Data#3 share price soars 6% after first half earnings growth announcement

The Data #3 Ltd (ASX: DTL) share price is one to watch this morning after recording "strong" earnings growth in the first half of FY 2020.

| More on:
a woman

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Data#3 Limited (ASX: DTL) share price has rocketed out of the gates this morning, up 6.68% at the time of writing after the Aussie tech group's ASX announcement this morning.

What did Data#3 announce today?

The technology solutions group expects to report strong first half earnings growth for 1H 2020. Data#3 has advised that its consolidated net profit before tax (NPBT) is at the top-end of its November 2019 guidance. 

Back in November, Data#3 announced at its annual general meeting (AGM) that it expected NPBT to land between $11.0 million and $12.5 million. The Data#3 share price rocketed higher after the 2019 AGM following a successful period of growth last year. The group now expects its NPBT to come in at approximately $12.5 million in 1H 2020.

The group recorded first half revenue growth in FY19 of 17.7% to $644.4 million and pre-tax profit growth of 123.3% to $9.0 million. This strong start to the year underpinned a full-year result headlined by 19.8% growth in revenues to $1.4 billion and a pre-tax profit increase of 30.2% to $26.6 million. An uplift in Data#3's core business and public cloud-based earnings were the big drivers of the group's earnings in the last financial year.

The group will announce its audited half-year results and dividend to the market on 19 February 2020. 

How has the Data#3 share price performed recently?

Data#3 is an Aussie IT services and solutions provider, which has been listed since 1997. The Brisbane-based tech group boasts a market cap of $659.01 million and sits within the S&P/ASX 300 Index (INDEXASX: XKO).

The Data#3 share price has enjoyed a strong start to the year as the All Ordinaries Index (INDEXASX: XAO) has rocketed to 7,196.30 points. At the time of writing, Data#3 shares are up 12.89% so far this year, despite a 3.12% fall in yesterday's trade. 

The news for shareholders is even better over a medium and longer term time period. Prior to this morning's gains, the group's shares had climbed a whopping 149.38% higher in the last year alone and 485.51% in the last 5 years.

That's impressive growth in the Data#3 share price, especially when you consider that doesn't include the 2.50% dividend yield.

Motley Fool contributor Kenneth Hall has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Data#3 Ltd. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Share Gainers

Young girl drinking milk showing off muscles.
Share Gainers

Here are the top 10 ASX 200 shares today

It was a great end to the trading week for ASX investors today.

Read more »

A man sits thoughtfully on the couch with a laptop on his lap.
Share Gainers

3 ASX 200 stocks smashing the benchmark this week

These three ASX 200 stocks are leading the charge this week. Here’s how.

Read more »

A young woman holding her phone smiles broadly and looks excited, after receiving good news.
Share Gainers

Why A2 Milk, EOS, GQG, and Mineral Resources shares are racing higher today

These shares are ending the week strongly. But why?

Read more »

A man wearing a red jacket and mountain hiking clothes stands at the top of a mountain peak and looks out over countless mountain ranges.
Share Gainers

Here are the top 10 ASX 200 shares today

It was another disappointing day for ASX investors this Thursday.

Read more »

two men smiling with a laptop in front of them, symbolising a rising share price.
Share Gainers

Why Pinnacle, PWR, Race Oncology, and Vulcan shares are flying today

These shares are having a good session on Thursday. But why?

Read more »

A beautiful woman holds up one finger with one hand and has her hand on her waist with the other as she smiles widely as though she is very pleased about something.
Share Gainers

Why Boss Energy, Emeco, Mineral Resources, and Plenti shares are pushing higher today

These shares are having a good time on hump day. But why?

Read more »

Three small children reach up to hold a toy rocket high above their heads in a green field with a blue sky above them.
Share Gainers

3 ASX 300 shares going gangbusters on Wednesday

Investors are bidding up these three ASX 300 shares today. But why?

Read more »

Man raising both his arms in the air with a piggy bank on his lap, symbolising a record high.
Share Gainers

Here are the top 10 ASX 200 shares today

It was a huge Tuesday for ASX shares, with the index resetting its record high.

Read more »