The Dicker Data Ltd (ASX: DDR) share price is only slightly up after releasing a market update on its financial performance in H2 of FY21.
An intraday high of $11.60 has dropped to $11.47 as of writing – still up 0.35% on Friday's close. For context, the S&P/ASX 200 Index (ASX: XJO) is 0.11% higher.
Let's take a closer look at today's update.
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Revenue and profit update
In a statement to the ASX, Dicker Data declared its unaudited revenue and net profit estimates for the second half of the last financial year.
According to the company, revenue for the period came in at $1.07 billion – a 6.4% increase on the prior corresponding period (pcp). It is estimating net profit before tax to be roughly $45 million, which represents a 7.1% uplift on the pcp.
While these are not insignificant growth rates, they are lower rates than this time last year. Revenue at the end of FY20, for example, increased 18.2%.
Dicker Data blames a sluggish Q3 with flat revenue growth and a shortage in computer chips for the reduced rate.
The company expects this shortage to continue for some time to come but expects to clear its backlog of orders by the end of this calendar year.
Last year's strong revenue growth could also be attributed to the unique market situation brought on by the COVID-19 pandemic. A surge in demand for IT products caused by the shift in remote work and learning saw a spike in Dicker Data sales. Many companies that saw similar sales spikes have struggled to match those levels one year on.
Dicker Data share price snapshot
Over the past 12 months, the Dicker Data share price has increased by roughly 50%. This includes an almost 10% jump in value since the beginning of this year.
Since reaching a record high of $12.60 a share back in late February, shares in the company have fallen by 9%. The release of its Q3 results saw a drop in its share price in May.
Dicker Data has a market capitalisation of $1.98 billion.
