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

A couple sits on a sofa, each clutching their heads in horror and disbelief, while looking at a laptop screen.
Share Gainers

Here are the top 10 ASX 200 shares today

Investors endured a rough Friday to close the trading week today.

Read more »

Man drawing an upward line on a bar graph symbolising a rising share price.
Share Gainers

Why Pointsbet, Qantas, Serko, and Yandal shares are pushing higher today

These shares are avoiding the market selloff today. But why?

Read more »

A happy young couple lie on a wooden deck using a skateboard for a pillow.
Share Gainers

These were the best performing ASX 200 shares in October

Did you own the best performers on the index last month? Here they are.

Read more »

The silhouettes of ten people holding hands with their arms raised against the sky, as the sun rises or sets in the background.
Share Gainers

Here are the top 10 ASX 200 shares today

ASX investors copped another rough session this Thursday.

Read more »

two men in hard hats and high visibility jackets look together at a laptop screen that one of the men in holding at a mine site.
Resources Shares

Mineral Resources share price rockets 16% on $1.1 billion news!

ASX 200 investors appear thrilled with Mineral Resources' latest news.

Read more »

Shot of a young businesswoman looking stressed out while working in an office.
Share Gainers

Here are the top 10 ASX 200 shares today

It was a disappointing Wednesday session for ASX investors today...

Read more »

Hiker man backpacker with hands up in the summer mountains with cloudy sky.
Share Gainers

Here are the top 10 ASX 200 shares today

Investors enjoyed anther positive session this Tuesday.

Read more »

A man clenches his fists in excitement as gold coins fall from the sky.
Share Gainers

Why Firefly, Premier Investments, Serko, and Zip shares are roaring higher today

These shares are catching the eye with strong gains on Tuesday. But why are they rising?

Read more »