expectations.
The numbers: Data#3 shares were up 2.9% to $7.48 by 12:35pm AEDT.
The company said it expects first-half pre-tax profit of between $31 million and $33 million. This would be higher than the $30.8 million recorded in the previous corresponding period. It would also be above consensus forecasts of $30 million.
The increase includes net interest income of $6.2 million, $1.2 million ahead of average estimates.
The context: Data#3 said it expects earnings to skew to the second half of the year, with its fourth quarter likely to contribute "significantly" to its annual profit.
The company noted that its pipeline, across all lines of business, is being boosted by public sector spending on new infrastructure projects, investments in public and private education and health, and advancements in artificial intelligence.
However, the business said there are many variables that can impact growth, including the timing of customer decision making, government elections, product shipments and services project milestones.
The sources: ASX announcement, E&P Capital research
