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

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.

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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.

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