MENU

The Data#3 Limited (ASX:DTL) share price slides on profit downgrade

Credit: Daryl Cauchi

IT services provider Data#3 Limited (ASX: DTL) was one of the worst performers on the local market on Wednesday, down 4% to $1.62, after the company released an estimate of FY18 profit.

After a streak of positive results, in December 2017 Data#3 saw its share price plunge on the news that profit for the first half of FY18 would be substantially lower than the previous corresponding period due to some project delays.

However, management was confident that a strong performance in the second part of the year would have ensured that FY18 results would have been an improvement over FY17.

Today, the company announced that the second half was indeed positive, with a record net profit before tax of $16 million. Despite this, the consolidated net profit after tax of the Data#3 group for FY18 will be down 9% from the prior year, to $14 million.

Data#3 also revealed that its subsidiary Discovery Technology has instituted a legal proceeding for debt and economic loss recovery against a client for the early termination of a 5-year supply contract that negatively impacted the results.

But there’s plenty of other companies that are growing their profits this year. Click here to find out about three blue chip stocks to back for 2018.

Top 3 ASX Blue Chips To Buy In 2018

For many, blue chip stocks mean stability, profitability and regular dividends, often fully franked..

But knowing which blue chips to buy, and when, can be fraught with danger.

The Motley Fool’s in-house analyst team has poured over thousands of hours worth of proprietary research to bring you the names of "The Motley Fool’s Top 3 Blue Chip Stocks for 2018."

Each one pays a fully franked dividend. Each one has not only grown its profits, but has also grown its dividend. One increased it by a whopping 33%, while another trades on a grossed up (fully franked) dividend yield of almost 7%.

The names of these Top 3 ASX Blue Chips are included in this specially prepared free report. But you will have to hurry. Depending on demand – and how quickly the share prices of these companies moves – we may be forced to remove this report.

Click here to claim your free report.

Motley Fool contributor Tommaso Autorino 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.

Two New Stock Picks Every Month!

Not to alarm you, but you’re about to miss a very important event! Chief Investment Advisor Scott Phillips and his team at Motley Fool Share Advisor are about to reveal their latest official stock recommendation. The premium “buy alert” will be unveiled to members and you can be among the first to act on the tip.

Don’t let this opportunity pass you by – this is your chance to get in early!

Simply enter your email now to find out how you can get instant access.

By clicking this button, you agree to our Terms of Service and Privacy Policy. We will use your email address only to keep you informed about updates to our website and about other products and services we think might interest you. You can unsubscribe from Take Stock at anytime. Please refer to our Financial Services Guide (FSG) for more information.